In this post, we will discuss the top 7 benefits of attribution modelling in 2023, which are enough to initiate the inspiration you need. The benefits will get down to explaining what attribution modelling actually does for your business and why you need to care more about it!
Top 7 Benefits of Attribution Modelling in Digital Marketing
Benefits of doing marketing attribution right are multiple. When multitouch attribution is being used all the marketing channels and touchpoints along the customer journeys get attributed conversion value or revenue. This means that there is one metric or KPI one can use to assess the importance and performance of every channel.
This is quite an important thing because it means marketers can stop looking at CTR’s (Click trough rates), bounce rates and engagement metrics etc. etc.
Combining the attributed conversions with how much was paid for those conversions gives the marketers a ROI. One metric they can use to assess the performance of every channel. This makes optimisiations and budget allocation so much easier.
1. Marketing Investments Are Directed Towards The Best Reciprocating Channels
Attribution modelling statistics bring everything to the plain sight of an advertiser. Clear information about the customer’s first step to his last is well-presented for analysis with the help of attribution modelling. This fosters the efficient allocation of marketing investments towards the areas that perform and reciprocate the best.
Attribution modelling equips a marketer with every bit of information regarding what hooked the customer, his social media interactions, how long it took him to get in touch and then purchase, and what factor drove him towards the decision etc. With all this information, it becomes easier for the marketer to direct the marketing investments towards the best reciprocating channels and campaigns. This saves the budget from being directed towards less effective channels, which also ensures improvement in ROI.
2. Gives A Better Insight Into Customer’s Behaviour
Attribution modelling paves the way for better understanding of customer behaviour. This not only helps in the improvement of products and services in order to meet their demands, but also helps in creating marketing strategies that capture a larger group of audience.
For instance, if the stats show that more customers use your website on their smart phones as compared to desktops, then probably it’s time to switch to a mobile app or have a mobile-friendly website. Also, you can reap greater benefits from offline marketing by simply adding a QR code to your pamphlets or an opt-in to your SMSs. As your target audience likes to reach you through smart phones, scanning a QR code or clicking the link in SMSs, will give them the ease to access your website on their smartphones.
It’s all about interpreting the stats presented by Attribution modelling because they are derived out of customer behaviour. Interpreting and implementing the insights in an efficient manner can result in enhanced ROI.
3. Better Understanding Of Different Marketing Channels Working Together
Multi-channel Attribution Modelling can provide a deeper insight into how the different marketing channels are working together towards the growth of business. Marketing channels like social media, emails, websites, content, ads etc. , are tracked well through attribution modelling and stats are presented so that streamlining them becomes easier.
For examples, it will show you the top-ranking keywords that draw traffic to your website so that you can frequently use them to capture more audience. It also shows which social media platforms interest the target audience and what campaigns drive most engagement. Conversion reports based on different marketing channels also help in deciding and putting more efforts towards the best-performing networks for better conversions.
These benefits are all focused on ROI enhancement, which is the sole purpose of marketing. Boosted ROI results in greater profit margins, which leads a business towards growth, something we all are striving for.
4. Understand marketing attribution and the shortcomings on a high level
Be aware that Facebook and Google prefer to attribute to themselves. They also use very different attribution settings by default. How the data has been collected also plays an important role in the reliability of the attribution modelling. Acknowledging these things are important to trust the modelling going forward.
5. Use multitouch attribution aka. data driven attribution models
Using multitouch attribution abstracts away the need to understand the customer journeys in detail. A multitouch attribution model gives credit to the touch-points during the whole customer journey so there is no need to analyse the different journeys. It is always good though to double-check and verify.
There might be special reasons to using eg. weighted attribution models focusing for example more on customer acquisition if that is the company number one priority.
6. Connect the attributed conversions to the spend
This is important to make it actionable. ATTRIBUTION MODELING IN ITSELF IS NOT ACTIONABLE. Attribution modelling only gives you the contributing value of a touchpoint. To make it more actionable it has to be compared how much was paid for that value. That provides a data driven ROAS or CPA which starts to be actionable.
7. Trust the numbers and act on them
Doing attribution can be expensive and it can be worthwhile to the large advertisers who want to squeeze the most out of their marketing spend.
Once there starts to be numbers, ideally in the form of recommendations on what to increase and decrease its important to start acting on. This is the only way to realise the value. Maybe not necessarily making big changes immediately but starting to experiment and seeing the effect or the lack of it:)
This then paves the way for more data driven decisions and experiments that can lead to growth.
Windsor is a new-age data integration and advertising company that can help you in getting the most out of your marketing efforts with its advanced attribution modelling. Contact us now, if you wish to take actions where they matter the most!
Want to Boost the Performance of Marketing? , book a Free Demo of Windsor’s Marketing Attribution Software, to see how it helps you get the best out of your marketing activities.
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