Drafting your report to show evidence of your marketing impact can be challenging. You can measure critical metrics such as impressions, likes and clicks; however, showing how much, they impact your business’s bottom line is a different story.
About 75% of marketers report how their campaigns are directly influencing their revenue. Having trackable KPIs and clearly outlining how your marketing strategy impacts your ROI will enable you to pinpoint the necessary costs and increase your team’s efficiency.
Marketing attribution helps you connect the dots between several marketing channels and one closed sales deal. Hence, you can better understand critical areas such as which media drives the most sales and the related customer journey.
In this article, we will go through:
- What marketing attribution is and why it is important
- What you can gain from implementing marketing attribution
- How to improve attribution and close the loop
Let’s have a look at how you can benefit from marketing attribution.
What Is Marketing Attribution?
Marketing attribution is the strategy of understanding how your channels and campaigns directly contribute to generating revenue. It involves assessing the ROI of these channels to figure out the customer journey from knowing your product to making a purchase. You can make better data-driven decisions by determining the touchpoints and your marketing campaign that motivates leads to take the next step in the sales funnel or buy your product.
40% of marketers claim that more accurate data would improve reporting efficiency. The customer journey is becoming more complex with the increasing number of marketing channels and multiple touchpoints. This complexity results in higher demand for data that can drive better actionable marketing insights, making it easier to hit bottom lines and revenue goals.
The Importance of Attribution in Marketing
The primary goal of marketing attribution is to provide detailed data for marketers to discover the parts of their strategy that work and what is redundant. With such information, you can:
- Refine your marketing strategy to target an audience most likely to generate more revenue
- Lower the costs of your marketing campaigns to get higher ROI
- Use data intelligence and predictive analytics to do more efficient work
It can be challenging to prove how these factors impact your revenue by developing strategies to increase typical metrics like click rates and reach. Through monthly report meetings, you can see that ROI is the best way to judge how your marketing efforts impact the business’s growth.
For example, you notice there is a particular promotion in your email campaigns that converts leads. You can emphasize how that promotion drives sales and devote more resources to it.
Several brands have used 1 to 1 attribution to improve their marketing efficiency. This boost in productivity has led to more leads and a considerable increase in ROI. Adequate marketing attribution enables you to track the advertisement costs that lead to sales (CPA) and the price for each lead generated. These figures will allow you to get a big picture and a detailed view of your marketing strategy and discover what works.
Brands like Domino’s Pizza used 1 to 1 marketing to build their remarkable marketing campaigns, including the pizza emoji marketing and Snapchat “Dough to Door” film. Using 1 to 1 attribution has enabled them to increase their market cap, with a 1311.75% ROI in the first quarter.
Other brands that have used one-to-one attribution to enhance their marketing campaigns’ efficiency with first-quarter results include:
|Senior Care Brand||Home Services Brand|
|New Clients Added||82||51|
Nowadays, most shoppers use more than one channel to make purchases. If you are like 71% of marketers who view optimizing the customer journey across multiple touchpoints as a significant factor, you also understand the importance of eliminating channels that are not showing any results.
Marketing attribution enables you to recognize the channels that have the most significant impact on your bottom line. Your customer data is a gold mine that you can maximize with marketing attribution. Attribution across your multitude of marketing channels can provide 15-30% efficiency gains.
Optimize Your Marketing Budget
When setting up your marketing budget, you can feel the pressure of ensuring that you are spending on what can improve your ROI. Getting your budget right is essential because cases, where you do not get desirable returns, can impede your ability to secure reasonable funding in the future.
Using data analytics with the insights you get from marketing attribution helps you decide where you can put your funds and reap the most benefits. You can distinguish the factors in your budget that drive sales and facilitate stages in your customer journey.
Raise Your ROI – Unless you can track and measure how your marketing channels impact your business’s ROI, you will not be apparent in areas where you can improve. Marketing attribution helps you solve this challenge, allowing you to access real-time feedback on which campaigns perform best. Hence, you can adjust and enhance your campaigns’ efficiency to increase your ROI.
Have Proof of What Works – Marketing attribution helps you show that your ad campaigns generate revenue and show your work’s significance to the business’s growth. As a result, other stakeholders will take you more seriously, and you can reduce the time to get the resources you need to implement your marketing strategy.
Closing the Loop With Attribution
By closing the loop with attribution, you can credit your respective marketing channels for their impact on closed sales and revenue. You can report your successes effectively and enhance your work output. Improving your attribution is the next step toward maximizing your marketing campaigns to increase ROI.
Invest in a Data Intelligence Vendor – The most crucial factor in leveraging marketing attribution is visualizing data and making better decisions that can supercharge your performance. You can improve marketing with strategies such as tailoring campaigns to predictive analytics audiences per demographic and deriving key decision indicators from data.
Let Your Attribution Report Reflect Your Buyer’s Journey – Several stages in your buyer’s journey align with various channels and touchpoints. While aspects like paid search drive traffic without converting leads to customers, you should convey them in your report to better understand how each channel generates revenue.
Implementing Attribution to Gain Marketing Insights From Your Customer Data
Deliver Media enables you to take your marketing attribution game to the next level. Learning how to measure attribution for individual channels provides you with crucial decision indicators that you can use to market to the high-priority customers in every medium. Want to harness your customer data to discover essential marketing insights that drive your ROI? Contact us for a free data analysis to help you uncover a data-driven approach that is right for your business.