There are a considerable number of attribution models in marketing that have been introduced and refined for tracking multichannel sales.
Multichannel and Omnichannel
Do you know the concepts of multichannel and omnichannel? These terms are widely used in digital marketing. Let us explain them here:
Multichannel
Different sales channels so that the customer can choose the one that best suits them. The multichannel strategy is based on offering more than one communication channel to customers. Therefore, companies that work with customer service via telephone, email and social media are considered multichannel.
Omnichannel
The omnichannel concept consists of the evolution of the multichannel strategy , enabling precisely this integration between channels. In other words, in addition to allowing the company to be present in various means of communication, it makes the channels dialogue with each other, integrating simultaneously and working in harmony with the service strategies.
One example is online purchasing via the website, with the customer picking up the item at a vietnam phone number example physical store that suits them best, a practice that reduces the time the customer has to wait for delivery and also eliminates shipping costs.
Integrating channels
Now that the differences between multichannel and omnichannel have been clarified, the challenge is to know how to measure and implement all of this. How can we integrate the various sales channels into a pleasant and, above all, useful experience for the customer? The different measurement attribution models are used for this purpose. Let’s talk about them below:
Last Interaction Model : Attributes 100% of the conversion value to the last channel the customer interacted with before purchasing or completing the conversion.
First Interaction Model: The “first interaction” model attributes 100% of the conversion value to the first channel the customer interacted with.
Linear Model: The Linear model gives equal credit to all channel interactions on the path to conversion.
Time-Decay Model: If your sales cycle involves only a brief consideration phase, the Time-Decay model may be appropriate. This model is based on the concept of exponential decay and gives more credit to touchpoints that occur closer to the time of conversion.
Position-Based Model: With the Position-Based model, you can create a hybrid of “Last Interaction” and “First Interaction.” Instead of giving all the credit to either the first or last interaction, you can split the credit between them.
These are Google's own standard measurement models. The possibilities are endless, and a standard attribution model won't always work. There are also customized and more complex models, called DDA (data drive attribution), CO-attribution or algorithmic. This model uses machine learning to learn the best way to "weight" each interaction, making the way KPIs are calculated dynamic and evolving over time.
When thinking about an attribution model that makes sense, we can use Neil Patel's practical guide as a reference to start designing the model according to your needs.
Keep the following points in mind:
What is your consumer or customer journey?
What are your points of interaction throughout the digital environment?
Make practical models
Be clear about the objectives of your campaign
Don't be afraid to test
The attribution model helps with a much more precise identification of the most valuable media in the customer journey. And measuring them is of utmost importance for defining investment allocations.