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Marketing attribution is the name given to the analysis of marketing strategies in order to determine their direct contributions to sales or conversions. Attribution marketing tactics help to improve marketing efficacy for any business. These data science tasks help business owners make better marketing decisions based off what works best to increase revenue. If you are a business owner without formal marketing training, the concept may be entirely new to you. Find out the attribution models marketing fundamentals you need to know below to employ these effective data science tactics for your business’s benefit.
Customer Centered
Attributions marketing models are customer centered. This is vastly different from other marketing models, like marketing mix modeling, which analyze aggregate data in order to determine the contributions of various marketing strategies on sales revenue. Customer centered statistical analyses are better suited to digital marketing campaigns and proximity marketing campaigns. This is why attribution models marketing strategies have become so popular in recent years. Modern business models are often customer-centered. If you want to use customer centered marketing analysis techniques, this is definitely something you want to know about attribution marketing analyses.
Single Touch
Single touch attribution models are just one type of attribution marketing models. Within the single touch model, there are several additional subsets of attribution that can be used. These single touch models include first touch attribution and last touch attribution. Single touch attribution models calculate performance based on one point of contact, be it the first contact or last contact, within a given customer sales process. Using these models, revenue contributions are attributed to just one part of the customers’ sales journey. Other parts of the sales process are not accounted for at all. Clearly, this can have its downsides. However, single touch models are the most commonly used attribution models marketing departments employ. If you want a simple attributions model to use for your business marketing endeavors, consider single touch models.
Multi-Touch
Multiple touch attribution models consider all marketing touchpoints that a customer engages with prior to making a purchase. This is a much more comprehensive, in-depth approach to marketing analytics. Ultimately, that can make it much more effective at deriving accurate, meaningful insight to improve business outcomes. As with single touch attribution, there are several different multi-touch attribution models a business owner can use to gain accurate insight into marketing strategies’ effectiveness. Multi channel attribution models include last interaction models, also called last click attribution. In addition, they include last non-direct click attribution, last adwords click attribution, first interaction/first click attribution, linear attribution, time decay attribution and position based attribution models. A business owner should conduct research on all these different multiple channel attribution models should they choose to employ a comprehensive attribution marketing strategy.
Online Offline
Online offline attribution models are used to analyze both the effects digital marketing tactics have on offline marketing strategies, and the effects offline marketing tactics have on digital marketing strategies. These types of attribution marketing tactics help business owners figure out how the two types of marketing work together to produce results for the business. When a business owner understands the ways a variety of inbound vs outbound marketing tactics work together to drive revenue, they can make better marketing decisions to utilize the two marketing mediums in tandem. That will ultimately make for a more effective marketing plan overall. In addition to using attribution models to determine effectiveness of a single strategy on a customer sale, you can also use these marketing models to determine the effects multiple strategies have on one another. This is an important attribution marketing models feature that all owners should utilize for the benefit of their business.
Acquisition Channels
When it comes time to deploy attribution models marketing in your business, you need to consider the particular marketing acquisition channels that you are using to produce conversions. The types of marketing channels you are using to drive conversions will determine what types of attribution marketing models you should use to derive insight. Single touch marketing models are a much more effective attribution analysis strategy for offline marketing channels, like robo calling, and physical marketing materials, like flyers and ad mailers. Multi touch attribution models, on the other hand, are a more comprehensive analysis that makes it easier to derive meaningful insight from digital marketing channels such as organic and paid search, email marketing, referral and direct traffic and digital advertising displays. Business owners should make sure to consider what types of marketing channels they would like to analyze before selecting a preferred attribution marketing model to conduct marketing analysis.
Small business owners often lack the professional marketing background and expertise to understand the nuances of marketing analytics. Thankfully, there are posts like these to help you understand attribution marketing models and their importance in driving results for a business. If you want to start using attribution models marketing tactics to increase business revenue, familiarize yourself with the attribution marketing basics detailed above. These attributions models fundamentals will help you better understand the most important attribution models, like single touch attribution, multi touch attribution, online offline attribution models and more. Further, it will help you see the value in a customer centered marketing analysis. And, it will help business owners understand the importance of choosing the right attribution model for the particular marketing acquisition channels you are using to produce conversions and increase revenue. Use this post as a guide to marketing attribution models to get you started. Then, do a bit more research to determine which marketing attribution model is best for your business needs.
