Attribution Modeling and Better Marketing for Your Business
Attribution modeling is an integral part of marketing platforms for many small businesses and can help make a positive change in the way you run your company. If you have ever wondered which of your marketing campaigns are leading to the highest number of sales, using an attribution model as part of your Google Analytics tools would work well for you. It collects data to figure out the values of each individual digital channel that played a role in getting a customer to make a purchase.
Here is a breakdown of what an attribution model is and what parts of your business it will affect the most.
Understanding attribution models
According to Google, an attribution model is defined as rules or the rule which “determines how credit for sales and conversions is assigned to touchpoints in conversion[s].” A conversion path consists of interactions, such as clicks on links from a website, that leads to a transaction. Examples of channels that customers regularly use are: searches using specific keywords, both organic and paid; Facebook, Twitter, and other social networks; email marketing campaigns; referral websites, and offline marketing campaigns containing your website’s URL.
You might be wasting precious resources and employee hours on marketing that simply isn’t working, such as an outdated mailing campaign, when you should be concentrating on getting the word out through your social networks. Attribution modeling for your business can show you where to concentrate your efforts, and you’ll know which digital channels are leading to the most sales and which channels might need a boost. Online marketing is more complex than just knowing which touchpoint finally culminated in the sale, called the “last click.” Attribution models study the customer’s journey getting to that point, giving you an all-encompassing view on how people are interacting with your company.
Budgeting can be one of the trickiest aspects of the entrepreneur’s company, especially if finances are tight. Using the proper attribution model can help you balance your budget by helping you evaluate how much to invest in paid advertising. Perhaps you’re spending a large chunk of your annual budget on paid searches and you want to know if you’re getting the return on investment you’re expecting. Perhaps these paid searches bring a lot of traffic to your website, but aren’t what’s closing the deal for your customers. An attribution model can help you decide whether or not to continue investing in paid advertising. Once you find out how you’re attracting most of your customers and making the most sales, you can set some money aside in your budget for the following year for a new email marketing campaign or complete website revamp.
Once you have started using an attribution model and it begins to affect your marketing strategy, you can incorporate the data you’ve acquired into your business reports. It will be effective in understanding of what parts of your business are the most useful in building a solid customer base and making the most profit. Data from an attribution model will make your annual reports more robust and contribute to the overall picture of how your business is faring.
Google Analytics provides several different attribution models to use based on your business’s needs and which conversions you wish to focus on. You also have the option to create a custom model, tailoring it to your business. Attribution modeling will lead to a better understanding of your customers and how they interact with your business, helping you adapt to their needs, concentrate your efforts, and ultimately acquire new business.