This is the first part of three part series on ‘Omnichannel Attribution Modelling’.
The series will cover:
- Attribution – Definitions / User Journeys
- Implementation – Type of Attributions / How they are tracked – 1. Multi Channel Tracking / 2. Cross Device Tracking / 3. Offline – Online Tracking
- Attribution and Attribution Roadmap – Industry Examples
Let’s cover some basic pre-requisites that you should know already before going deeper into attribution modelling.
Businesses usually work towards a main goal termed as ‘conversion’. Conversion means the user has now converted into a customer. All the business activities can be classified into pre or post conversion categories. The pre-conversion activities are usually focused on driving the users towards the conversion and on other hand the post-conversion activities are focused on keeping the user happy as a customer.
Attributions are basically a tool to answer two business questions, How do people decide to buy and how do they actually buy. In this regard, we can bifurcate the Pre-Conversion activities according to the user’s journey towards the conversion:
AWARENESS – The user firstly gets to somehow know about the businesses existence. This is our reach. Usually marketing activities help us announce our existence as a product or a service provider. The response to our AWARENESS based marketing activity is measured in ‘How many people know about us as a response to your ‘activity’.’
FAMILIARITY – Next logical phase in the user journey is when people start to get interested in our products and spend enough time to consider using using them. The main goal of this activity is to let people know about the key offerings of the product and then thinking of trying it.
CONSIDERATION – By this time, they are curious how they can benefit from our services/product. As the first contact point they give their contact information and start communicating with our business.
INTENT – People closest to converting are those who now want to do the transaction and do business with us. We identify people who are interested in our offering (what in particular).
Pre-Sales KPIs can be buckets under these four major groups. They help in making the user journey smoother and faster towards a SALE.
The businesses now-a-days use various online and offline marketing methods to drive in users and generate sales. One user interacts with multiple touch-points before making a purchase. Thus it gets hard to calculate the ROI on the investment on any of these marketing channels. This is the problem of attribution.
The digital Touch-points have increased!
In 2002, the user would just go to the shop and make purchase. By 2012 with the abundance of multiple information channels, the user has many avenues to interact with your business. The latest trend is to provide a cohesive experience to the user despite them interacting through multiple channels… this presents challenges to understand what actually made the user to actually convert to a customer.
Half of our budgets spent on the marketing channels goes to dump, the problem is we don’t know which half because Marketing Channels play a more intricate role in the customer journey which is not easy to judge if you do not have the right tracking and the right knowledge about how to understand the user channel and patterns across multiple visits. So Attribution helps us understand which ones of them are working best for our business.
There are three types of Attributions:
Multi Channel Attribution: It is the most popular attribution and when marketers talk about attribution they are generally referring to this attribution. In case of ‘multi channel attribution’ we determine the impact of multiple digital marketing channels (paid search, organic search, email marketing, direct traffic, referral traffic, display advertising etc) on conversions. We try to understand how different digital channels work together to create conversions and how the credit for conversions should be distributed among various channels.
Cross Device Attribution to Synchronize user experience across devices: We determine the impact of multiple devices (Desktop, Tablets, Smart Phones, Smart TVs etc) on conversions. We try to understand how different devices work together to create conversions and how the credit for conversions should be distributed among different devices
Offline-Online Attribution: Here we determine the impact of digital marketing channels on offline marketing channels and vice versa. We try to understand how online & offline campaigns work together to create conversions and how credit for conversions should distribute among different online & offline marketing channels.
However we will be talking about a fourth type of attribution model which should be as close to the actual user journey as possible
‘Real World Attribution Model’
The real world attribution is the hybrid of online-offline, multi device and multi channel attributions. It takes into account the back and forth activities of customers between multiple devices both online and offline while distributing credit for conversions. Because of that property, the real world attribution model is much more complex and difficult to develop than any existing attribution model. But at that same time it is the only true attribution model. We will talk about it in great detail in this series, but first let’s implement the above three in order to reach to a real world scenario.
NEXT – Omnichannel Implementation –>