Which attribution model is right for my business?
What is attribution modeling? In a nutshell, attribution modeling is about what is and isn’t working for your company’s digital marketing efforts. Most marketers use several possible conversion paths to reach their marketing goals, and accurate measurement makes all the difference when you need to track your sales and their origins. Since most customer interactions involve several stages, it is important to ask yourself, “Which method of attribution modeling is right for my business?”
Choosing a model that is built right into your Google AdWords and Analytics accounts makes it easier to gauge the impact of your overall marketing goals. Additionally, knowing more about each type of attribution modeling is important.
1. First touch: A quick, easy marketing attribution modeling option, first touch lets you use the first customer interaction as your basis. However, keep in mind that the first interaction doesn’t always give you the full picture, hence the other ten methods.
2. Lead conversion touch model: With this marketing attribution modeling option, you will base your measurements on the first data-producing interaction that leads to a conversion. This method is a good measure of marketing channel effectiveness.
3. Last touch attribution: Also known as opportunity creation touch attribution, this way of measuring sales goes by the last customer interaction. This method takes less time measuring attribution, which frees up a lot of marketing time.
4. Last non-direct touch: Do you have leads that don’t fit nicely into one category? Marketing attribution using this method can help you measure these leads more effectively.
5. Last [marketing channel] touch attribution: When you use this rapidly-growing method, you can use Google AdWords or Facebook Insights to track your conversions from the marketing point of your choice. However, be careful when aggregating your data with this method as you could count the same interaction too many times.
6. Linear attribution: This method allows for credit for the sale to be given for each phase of the whole interaction. The downside here is that it is harder to gauge the total impact of each stage.
7. Time decay model:This method uses the points closest to the actual sales conversion for measurement. There are limits in what this method can measure, especially points at the top of the sales funnel that happen to be further from the conversion.
8. U-shaped attribution: Often called position-based attribution, this model keeps track of those anonymous first touches and lead conversions. If you’re most in need of a method that isn’t necessary beyond the lead stage, keep this in mind.
9. W-shaped: The emphasis is on the first, lead conversion and opportunity creation touches, giving you a pretty balanced look at your efforts. By figuring out which touches bring about the most contact, you can organize your marketing strategy accordingly and make needed changes with less hassle.
10. Full-path: Also called Z-shaped attribution, full-path uses all the stages found in the W model and adds a customer close stage. At its best, it allows you to focus most of your marketing on existing leads, a possibility that many marketers find essential.
11. Custom or algorithmic models: If your marketing requirements are highly specialized or just hard to fit into other attribution models, this is likely what you need. They are complicated to implement, but can offer rewarding results if you are willing to put them to fullest use.
The attribution needs of your business will depend on both your marketing goals and KPIs. It can often seem very difficult to navigate all of the attribution models and determine the best choice all on your own. Contact us at Lever Interactive, and we can help you find the best model for your company’s needs.