Marketers track leads, conversions, and return on investment (ROI) using different attribution models. A custom attribution model takes into account a company’s distinct product offerings and sales pipeline. With the right measurement technique, you can achieve the best attribution marketing results.
With so many attribution models, platforms, and vendors to choose from and follow, marketers often struggle to discover the optimal mix of analytics to identify and eliminate inefficient spend. To help you find the most practical approach, here’s how to measure effectively B2B revenue attribution.
One touch vs. Multi-key
In one-touch attribution models, revenue is attributed to a single point of contact throughout the customer journey. It is the most prevalent model, with 60% of marketers using single touch models and 40% using multiple touch models. A one-touch paradigm has the advantage of being simple to grasp and operate. The downside is that it overlooks additional touchpoints during the buying journey. Because of this blind spot, a marketer may invest in a marketing campaign that turns out to be less successful than expected.
On the other hand, multi-touch attribution is most effective when a substantial amount of data from multiple sources is available. In addition, these models more accurately represent the full spectrum of customer interactions with your business. You can determine whether the channels are underperforming or outperforming the rest of your media mix by identifying many touch points. It will give you the knowledge you need to tailor your plan and effectively manage your marketing budget.
Specifically, here are the types of one-touch attribution models:
1. First contact
This attribution model describes the initial point of contact in a customer’s marketing journey. For example, when a customer clicks for the first time on a social media ad, that contact is fully credited. It wouldn’t make any difference if a buyer engaged in other actions, such as subscribe to a newsletter, before finalizing a purchase. When a customer makes a purchase, the first contact or first interaction pattern gets full credit.
This strategy benefits businesses that can convert their customers faster and those with a short buying cycle. On the other hand, this strategy ignores previous marketing activities that customers have undertaken prior to the conversion. Marketers should keep this in mind when analyzing the success of their campaigns using this method.
2. Last touch
This attribution approach is based on the most recent point of contact your consumer had with you before making a purchase. For example, if the collection of information via a email marketing was the last point of contact before a consumer makes an acquisition, this will be the assigned marketing platform. Many well-known platforms take advantage of this paradigm. This technique is particularly beneficial for organizations with short sales cycles and near instantaneous conversion rates.
Due to the massive volume of conversions, marketers can determine the most recent touchpoint that got customers to take action. Like the first contact or first click model, this attribution model gives full credit to a single touchpoint or interaction rather than rewarding all touchpoints that helped the consumer take the necessary action is a downside. important.
In the meantime, here are the four most common types of multi-touch attribution:
3. Linear attribution
Linear attribution is used to track every touchpoint a consumer has on the way to making a purchase. It assigns equal weight to each of these exchanges, crediting each message equally for initiating the conversion. The only flaw with linear attribution is that not all touchpoints are equally important in reality. A person’s buying decision is significantly less influenced by visiting your website or registering for an online course than by attending a conference.
4. U-shaped attribution
This attribution approach gives the most credit to the first and last touchpoints (typically 40% each) and evenly distributes the remaining 20% ââamong all subsequent touchpoints. This is the optimal method for determining end-to-end performance. This model is best for those who recognize that the initial and final touchpoints are more critical than the intermediate ones.
5. W-shaped attribution
This is similar to the U-shaped concept, but with the addition of a critical touchpoint called the opportunity stage. Accordingly, in the W-shaped model, the contact points responsible for initiating contact, generate leads, and production opportunities each receive 30% of the credit. The remaining 10% will be used to facilitate additional meetings.
6. Decline of time
As with a linear attribution model, the temporal decay attribution model assigns a large number of touchpoints. This strategy is distinguished by the fact that it places greater importance on touchpoints located closer to the point of sale of goods or services. Conversations or touchpoints that take place before a customer’s purchase will receive less credit than touchpoints that take place just before a customer’s purchase.
To take with
Many marketers still don’t have the understanding to properly implement attribution models. Use the techniques described above to accurately measure marketing attribution. By understanding attribution models, you can make informed decisions that will have a positive, long-term effect on the performance of your marketing initiatives and the overall health of your business.