Understanding Attribution models for Marketing Campaigns
Whatis Attribution Modeling?
Attribution models are those models that help the marketers understand which customer touchpoints helped into
conversion. Attribution models are used to assign credit to touchpoints of customer click to conversion.
Every marketer needs to know which attribution model is helping them in leads. For example, The conversion path
is not that easy now, some consumers take the complicated way of buying the product, and some consumers will
click on your ad and make the purchase. Some consumers visit your site multiple times before purchase and even
come again after a week to purchase. This all depends on your marketing channels. Which attribution modeling is
creating more traffic, which leads to conversion? With every touchpoint of the customer journey into a purchase,
every marketing channel plays an important role.
The Attribution modeling analyzes the analytics and stats and lets the marketer know which channel creates more
sales and distribution of each model into conversion. There are six attribution models. By analyzing each model,
you will understand the ROI for every marketing channel. You have to use the attribution model too for the
fullest to see the stats, compare the performance of each model, and check different factors of the buyer's
purchase cycle. This will help you in finding which model works better for your business than others. You can
also understand the importance of each touchpoint of the customer's journey. Following are the attribution
models:
Last-Click Attribution
Example: Customer finds your website through organic search but doesn't make any purchase
but then see your ad on any social media platform and then make quick sales. This means that 100% credit
goes to this one last interaction attribution model
This attribution model gives all credit to customers' last click or last interaction. The last click of
the customer is responsible for the conversion; any other marketing channels or routes are not included in
the purchase's success than the last one. This one-touch model is called last-click attribution, which
lets you know the previous click of customer lead into a conversion.
First-Click Attribution
This attribution model gives all the credit to the first click of the customer journey into the purchase.
Any other engagement or marketing channel won't be responsible for the conversion other than the
customer's first click on your website or any marketing channel.
Example: Customer finds your website through Instagram, then 100% credit value will go to
Instagram, not to any touchpoints after the first click into the purchase. It doesn't matter if the
customer then clicks on your page display, clicked on some ads. All the credit will be for Instagram in
the first place.
Time Decay Attribution
This attribution model gives all the credit to the closer touchpoints of the customer into a purchase. It
means that the customer clicked on the marketing channel, which is closer in time of sales than the
further back in time like the first click. The most recent click at the time of conversion, the more
credit this touchpoint receives.
Example: This attribution model takes when each touchpoint occurs into consideration. As
when a customer clicks on Facebook ads just right before they purchase, this touchpoint will have more
credit than the first touchpoint.
Linear Attribution
This attribution model distributes the credit to each touchpoint of the customer purchase. As the customer
leads to purchase, each touchpoint gets the same honor for sale.
Example: In this model, credit is split into each touchpoint as the customer finds your
website through a Facebook ad, then he signed up on your email list and then clicked on any of your email
links. Then after a week, he makes the purchase. This means that these three touchpoints are equally
responsible for the sale.
Finding the right attribution model from all the models can be a bit of a task as it is hard to assign credit to
one for all. You have to stick with your business's attribution model, which makes more sense to you and leads
to more conversion.
Marketers need to understand each marketing strategy and the impact of the existing plan and implement it
wisely. You don't have to make the buyer's journey more complex. Impression and click capacity of
buyers/customers are essential for the marketer, which helps them understand which modeling attribution is more
suitable for their business. Analyzing your marketing campaigns and sought which modeling attribution gives more
conversion is the best takeaway.
