Do you know where your income is coming from? Which aspect of your marketing campaign contributes to your revenue? Revenue attribution can help you understand your buyers and give them the experience they’re looking for.
In this article:
- Revenue attribution helps marketers gain key insights about the individual contributions made during an advertising campaign in regards to conversions on digital platforms.
- They range from simple ones which consider only one customer touchpoint to more complex types using advanced algorithms.
- If you’re a B2B company, attributing different touchpoints offers better coverage and monitoring of where your revenue is coming from. This allows for better analysis of data and decision-making in the future.
What Is Revenue Attribution?
Revenue attribution is an important form of data collection for your marketing efforts. It helps marketers gain key insights about the individual contributions made during an advertising campaign in regards to conversions on digital platforms.
With the amount of information that is available to marketers today, it becomes difficult for them to determine which part or parts contributed most to converting a potential customer into their next sale. Revenue attribution helps with this by giving insights on how much each component impacted conversions. This strategy can help marketers create better action plans for future campaigns.
Revenue Attribution Models
There are different Revenue Attribution models you can delve into depending on your business needs. They range from simple ones which consider only one customer touchpoint to more complex types using advanced algorithms.
Single-Touch Attribution Models
- First Click – The first impression is the most important, but sometimes they don’t work as hoped. This model works by assigning credit to the very first piece of content a lead connects with. This helps them to better plan future campaigns by knowing what resonates for their audience and where they are in their journey with your campaign. It will also determine what efforts are likely to work and not work again down the line.
- Last Click – On the flip side, this model notes the last point of connection of a user before conversion. In essence, it monitors the last sales pitch made before revenue is generated.
The single-touch attribution model seems easy enough to understand, especially since you only have to monitor one point of connection. However, that’s also its greatest weakness due to its limited data and somewhat archaic method.
Because of technology, businesses have a plethora of platforms to connect with prospects. That’s where multitouch attribution enters the picture.
Multi-Touch Attribution Models
This model doesn’t just cover a buyer’s entry and exit. It makes sense of what’s happening in between those moments through data and advanced algorithms. N.Rich’s ABM platform gives your business an opportunity to build up by collecting data through a multi-touch revenue attribution model. With it, you can take control of your touchpoints and monitor which content worked and which ones didn’t.
There are different multi-touch attribution types depending on your needs as a business. They are:
- Linear – This is when revenue is equally distributed amongst different touchpoints in a single linear timeline.
- Time Decay – Similar to linear attribution, time decay also credits revenue amongst all the touchpoints but it puts a heavier emphasis on the most recent sales connection. This is generally used for longer sales cycles.
- Weighted – Marketers come up with their own logic when it comes to monitoring the data they receive from their customers. This is most common in enterprises with a unique setup and logic for their business plans and goals. However, because of its customized nature, it puts more pressure on the marketing team to gather more accurate data and will require a bit of time for your team to fully acclimate to it.
- U-Shaped – With this type of multi-touch model, 40% of conversions are attributed on the first contact, another 40% to actual conversion, and the other 20% is stretched out in between.
- W-Shaped – This type works just like the U-shape model but with additional monitoring of the opportunity creation touchpoint. They equally get 30% attributions each, while the rest gets the remaining 10%.
- Full Path – This model has the same structure as the W-shaped attribution model but with the sales closure as well as post-closure activities.
- Custom – If you have a unique business model that requires revenue monitoring of different aspects, then the custom model will do you a lot of good. Not only will you create your own marketing metrics, but you’ll also be able to factor in the different channels that your prospects interact with.
Single vs Multi-Touch Attribution
There is a debate about the reliability of single and multi-touch attribution models. The former is easier to dissect with just a few data to analyze and collect, while the latter can be more comprehensive but may get overwhelming with various avenues to monitor and check.
Single-touch models don’t need complex algorithms to set up. It’s easy enough to understand and deploy if you’re using only one marketing platform. However, you only see that one aspect of your client’s buying experience, giving you a limited look at what contributes to your revenue.
On the other hand, multi-touch attribution models bridge the missing parts between the first and last click of your buyer’s journey with your business. All the data you collect allows you to become more informed before making decisions. It will also help align the sales, marketing, and product departments. But, it will require the cooperation of said departments and may take several months to fully implement.
The Best Revenue Attribution Model for Your Business
Because of it’s limited touchpoints, single attribution models are perfect for B2C enterprises. It’s a more straightforward approach monitoring only one touchpoint, but it doesn’t give B2B companies a complete view of their audience.
If you’re a B2B company, attributing different touchpoints offers better coverage and monitoring of where your revenue is coming from. This allows for better analysis of data and decision-making in the future.
Also, if you’re using five or more marketing platforms for your campaigns, then you’ll get better results with a multi-touch attribution model. This can capture your client’s entire buying process from start to end.
Bottom line? If you’re using several marketing methods, then multi-touch is your best bet at getting data from your clients’ overall buying experience.
How many marketing channels are you monitoring right now? Are you making the most out of the data you collect?