Marketing Attribution — The challenge of Omnichannel Marketing

Back in 2003, when I used to work for Thomas Cook, the prime marketing channels were tv, print, radio, and outdoor media. To know the impact and share of a specific channel was comparatively uncomplicated. I recollect my early start-up days in 2006, when digital marketing entered the landscape, reckoning the influence of search engine adwords had come into the picture. Post-2009, with the rise of the digital age, I have seen a massive difference in marketing strategy, wherein each channel wanted the credibility of a conversion.

Omnichannel Marketing :

In today’s world, to ensure a seamless customer experience, marketers have to reach the customer at all possible touchpoints ( retail outlet, social media, website, app, and so on ) in a consistent and complementary way. For instance, I was exposed to an ad of shoe brand on Instagram as well as Facebook, thereafter I went on YouTube where I saw the ad, afterward while driving heard its radio campaign, subsequently also saw a billboard while strolling in a mall; curious me, I searched it on google and then finally bought it on an e-commerce platform. Now, the pertinent question is which channel should be credited for my conversion? And when I make a budget how should it be allocated?

With Omnichannel marketing strategy, marketing attribution has never been so important before. Most of the publishers, while presenting the ROI, tend to attribute 100% of revenue to their channel. For an example, if the total revenue generated is Rs 100 and the amount spent on 3 marketing channels is Rs 10 each, in isolation cost of sale for each channel works out to be 10%, however cumulative it works out to be 30%. But is this the correct way to calculate ROI?

Attribution Models :

Research shows that marketers’ top priorities include optimizing the marketing mix for the best return and modernizing their tools and technologies. These teams are also revamping their marketing metrics for a new era. However, one size doesn’t fit all when it comes to marketing attribution. There are multiple attribution models which various marketers use today. For example first touch, last touch, linear, weighted, time decay, position-based, algorithmic/artificial intelligence, conceptual or case-based, full, exclusive, and multi-touch attribution model.

Selecting an attribution model

Attribution brings a myriad of benefits including optimized marketing spend, improved personalization, improved product development, optimized creative, and higher marketing ROI. Nevertheless, the selection of the attribution model can be different for each industry. In the process, we need to understand who is Direct Converter, which channel Converts & Assists equally while also figuring out about Assists Channels. There will be also instances of Interaction override.

For example for an E-commerce site might not need to consider offline conversion while retail brands would need to consider both online & offline conversions. There are multiple software readily available that helps to track the attribution model. There is also a possibility that there may be more than one model that is needed to answer the questions. While choosing the model, one needs to keep in mind like Correlation-Based Bias, In-Market Bias, Cheap Inventory Bias and so on.

Importance of implementation of Attribution model:

Attribution challenge is going to stay as companies are more adapting to digital transformation. As consumers explore new channels and companies adopt advancing marketing technologies, attribution becomes crucial to centering your entire marketing organization around a common goal of revenue generation. Based on my experience, I would recommend the below steps :

1) Educate stakeholders: Explain how the customer journey has evolved with multiple touchpoints and challenges in calculating ROI. This is important to explain to internal stakeholders to get their buy-in.

2) Bring agencies on board: Discuss and agree on the attribution model and kpis with agencies before the campaign starts.

3) Attribution Software: If possible, use a single attribution software to ensure data consistency. Using multiple data sources will only complicate the attribution model.

4) Evolve with each campaign: There will be learnings in each campaign, make sure to document them and use them for future campaigns.

The omnichannel marketing is going to evolve more in the coming days and hence it is important to understand and implement an attribution model best suited for your business. I hope that you will find the above insights from my experience helpful.

Please connect in case you need any more insights.