Marketing attribution has become common lingo to marketers. The customer journey has become more complex over the years. There are many channels and campaigns in each journey leading up to a conversion. As a marketer, you want to know how significant each channel or campaign is to conversion. This is what attribution modeling is about. Marketing Attribution has therefore kicked up a notch in a bid to help marketers make the best out of their marketing strategies.
There are various reasons why market attribution modeling is important. These include:
Determining Necessary Marketing Channels
There are two broad categories of marketing strategies:
- Those that are ancient time-tested and proven to be effective.
- Those that are emerging over time particularly due to improved technology.
Risk-averse marketers lean towards what’s common and has worked over time. In other cases, some marketers might be eager to jump on every bandwagon when it comes to newer marketing channels and campaigns. Both of the approaches can go horribly wrong. On one hand you might end up underutilizing your budget and therefore shortchanging yourself of the potential revenue. On the other hand, you might end up squandering your budget on emerging trends only to waste the money and have little to nothing to show for it. Instead of subjectively making these decisions, marketing attribution would help you to determine which channel is necessary and which isn’t. With this you can eliminate or include channels in your strategy based on concrete and actionable data.
Assessing the Effectiveness of Channels and Campaigns
Whenever you include certain channels or campaigns on your marketing strategy, you want to know how much they contribute to conversions. Multi-touch attribution models assign credit in percentages to every touch-point in the customer’s journey. With this information you can be able to allocate your funds accordingly.
Therefore, attribution helps you to answer questions such as:
- How much does each channel contribute to conversions?
- How much do you allocate to each of these channels?
- Which channel makes most sense when you compare cost versus the revenue generated?
- Which channel would lead to higher conversions if it had a larger share of the budget?
This way, you can justify the allocation of the marketing budget among various channels and campaigns. If you would like to increase the amount allocated to one touch-point and reduce another, you need to have a data-backed presentation for management or the client. This is made possible by attribution.
Optimizing Your Marketing Process
Attribution marketing has opened our eyes to the need for marketing optimization. Having conversions isn’t enough. You need to increase the sales periodically in order to generate more revenue. Furthermore, you need to reduce the cost per channel over time. These processes constitute marketing process optimization. At the end of the day, the aim is to boost revenue.
When you have a good attribution model, you can draw actionable information. With this information, you can include or remove various touch-points in the customer journey. You can also push for those touch-points that weigh heavier on the customer’s decision to purchase, download, or install the product. This way no money is being wasted or underutilized.
Attribution marketing has opened the eyes of many marketers. This is especially true of those who have been using single-point models for complex processes. Although the simpler models are cheaper and might even cost nothing they don’t yield the best information. However, with the algorithmic attribution model or even Markov attribution model you can optimize your process to maximize your revenue. These may be more complex and expensive but they’re worth it in the end. We can therefore agree that marketing attribution is important and must be utilized by every marketer for the best results.
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