While there is no shortage of data flowing into your business, getting the most out of it can be challenging. Reliance on free or native tools gives marketers a view – but it’s often not enough. Here, Pavel Šima explains why Google Analytics is good, but comes up short as a stand-alone solution for most marketing pros.
What is the difference between rule-based attribution and data-driven attribution?
Keeping track of every single step of your customer's journey is not an easy task. At first it might seem incredibly difficult to have a constant stream of clean data to map the full experience of your customers from the initial contact to the point of sale. The good news, however, is that there are powerful attribution models that can help you develop a professional marketing strategy based on your multi-touch attribution data.
Tomáš Mikletič, manages 14 e-commerce sites in 7 Markets, with a mix of specialists and agencies. Roivenue sits at the heart of that process. We hosted Tomáš and a group made up of marketers, brand managers, advertisers, and analysts to discuss how the right tools can free up time for getting real, meaningful work done.
What is the difference between data analysis and data attribution?
The marketing science of collecting and understanding your data became more and more robust over the last years. Companies with multiple digital and offline marketing channels have been struggling to define their marketing strategies due to the large amounts of marketing data they get from these sources. This can be overwhelming if you don’t have a clear idea of where to concentrate your marketing efforts.
Data is useless unless you turn it into a source of concrete solutions by understanding the meaning of all of your numbers and how they can effectively drive your actions. An adequate marketing measurement can help you understand the real needs of your customers and how they engage with your brand. Both are key in making future plans and coming up with a solid marketing strategy.
A strategic marketing measurement doesn’t return the best form your data by only measuring how the audience interacts with your site. To deeply receive a full picture of your data, you need to blend analytics with a solid attribution insight. Understanding the actual needs of your customers through an adequate marketing measurement is key. Let’s be honest, any planning for the future begins by understanding how your customers engage with your brand.
Why is data analysis not enough?
Data analytics is a powerful strategic marketing measurement. It refers to any data feedback about customer behavior before and after any touch point. A company cannot build a successful digital strategy without using analytics to collect insights. Analytics are key in understanding a company’s digital marketing performance and measuring the client’s interaction with the brand’s online properties.
Analytics can collect data feedback that concerns your client behavior. If you need to discover what keywords return the highest earnings, what sections of your site have the highest engagement, or what pages are losing visitors, then analytics can help you obtain useful insights.
However, something is missing. Although this data can significantly help companies make strategic decisions around their digital marketing strategy, it may not be enough.
Why is Attribution a real added value?
Let’s be honest. Companies implementing multi-channel campaigns to reach their target markets have the risk of missing key details.
Simple data analysis as a marketing measurement tool doesn’t tell the full story of the many touch-points across a customer journey, or simply what led them to that click in the first place.
When data attribution enters the marketing strategy
Defining your marketing approach based on data-driven attribution consistently improves tracking and increases the concrete value assignment of all touchpoints that lead to your desired outcome. Data attribution digs deeper into customer behavior and ad impressions data, helping companies understand the complete customer journey.
By using data attribution, a company can determine CLV. The CLV defines the maximum revenue potential of a particular customer or customer type, allowing companies to focus their efforts on individuals and groups with a high CLV.
How multi-touch data driven attribution impacts your marketing strategy?
Data-driven attribution uses sophisticated algorithms that lead you towards realistic and complete insights that will help you drive your marketing efforts.
When comparing each interaction and conversion path you need to be aware of all effective touchpoints over a customers’ journey. This is necessary because they are all relevant components used to leverage the ultimate results.
An algorithmic attribution model allows you to effectively measure the most relevant KPIs for highly integrated multi-channel campaigns including profit, ROI, CLV, and sales. It is important to have a clear understanding of the attribution data in order to improve how the companies are making their investments for running ads or creating contents and optimize their marketing strategy.
Effectively allocating your marketing budget across channels
Making the correct marketing budget allocation across multiple channels can be overwhelming. Analyzing and understanding the entire customer journey for your business is both a complex and vital part of your marketing strategy. By having so many channels and types of customers, marketing attribution becomes more complex to fully understand.
E-commerce is no longer the new kid in town, but rather a fast growing and evolving market with many opportunities and challenges to tackle. In 2019 the revenue from e-commerce will continue to grow and so will the competition. Statista predicts that e-commerce retail worldwide will amount to $4.88 trillion by 2021, compared to $1.34 trillion in 2014.