What Actually Is Marketing AttributionMarketing attribution, in essence, is the process of defining a set of different user actions. These actions are often called “touchpoints” or “events”, and they contribute to a certain degree in producing a desired outcome. By assigning values to each of these actions, we can measure their “attributes”, hence the name. Sounds confusing? Well, let’s try a more practical approach. The end goal or desired outcome of any marketing tactics and initiatives is conversion, where the website visitor turns prospect turns lead finally makes a purchase. So, marketing attribution is the science to determine which sets of actions (touch points) the customer interacted with before finally making that purchase. These actions will involve all interactions with your brand, from engaging your promotional email to clicking a banner advertising. In practice, we put the theory of marketing attribution into use by creating a model, which we deem the “marketing attribution model”. With this model, we can determine how to assign campaign influence.
The Key Benefits Of Marketing AttributionBased on the definition discussed above, the main purpose of the marketing attribution is to uncover everything about your marketing efforts, and use this clearer picture to develop an even better marketing strategy. According to a research report released by iProspect (PDF), implementing a marketing attribution model can generally result in an increase of 15 to 35% in media efficiency and overall ROI. Surely that’s a significant number. Yet, the benefit doesn’t stay there. Here are some other benefits of implementing marketing attribution:
- More Accurate Revenue Decisions
- Better View on The Sales Process
- Find and Solve Problems
- Better Understanding of The Audience
- Understand Customer’s Lifetime Value (LTV)
- Develop Better Marketing Strategy