Sometimes, it can be difficult to assess the effectiveness of numerous individual marketing channels. Brands can leverage modern technology to try to track data and use metrics to their advantage, but you need a plan for synthesizing and using that data usefully. Enter the multitouch attribution model. Models like these make it easier for businesses to determine how valuable the various marketing strategies in their sales funnels are.
How does data help brands understand customers?
There are lots of ways businesses can use data to understand customers. Relying on a multitouch attribution model may allow you to collect a range of data, but here’s what you should prioritize if you want to improve your knowledge when it comes to your customer base:
- Data quality is more important than data quantity
- You should leverage every piece of data available to you
- Don’t make unnecessary assumptions
- Prioritize real-time information
These steps help brands use data to understand customers.
What Is Multitouch Attribution?
At its core, multitouch attribution is a marketing effectiveness measurement technique. If you’ve ever wondered whether your marketing is worth the time and effort, multitouch attribution could help shed some light on the topic.
- Multitouch attribution considers all of the touchpoints in the customer journey
- It’s more sophisticated than traditional rule-based attribution approaches
These models assign fractional credit to different touchpoints. This way, marketers can more easily determine which channels have the most influence on sales.
What Are the Benefits?
Improved visibility into the customer journey
If you don’t understand the journey your customers take from learning about your brand to purchasing from it, a multitouch attribution model can help.
When marketers use data-driven marketing, it’s easier to understand where consumers are at. Then, it’s easier to customize messaging to meet them there rather than throwing out marketing messages and going they stick.
Customizable to meet your needs
There are plenty of these models to go around– and even if they aren’t quite what you’re looking for, you can create your own model to suit your brand’s unique needs.
Determine which marketing tactics are under- and overvalued
It’s important to look at each component of a marketing campaign to determine what is most effective and where your money is best spent. This also helps get to see which tactics are actually proving valuable to your team.
The Four Standard Multitouch Attribution Models
- Linear attribution: Generally considered the simplest form of multitouch attribution; assigns conversion credit evenly across all customer journey touchpoints
- Time decay: Touchpoints that are close to conversion time-wise are granted more credit.
- U-shaped or position-based: Puts most weight on the first and last touchpoints (they get 40% credit each); splits remaining 20% of credit between middle touchpoints; most people consider this a hybrid between first- and last-touch attribution
- W-shaped: Credits first and final touch at 30% each; also credits the point where a visitor becomes a lead at 30%. The remaining 10% is divided between any other touchpoints
In some settings, advanced, algorithmic multi-touch models are used. These demand their own deep dive.
You can also create your own model
It’s possible to create your own multitouch attribution model from scratch or using one of the four listed above as a framework.
When brands create their own multitouch attribution models, it gives them the freedom to:
- Determine the weight and significance of each touchpoint using considerations unique to their business
- Account for idiosyncrasies in the customer journey so that they can optimize their ad budget allocations
Helios Will Help Your Brand Leverage the Multitouch Attribution Model
Our suite of services helps our clients recognize opportunities for simplification and improvement. Reach out to us today. We’re happy to talk to you about the multitouch attribution model and how your brand can leverage data to improve efficiency and revenue.