Please enjoy this excerpt on the important topic of response attribution from the recently released 2013 Digital Marketer Report.
One of the problems marketers face with today’s mass, digital, direct, mobile, social world is determining the value of each customer touch. Giving revenue credit to the last touch is simple, but hardly accurate — and everyone knows it. CMOs know that really understanding the contribution of each marketing effort would mean that they would be able to allocate their marketing spend for maximum impact and return.
So where to start? As organizations begin to tackle the problem, they often take two approaches. The first is to give credit to every marketing campaign within a time window prior to a purchase. If a customer has received a catalog and five emails and has responded to a Facebook offer viewed on a mobile device, all within 30 days of finally purchasing in-store, each channel gets full credit for the sale. This double, triple, quadruple counting makes everyone happy and reflects the reality that the path to purchase has many elements, but it doesn’t really help the CMO decide the right way to plan the marketing strategy.
The second approach applies a little math, while using the same time window. With this method, proportional credit is given to each channel and is determined by a set of business rules, whose shape can vary. For example, credit may be determined by:
- The proportion of sales each channel contributed in the prior year
- The number of touch-points before purchase
- The percentage each channel represents of marketing spend
- The proximity to the actual purchase date
The reality is that both of these approaches are good first steps to recognizing the complex nature of allocating response, but there are more data-driven approaches that will give clear, reliable answers and help the CMO make better spending decisions.
Download the report to read more on this topic and learn about the latest trends, benchmarks and digital marketing tips.