Accountability is always an important thing for a lot of marketers, but there has been a renewed investment and interest in piecing the attribution mystery. Beyond any pipeline reporting or engagement metrics, the next-generation leaders are building organizations that run on granular, nuanced, and comprehensive performance metrics. To know more about performance measurement, visit this website.
In fact, according to a recent study conducted by Forbes, at least 90% of company CMOs reported that they are taking good actions to measure the marketing Return on Investment better shortly. The study also found out that companies and organizations that aim to have a higher level of accountability when it comes to marketing achieved notable improvement of the performance.
And in modern companies, the mandate of most marketers is growth. It leads to a critical question: What is the best way of measuring Return on Investment and revenue growth for your brand and businesses? If you want to have a more comprehensive look at marketing attributions, you check out websites like https://get.gaug.es/attribution-marketing-software/ for more details.
In this article, we will share the three most important ways – each more complex and sequentially, but also a lot more accurate – as well as the pros and cons of every method.
Method #1: Single-Touch Attribution
There is an unfounded notion that this attribution is an all-or-nothing method: you either have a very broad understanding of what the marketing touch do to your brand and your company, or you know nothing at all. But there’s a starting point to it, and it requires a little experience.
Single-touch attribution will assign all the value, whether revenue or pipeline, to the first up to the last activity that met the deal. Usually, it means that allocating the agreement to its source, the first person from the company/ It will come down to sales-source or marketing-sourced tracking.
The disadvantage? The “sourced” aspect is too simplistic and may lead to the company’s poor conclusion because one Touchpoint can get the full credit. It is like the very first date between partners, is getting all the credit for having a good marriage. In the marketing industry, this can lead to under investment in critical techniques and nurture that move the hand after the first sale. What is touchpoint marketing? Visit this site to know more
It is relatively easy to implement, and the cost is not that expensive. It also provides a lot of insight into the driving force of the companies that are in the top of the food chain. Another advantage is its direct insight into the cost-per-lead measurements
This method does not account for any influence of succeeding touches, which are very important. It gives too much credit to any activities related to lead generation and undervalues contribution from actual sales as well as nurturing touches. The method also makes it hard to monitor and account for the quality until the deal is closed. Certain deals or long sales cycle can skew it. It also does not work for ABM or account-based marketing because it will only accounts for one touch and one person.
Method #2: Multitouch Attribution (Unweighted)
Usually, it takes a lot of touches from a lot of people to close a good deal. Unweighted Multitouch Attribution is one of the simplest ways to weigh the contribution of every individual touch. Because of this, the attribution method will involve tracking all touch and allocate whatever outcome you are measuring, like the revenue and the pipeline, evenly across the touches. Here is how it works:
Assuming a deal that is worth $100,000 has recently closed. Three people involved in closing the deal: For example, Person number one attended Tradeshow number one and webinar number two. Person number two attended Tradeshow number one only. Person number three sent a direct mail number one and visited the site as a result.
In that scenario using four touch points, each activity that the people involved is credited with at least one-fourth of the whole credit or $25,000 out of the $100,000 deal. Linear attribution will credit $50,000 to the first Tradeshow because there are two touchpoints for Tradeshow number one, $25,000 for webinar number 2, and $25,000 to the direct mail number one.
Unweighted multi touch attribution will allow people to see more effectivity in the performance when it comes to marketing efforts. It is also available outside-the-box to grow into something if you are using a state-of-the-art marketing automation tool. But it will still under-credit or over-credit specific touch points, that is why it can skew most of the marketing investments and report. To know more about the importance of multi touch attribution, visit, https://theblog.adobe.com/the-importance-of-multi-touch-attribution-why-getting-in-the-weeds-helps-for-better-decision-making
It incorporates lead generation as well as nurturing touches. It can be useful for a lot of revenue cycles since it has a lot of touches. It also focuses on the contacts connected with the deal, with opportunity mapping or lead-to-account.
It has too many touch points that can dilute the credits (for example, with 100 touch points, everyone will get 1%). It will over-credit the low-impact touch points and under-credit the one with high-impact touch points.
Method #3: Multitouch Attribution (Weighted)
If you are ready to get ultra-precise about your marketing attribution, all you need to look for is the model of weighted attribution. Weighted multi touch attribution model attempts to nullify the disadvantages of unweighted multi touch attribution. There are different weighted models, and each has various levels of helping marketers answer different questions.
This model will give a lot of credits to the touch point that is closest to the conversion. Assuming that the closer it is to the said conversion, the more marketing influence it will gain within the conversion, the problem with this is that it will never provide a good number of credits to the marketing efforts because it will always be the farthest from the conversion. To know more about time decay attribution, click here.
This model adds a fourth key stage: the closed-won a stage. Within this model, the touch points at the four critical stages will get 22.5% of the total credit. The remaining 10% will be split among the remainder. Although it seems that having a lot of key points can provide you with a better and more accurate presentation of the customer’s journey, it is most appropriate for a lot of marketing companies to do marketing using active sales opportunities.