Does your business have attribution under control? Or, is your marketing ROI in a “leaky bucket,” full of holes that show a lack of understanding about your customer behavior? Having a solid attribution model ensures the money invested in marketing is being spent wisely and brands aren’t hemorrhaging budget where the ROI is least effective. For example, if your company spends $500 on paid search and acquires 30 leads, this means your cost per acquisition (CPA) is approx. $17 per user. Contrast this with a $2,000 spend on a direct mail campaign resulting in only 10 leads generated and a $200 CPA, and it’s clear paid search is more efficient and generates a better ROI. But do you really know the complete picture of what happened? For instance, did any of the direct mail recipients then became organic search conversions? Only having half the information means only being able to fix half of the problem. Attribution is crucial. Knowing where your leads and sales come from makes it possible to pinpoint when, where and how your audience is most likely to convert, whether it’s through pay per click advertising (PPC), email, social media or another channel. What Attribution Model is Right For You? Here are six different types of attribution models currently used by marketers and we also list the pros and cons of each model. First Click This model applies 100% of the credit for a conversion to a consumer’s first touchpoint with your business (filling out a contact form, subscribing to emails or making a purchase). Pros : If you’re focused on demand marketing, you’ll see which effort drove the first interaction with your business. Cons : This model offers limited insight into the rest of the customer journey. Without knowing which marketing channels have been the most influential, you will struggle to justify marketing’s full impact on your business’ bottom line. You May Also Enjoy: Attribution Still a Huge Challenge for B2B Marketers 2019 B2B Marketing Outlook Survey B2B Marketing Automation All-Stars Last Click The opposite of first click attribution, last click attribution assigns all credit to the final touchpoint that leads to a purchase. Pros : If you’re solely focused on closed leads and sales this model will be an effective strategy for you. Cons : This model ignores the multi-touch path-to-purchase. And, considering it takes six to eight touchpoints, to secure a sale, you be left with zero visibility over influential actions along the way. Linear Attribution Here, we split the weighting evenly across every touchpoint in the customer journey. For example, if there are five touchpoints, each would get 20% of the credit. This model lets marketers make the best of the buying journey as a whole, rather than just focusing on one touchpoint. Pros : By assigning equal credit to each interaction, you’re able to analyze your campaigns...![]()
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