Marketing attribution: the ultimate guide
Article topics
- What is marketing attribution?
- Why is marketing attribution so important?
- Are there any downsides to marketing attribution?
- What is an attribution model?
- How to measure your marketing attribution
- Top tips for making the most out of marketing attribution
When you run an eCommerce website, it’s highly likely that you’ll use several different marketing channels to encourage customers to make a purchase.
However, do you know which marketing channels do the most heavy lifting when it comes to getting sales?
Marketing attribution is an extremely helpful way of finding out which channels are engaging customers and driving conversions.
In this article we’ll talk about the pros and cons of marketing attribution, how to choose the right model to suit your needs, and how to get started with setting up attribution for your online store.
What is marketing attribution?
Marketing attribution is the process of identifying the marketing channels (or touchpoints) which lead to conversions in your eCommerce store.
(By conversion, we mean any desired action you want your customers to take, whether that’s signing up to your email newsletter, enrolling on a webinar, or buying a product.)
For example, let’s say a customer finds out about you through a social media post. They then sign up for your newsletter. A few days later, they click on a Google search ad and buy your product.
In this scenario, they have engaged with you through three different touchpoints: social media, your email newsletter, and Google Ads. Marketing attribution lets you pinpoint these channels, as well as which channel did most of the work.
Why is marketing attribution so important?
The main reason why marketing attribution is a must in eCommerce is that it allows you to see which marketing channels are leading to sales and conversions. That way, you can focus your marketing budget on your most effective channels and ensure you’re achieving your business goals.
Another reason why marketing attribution is important is that it allows you to track the entire customer journey through the sales funnel and the ways customers communicate with your business before they buy.
This allows you to see where customers are potentially falling out of the sales funnel, and how you can keep them engaged.
Are there any downsides to marketing attribution?
While marketing attribution is useful, it does have its limitations.
It can tell you that a particular marketing channel has been successful in bringing clicks and conversions to your website, but it can’t tell you why it has been successful.
Another disadvantage is that marketing attribution only counts touchpoints that lead to a click. Let’s say a customer sees a display ad for your eCommerce store. They don’t directly click on the ad, but it inspires them to visit and place an order.
In this situation, the ad wouldn’t count in any marketing attribution reports.
The best way to mitigate both of these disadvantages is to ask customers for feedback. For example, asking them how they heard of your eCommerce store.
What is an attribution model?
Image source: https://www.whatconverts.com/blog/attribution-modeling/
It’s estimated that a customer engages with between six and eight different touchpoints before buying a product.
Attribution models show which of these touchpoints are the most effective, meaning you can see at a glance which marketing channels you should prioritise.
There are two different types of attribution model you can use: single-touch and multi-touch.
Single-touch attribution model
A single-touch attribution model assigns all the credit for a conversion to a single touchpoint in the customer journey.
The key advantage of single-touch attribution models is that they’re easy to use and understand. According to Banzai, single-touch attribution models account for 55% of all attribution models used. However, they can be overly simplistic as they may ignore critical marketing channels that contributed towards a conversion.
There are two types of single-touch attribution models:
- First-touch: First-touch attribution assigns 100% of the credit to the first marketing channel a customer interacted with
- Last-touch: Last-touch attribution assigns 100% of the credit to the last marketing channel a customer interacted with before conversion
Multi-touch attribution model
A multi-touch attribution model assigns varying levels of credit to multiple touchpoints in the customer journey.
The benefit of multi-touch attribution models is that they take all marketing channels into account. However, they can be harder to get started with.
There are five types of multi-touch attribution models:
- Linear: Linear attribution assigns equal credit across all marketing channels
- Time-decay: Time-decay attribution gives the most credit to the last marketing channel a customer interacted with before conversion
- U-shaped: U-shaped attribution gives the most credit to the first and last marketing channels (typically 40% each, with the remaining 20% shared between the other channels)
- W-shaped: W-shaped attribution gives the most credit to the first and last marketing channels, as well as the marketing channel that resulted in lead creation. For example, signing up for a webinar, or downloading a lead magnet (typically 30% each, with the remaining 10% shared between the other channels)
- Data-driven: Data-driven attribution uses existing marketing data and machine learning to distribute credit based on how marketing channels contributed towards a conversion
Which attribution model should you use?
It depends on a variety of factors including:
- Your goals as a business: For example, if your aim is to increase customer acquisition, you may want to focus on early interactions so you can see which marketing channels are making customers aware of you
- The length of your sales cycle: If your sales cycle is short, you will see more benefit from focusing on touchpoints closer to conversion. If your sales cycle is long, it’s better to take a more inclusive approach
- Your budget and skill level: Single-touch attribution models are easier and less expensive to implement than multi-touch ones
- The number of marketing channels you use: If you have a simple marketing strategy with minimal marketing channels to monitor, single-touch attribution may be enough. If you use an omnichannel approach, multi-touch attribution is more insightful
If none of the attribution models listed above suit your needs, you can create your own. You can choose which channels you want to prioritise, and how much credit you want to assign to each channel.
It may be that the attribution model you use changes with time. In our experience, many eCommerce stores start with single-touch attribution as it’s easy to get started with, and move to a multi-touch attribution model later on.
How to measure your marketing attribution
If you’re just getting started with marketing attribution, one of the easiest and fastest ways to get started is Google Analytics.
Google Analytics offers a basic attribution report, which you can connect your Google Ads account to for additional insight.
