May 30, 2019 - By Ginna Hall, Senior Content Writer, Nielsen
Marketing has grown increasingly complex. You’re using more channels than ever before to reach, engage and convert your best customers and they expect a relevant, coordinated experience.
Yet many marketers are still using siloed, outdated and inaccurate techniques to measure their efforts. Do you really understand if (or how) your marketing is working?
To optimize experiences and results, you need an actionable understanding of what’s influencing consumers across the entire consumer journey. Knowing which touches are important and how they work together is one benefit of multi-touch attribution.
At its core, multi-touch attribution is a way to allocate credit to the marketing touchpoints along the consumer journey that influenced a lead, conversion or other desired outcome. Advanced approaches can use these insights to plan and optimize future campaigns more efficiently and effectively, as well as those already in flight.
As a CMO, VP or marketing director, you may already know adopting a multi-touch attribution approach is essential to remain competitive. It’s the only way to know what’s working and what’s not and, more importantly, where you should be spending more (or less).
But it’s easy to come up with reasons for not upgrading your measurement practices – it’s disruptive, it’s expensive, it’s hard, and so on. Many companies have one of four common excuses for using poor measurement practices:
Here’s how you can overcome each of these excuses and get the insights you need to be successful.
We get it. The martech ecosystem now includes thousands of solutions, and the average company invests in 16 separate marketing technology platforms. The problem is that when you use multiple systems, you see multiple reports from each. Without a single system of record, you can never get a comprehensive view.
Multi-touch attribution actually reduces fragmentation. This approach seamlessly integrates first and third-party data to establish a single source of truth. These solutions collect, consolidate and normalize performance data into common measures and taxonomy.
It may sound like just another technology to manage. In reality, multi-touch attribution is the centerpiece around which all other systems operate. This reveals new insights, de-duplicates conversions, uncovers hidden optimization opportunities, and allows marketers to act precisely and quickly.
You may know which marketing emails your customers and prospects open, which display ads they click on, and which marketing assets they download. This form of measurement isn’t attribution. Seeing a typical path doesn’t reveal the value of each touchpoint, and understanding the path is not actionable.
You need multi-touch attribution to understand value. Whether you use a more simplistic, rules-based model (that relies on humans to define the rules of how credit is allocated) or a more sophisticated algorithmic model (that uses objective, statistical modeling and machine-learning techniques), both of these models will provide you with insight you didn’t have before.
Yes, it may temporarily. But consider how expensive it is to stick with the status quo. This is because many of you are leaving money on the table by using default measurement approaches such as “last touch.”
Last touch is easy to understand and implement. But last touch attribution is not just inaccurate or flawed, it’s dangerous. Last touch assigns 100% of the conversion credit to the last touchpoint. It also incentivizes everyone in your ecosystem to insert “their” touchpoint into the last spot of the journey. They focus on “How can I win more of these?” instead of “what’s the best thing to do?”
With multi-touch attribution, you know exactly which marketing channels and tactics are performing well. You can direct your team and external vendors to target the right audiences and buy the most effective inventory, rather than what will get them the most last clicks.
Marketing initiatives are traditionally seen as an expense, but don’t let short-term thinking keep you from long-term gain. Multi-touch attribution creates a predictable ROI model so you can estimate your return in advance of implementation. Your investment will contribute to revenue and significantly surpass the current approach.
According to Gartner, the typical outcome of implementing attribution is a 20-30% gain in media efficiency and corresponding increases in ROI.
For example, if you assume a conservative 15% lift in conversions at a company with $50M in revenue, that’s $7.5M in additional revenue. If you subtract the estimated cost of implementation of $300K, that’s $72M net gain—an ROI of 2400%. Moving to advanced attribution will pay for itself.
It’s no longer enough to focus on individual channel performance and last click attribution. Without multi-touch attribution, each system is measuring in a silo. Your results are duplicated and you lack the insight you need to avoid spending on marketing activities that are simply not delivering results.
Marketing effectiveness is much more than just measuring clicks and opens, it’s about measuring the impact on pipeline and revenue. It’s about understanding what works best for each target audience.
When you can do this, you can make important, strategic investments for your company that optimize consumer experiences and business results. Stop making excuses for poor measurement practices and prepare to move into the new era of marketing effectiveness.
Download our ebook to learn 5 Game-Changing Facts that Prove the Value of Multi-Touch Attribution.