Today's marketing teams require a multi-channel approach to carrying out both online and offline marketing campaigns. While utilizing multiple channels enables marketers to personalize a customer's sales journey throughout the sales funnel, there are some unique challenges when analyzing a particular marketing campaign and its ROI.
One key metric to determine your marketing ROI is through attribution. If your company is not focusing on sales and lead attribution, here is why it should be at the forefront of your marketing campaign.
What is Attribution?
Attribution indicates how prospective customers enter your sales funnel. Likewise, it serves as a touchpoint of customer experiences throughout the buyer's journey. It specifies what door they came through, what channels and messages resonated with them the most, and what was the deciding factor that led to a purchase.
A common flaw for many businesses is they fail to clearly understand attribution, leading to a lack of understanding of which sales tactics and initiatives are working best for their bottom line. Focusing on lead and sales attribution can help your business determine where it is getting the most ROI for your marketing dollars, and what acquisition channels are the most valuable.
Why is Attribution Important?
Attribution programs require marketers to aggregate consumer data across all levels of your marketing channels. The data is then normalized and properly weighed to give your business better insight into the customer's decision-making process.
For instance, if a potential customer receives both an email ad and a display ad, but only clicks on the promotion from the email, it indicates to your marketing team the email was more effective at enticing interest for your good or service for that particular customer.
Understanding attribution can improve your business' decision-making process. Attribution helps you determine which channels are better at generating new leads, or which channels are more effective at converting leads into finalized sales. If you find your promotional emails are generating more leads, then you can allocate more resources to your email campaign.
To achieve efficacious attribution requires advanced marketing analytics that can take a large amount of data and convert it into personal-level insights, which you can then use to optimize your marketing campaigns.
Benefits of Effective Attribution
Avoid the Pitfalls
Despite the many benefits attribution can bring to your business, some common pitfalls can obscure the success of marketing campaigns. To ensure you are getting the most valuable insight from your data, these are the common mistakes marketers should avoid when using attribution models:
First-touch attribution assumes a customer chose to convert after the first advertisement they came across. Therefore, it gives attribution to the first touchpoint, regardless of any additional messaging subsequently introduced.
Last-touch attribution gives entire attribution credit to the last touchpoint the customer interacted with before finalizing the purchase. It does not take into account any prior engagements. Both single-touch models fail to account for the broader customer journey.
Multi-touch attribution models look at every touchpoint a customer engages with throughout the buyer's journey. Therefore, multi-touch models are more accurate at depicting the efficacy of your marketing efforts. These models are different by how they divide credit between touchpoints. These include:
How to Improve Your Sales Attribution
Sales and lead attribution are crucial aspects for your business, and knowing how to accurately gauge your customer's journey is paramount. Want to learn more, but not sure where to start and need some expert advice, check out our website to view our informational webinars, or sign up for our weekly newsletter.