Digital marketing has greatly transformed the way businesses promote and market their products and services. With the explosion of marketing channels and multiple touchpoints in the customer journey, it’s become increasingly challenging for businesses to attribute credit for conversions and sales to the right channels. This is where digital marketing attribution models come in handy. Attribution models help businesses understand how their marketing channels influence customer behavior and enable them to make data-driven decisions. In this blog post, we’ll explore the different types of digital marketing attribution models and their benefits.
First-Touch Attribution Model
This model attributes all credit for a conversion to the first touchpoint a customer interacts with in their journey. For example, if a customer discovers your brand through a Google search, the first-touch attribution model will assign all credit for that sale to Google search. The main advantage of this model is that it provides a clear indication of where to invest your marketing budget to bring in new customers.
Last-Touch Attribution Model
As opposed to first touch, the last-touch model attributes all credit for a sale to the last interaction a customer had with your brand. For instance, if a customer first found your brand on social media, then subscribed to your newsletter later, and finally made a purchase after clicking on an email, the last-touch attribution model assigns credit for the sale to that email click. The primary benefit of this model is that it offers a clearer view of the customer journey just before the purchase.
Linear Attribution Model
The linear attribution model equally assigns the credit for a sale or conversion to each touchpoint that a customer interacts with along their journey, regardless of the point in the funnel. If a customer discovered your website through a PPC ad, then visited your site through an organic search, social media, and finally made a purchase through a referral link, the linear model assigns 20% of the credit to each touchpoint. The significant advantage of this model is that it accounts for every marketing channel a customer interacts with leading to a sale.
Time Decay Attribution Model
The time decay model assigns more weight to the touchpoints further down the customer journey, with the most recent touchpoint getting more credit. This model acknowledges the impact of the touchpoints that directly preceded the sale and give more credence to the channels that get people to the point of purchase.
Benefits of Attribution Models
Digital marketing attribution models provide businesses with several benefits, including
Better Insight Into Customer Journey
Attribution models help businesses understand how customers interact with their brand across multiple touchpoints in their online journey, giving them a better handle on what resonates with their target audience.
Improved Marketing Channel Effectiveness
Attribution modeling helps businesses allocate their marketing budget more effectively by understanding which channels are driving more sales and where to invest more.
By providing businesses with a more accurate view of where their revenue streams come from and how well certain marketing channels perform, attribution modeling helps businesses optimize their marketing efforts for maximum ROI.
Digital marketing attribution modeling provides businesses with a better understanding of their customers’ online journey through a clear view of channel effectiveness. By understanding which touchpoints drive sales and where to invest their marketing budgets, businesses can optimize their efforts, improve their ROI, and make more data-driven decisions. Consider which attribution model would work best for your business, and get started reaping the benefits of attribution modeling today.