What is the attribution model and how to choose one for your company – WAU
The attribution model is a way to find out which path your customer took until he bought your product or service on the internet. There are several metrics that you should monitor. They help you create more efficient marketing plans for your business.
Do you know which channels were responsible for bringing the customer to your website?
The consumer takes several paths to buy a particular product. It can arise through email marketing, paid media, sponsored links, among other channels.
However, most Marketing professionals are unable to follow the process from start to finish. The lack of information is very bad, as you do not understand what are the best and worst strategies for your business.
So, we’re here to talk about attribution models. Let’s focus on the following topics:
What is an attribution model?
The process of buying a consumer on the internet is different from the customers who usually visit physical stores.
In the online world, the Internet user who accesses a virtual store already knows what he wants to buy and just takes his doubts about payment methods, models, quality and cheaper prices.
However, until the purchase is completed, the user travels quite a long way.
The route is even more complicated when the consumer is attracted by a service or product that was not in his plans, but that was always necessary at some point in his life.
The customer journey can take hours, days and even weeks. The attribution model is responsible for monitoring the path of your customer from the first contact he had with your business until the completion of the purchase.
However, most e-commerce companies make a mistake when evaluating the customer’s purchase journey: they check only the last page he clicked to make the purchase.
The ideal is to understand the impacts of various channels: display network (Google), e-mail, the link of an affiliate, among others. That way, you can find out which strategies were the ones that generated the most sales for your business.
Gone are the days when Marketing was based on “guessing”. Now, it is essential to have access to various data to make the best decisions in your routine.
The attribution model helps to monitor the performance of the display, what was the influence of email marketing on the conversion or if the customer had interaction with the product before finalizing the purchase.
Why is the attribution model important?
The attribution model is important because it follows the path of the internet user until the purchase is completed, showing the influence of each channel on the strategy.
Thus, you will know which are the moments that are having good results and those when it is necessary to pay special attention to generate more profit.
The most interesting thing is that the attribution model can change the URL to find out in Google Analytics which channels were the most clicked.
There are several types of attribution models. To get an idea, you can define the first and the last interaction with your store.
The most known are:
- first interaction model;
- attribution model last non-direct click;
- linear attribution model;
- time reduction attribution model;
- position allocation model.
What are the most common attribution models?
Now that you know the concept of the attribution model and what are its benefits, how about knowing the characteristics of each one?
First interaction model
In this first example, the conversion is 100% attributed to the first action the customer took on his journey to buy a product or service on your website.
In practice, this model does not evaluate the other actions of your Marketing team before the conversion. On the contrary, it focuses only on the strategies of the last interaction.
If the customer reached your shopping cart via email marketing, the result will be attributed to the newsletter you sent, regardless of whether he made other trips along the way.
Last click attribution
The last click attribution model is the most used by Marketing professionals. Here, the conversion credit is directed to the last interaction the customer made before purchasing the product.
The internet user may have gone through several paths to reach your cart page, for example, emails and blog content. However, it is only the last interaction that will take full credit.
Linear attribution model
The linear model does not give preference to any channel. This format gives the same sales credit to everyone. It is not important if the user arrived at your product through email marketing, remarketing, sponsored links or direct channel.
Time reduction attribution model
The time reduction attribution model occurs as follows: imagine that people arrived at your online store through email marketing and direct channel.
However, the customer started his journey with Google Adwords and affiliate links. In this example, the largest percentage of credits will go to those channels that the consumer visited a few hours before the conversion.
The first contacts would receive a lower percentage. So it would look like this: email marketing and direct channel with more credit, adwords and affiliate links with less credits.
Position assignment model
In this attribution model, all channels receive credits. However, they are not divided into the same amount.
- first interaction: 40% of the credit;
- second interaction: 40% credit;
- other interactions: 20% distributed to the rest of the channels.
The positive side of this model is that you can improve not only the first interaction that brought the customer to your site, but also the one that was responsible for the conversion.
The downside is that the model may distribute the credits in the wrong way, generating exaggerated numbers at the beginning and end of the journey.
Non-direct last click attribution model
The last model on our list is quite simple. Direct visits are not taken into account. The last channel is always the most important and receives full credit for the conversion.
How to choose an attribution model?
There are some strategies that you can develop to define the best attribution model for your company.
We know that each model has its positive and negative points. So, your choice will depend on the moment that your company is facing in the market.
Even so, we have separated some tips for you to learn how to choose an attribution model.
Create the consumer journey
Assess which are the different points of contact that make up the consumer’s buying journey. You can use Google Analytics as a basis, as it tracks data for each channel differently.
In each channel, their numbers are accompanied by Key Performance Indicators (KPIs).
The tool can also measure other interesting data:
- which consumers are engaged with your page;
- what channels they accessed your site;
- how long it takes to purchase a product or service.
Google Analytics is an intuitive and practical tool for Marketing professionals.
Define your goal
The choice of the attribution model will depend on the objective of your campaign. If you want to find out how many people reached the cart page through your blog, the last interaction is the most suitable.
If your focus is on a brand campaign, the first click is a great option.
Know your persona
Knowing the profile of your persona is essential to achieve your goal. Understand what are her reasons for purchase, her interests, demographic profile and which channels she frequents. That way, it will be easier to choose your attribution model.
Test, test and test!
In any Marketing strategy, testing is essential. In the attribution model, the situation would not be different. So be flexible and change the assignment depending on your results.
The rule is clear: attribution models must change according to the development of your business. After a period, make a new plan. At this point, you must reallocate investments and separate the budget correctly.
Then, re-evaluate the impacts of each action.
Where to monitor attribution models?
The best tool for analyzing attribution models is Google Analytics. It has several alternatives that can be customized according to the purpose of your business.
You can access the data through this path: go to “Conversions” which is located in the left menu. Then, click on “Assignment”. Then just click on “model comparison tools”.
A marketer needs to keep in mind that consumers are affected daily by campaigns on multiple channels. Therefore, you must put a value on each one.
The attribution models help to improve the results of your strategies, identify those channels that need improvement and bring a complete view of the whole effort of your team.
Now that you know how to measure your conversion channels, understand how to increase blog conversions with a plugin that can improve your business leads.