However, there are disadvantages. This report only takes Google data into consideration, and only offers two attribution models: Last click and data-driven.
Some customer relationship management (CRM) systems offer attribution reporting.
For example, HubSpot pulls the data from your contact database to determine which touchpoints are most influential. Your team must make sure that your CRM platform is up to date in order to make the most out of this type of reporting.
Another option is to invest in a specialist attribution platform. These platforms pull data from a wide range of sources, and clean it to make sure it’s accurate and that you’re not counting the same information twice.
Top tips for making the most out of marketing attribution
One of the best ways to optimise your marketing attribution efforts is to pick the best model and timeframe for your needs. However, there are other things you can do to make sure your marketing attribution delivers the right results.
Here are our six top tips for ensuring your marketing attribution delivers the right results.
1. Implement UTM parameters
Most marketing attribution platforms are able to determine the source of a specific conversion using cookies, first-party data, and click IDs, but there are some circumstances where they are unable to do this.
For example, if someone’s browser is set up to block third-party cookies, this can cause issues.
Image source: https://www.mageplaza.com/blog/utm-parameters-google-analytics-for-magento.html
One of the easiest ways to ensure that all marketing touchpoints are logged correctly is by using Urchin Tracking Module (UTM) parameters. A UTM parameter is a piece of text added to the end of a URL which provides additional context, including the source of the conversion, the marketing channel used, and the specific campaign.
Many marketing tools you use automatically add UTM parameters for you. You can also add them manually using tools like UTM Builder.
We recommend setting up a spreadsheet with all the UTM parameters you’ve created so you can keep track of them and ensure a consistent naming convention.
As well as UTM parameters, implement other methods of tracking conversions to ensure touchpoints get the credit they deserve. For example, social media platforms like Facebook and LinkedIn use pixels to track ad engagement and identify on-site conversions.
2. Think about timeframes
As well as choosing which attribution model you want to use, you need to think about the timeframes (or attribution windows) you want to assign to specific touchpoints.
This determines whether a marketing channel receives credit for a conversion. For example, if you have a 7-day attribution window in place, and someone makes a purchase after clicking on an ad within 7 days, the ad is credited.
Timeframes can vary between 1 and 90 days. For example, the default in Google Ads is 30 days, but you can adjust it to make it shorter or longer.
The right timeframe for your eCommerce business depends on what you’re selling and the circumstances you’re selling it in. For example, if you’re selling something expensive with a long sales cycle, you may want a longer timeframe.
However if you’re running a flash sale, you may want a shorter timeframe so you can see which marketing channels are most effective in the short-term.
3. Consider online and offline attribution
If you operate an omnichannel marketing strategy, run a brick-and-mortar store, or use out-of-home (OOH) advertising, you need to add offline marketing channels into the mix.
For example, it may be that a customer sees a billboard advertising your business and goes to your website to buy. With standard marketing attribution, this billboard would not receive credit.
The good news is that there are ways to link up your online and offline attribution, including using:
- Location-specific QR codes and URLs
- Unique discount codes
- Unique virtual phone numbers
- Digital OOH advertising, which uses device-ID passback to provide anonymous device IDs of people who see your ads
You can also ask customers for their email address when they purchase to connect an offline purchase with an online account.
As a fallback, you can directly ask customers where they heard of your business and what encouraged them to you.
4. Make sure everything is connected and quantified
The more data you have available, the more accurate and trustworthy your marketing attribution will be.
This is one of the reasons why investing in a dedicated marketing attribution platform can be worthwhile, as these platforms pull data from several different sources. Conversely, some platforms, like Google Analytics and Meta Ads attribution, only count their own specific touchpoints.
5. Segregate your attribution
Cohort analysis can give you the edge when it comes to marketing attribution. This is when you group users based on shared traits and track their engagement over time. You can use cohort analysis to track specific user behaviour and see how different target audiences respond to your marketing.
For example, you can track customers based on what their first touchpoint was or when they converted to see how the user journey differs. Alternatively, you can track customers in different countries and regions to see which marketing channels are most effective.
6. Monitor without prejudice
Earlier in the article we mentioned some of the disadvantages of marketing attribution. Another potential issue with monitoring attribution is the risk of bias.
A marketer with a preference for a certain marketing channel may select the timeframe or attribution model that paints that channel in the best light.
Putting watertight procedures in place can reduce the risk of this happening. For example, needing boardroom approval to change the attribution rules.
Making attribution reports available to everyone and using multi-touch attribution rather than first-touch attribution can increase transparency too.
And finally…
Marketing attribution isn’t 100% perfect (especially in the post-cookie world), and that’s okay.
Use it to measure trends rather than the absolute truth, and don’t lose sleep over it.
Xigen: The eCommerce agency you can count on
Marketing attribution can sound daunting if you’re not used to monitoring metrics. However, it’s not as hard as you think it is, and it’s a really useful way of finding out which marketing channels your customers respond best to.
We recommend starting small – take a look at Google Analytics and any other attribution tools baked into the platforms you already use. Then you can move to a more sophisticated, all-encompassing system when you’re ready.
If you need a little extra help getting started with marketing attribution, our team of eCommerce specialists are here to support you. We’ll get you up and running with a dedicated attribution platform, help you connect your data sources, and recommend how to improve your touchpoints to optimise conversion rates.
Get in touch today, and take the first step towards transforming how your customers engage with your online store for the better.
p.s Want to know more about metrics and eCommerce? Check out these useful articles:
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