It’s never been more important to understand which marketing channels and tactics are driving leads and sales for your business, to be sure every dollar of your marketing spend counts. The value of attribution isn’t really in question: most marketers know that understanding which marketing channels and tactics drive website conversions is fundamental. However, it’s worth discussing some of the practical benefits of getting your attribution program right. Understanding how and where your prospects are best influenced can reduce costs, maximize your ROI, and help to avoid waste — all of which are critical in this challenging moment.
Cut Costs on Ineffective Marketing
Savvy marketers are always looking for ways to economize. A dollar saved on an ineffective placement is a dollar that can be spent elsewhere to drive results. However, without a comprehensive and accurately tuned attribution model, it’s difficult to tell which dollars are being spent to drive conversions and which are not. Understanding how different media tactics influence the path to conversion is critical.
Reducing spend on high-cost-per-conversion tactics and reallocating those dollars to more impactful channels can actually help to reduce your overall spend while maintaining your results. If your marketing spend has hit a point of diminishing returns or if your results have plateaued, identifying low-performing channels is a great way to right-size your costs without losing the gains you’ve made and to conserve resources for new tactics and tools.
Maximize Marketing ROI
Ultimately, most marketing will be judged on the basis of ROI. Understanding which channels are most influential provides a guide for where you can spend incremental dollars to boost results. Knowing which levers to pull to achieve desired results is critical to the long-term health of your organization.
Moreover, attribution models can help validate spend on channels and tactics that drive brand awareness and consideration, as long as these effectively guide a prospective customer along the path to purchase. A well-tuned attribution model can determine if these early consumer interactions lead to a subsequent purchase, often credited to a lower-funnel channel such as branded paid search or direct navigation. As we cover in our Pitfalls of Attribution post, often these top-of the-funnel channels see funding reduced or eliminated, leading to reduced visits from the lower-funnel channels, creating a vicious cycle.
Understand and Optimize Prospective Customer Interactions
Digital marketing grows more multichannel by the day. We reach customers across digital display, paid search, organic social, email, and more. One of the primary benefits of attribution modeling is that it allows us to begin to visualize how prospects interact with these messages and move through the funnel. However, in a world with a rapidly expanding number of platforms, channels, and tools, a strong attribution model can also reveal how these channels interact to impact conversion.
Once a customer has visited your site and been retargeted with ads on Google’s display network, is it more advantageous to follow-up with an Instagram campaign or a paid search placement? Your attribution model can reveal not just how customers interact with your messages and touchpoints but also the interplay between those various platforms. This will help you build the most efficient and effective path to purchase for the maximum number of prospects
The more intimate your knowledge of customers’ behavior, the better able you are to serve them. A well-structured attribution model will allow you to construct path-to-purchase journeys, which in turn help you tailor all of your marketing efforts to the kind of customers you need. Understanding these needs, in turn, ensures that you are able to meet your customers at the points where they are most likely to be influenced, allowing you to build a stronger connection, boost brand loyalty, and increase customer lifetime value.
Start Now to Achieve both Short- and Long-Term Benefits
The task of launching a marketing attribution program that is both actionable and comprehensive is daunting. In fact, there are obstacles, such as online privacy and inconsistent tracking methods across on- and off-line media, that make perfect omni-channel attribution unattainable.
However, the journey towards perfect attribution can yield tremendous business value at each incremental step. At Empirical Path, we aim to help marketers realize real cost savings that they can prove with trusted, reliable data. If you need help, contact us today to speak to a Marketing Attribution expert about how we can help you navigate a path toward both short- and long-term measurable ROI, in a way that works for your business.
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