In an evolving commercial market – one where an optimal customer experience and journey are the zenith of what businesses should be striving for – how businesses target and influence prospects is crucial. But knowing which targets to influence and how depends on effective attribution.
Data is the only way to measure how successful marketing practices are. Why? Because data allows businesses to maximise their ROI with individual-level attribution. Research shows the highest performing marketers (those that exceed their growth plans by more than 25%), utilise a data-driven approach to measure and manage marketing performance. Moreover, Forbes reports that marketers that spend 10% of their marketing budget on measurement are three times more likely to hit or beat their sales targets.
A historical problem
According to eMarketer, in 2019, worldwide digital ad spending will rise by 17.6%. That means that, for the first time, digital will account for roughly half of the global ad market.
Yet while spend on digital advertising is increasing, investment in the kind of marketing measurement necessary to deliver the required insight has been paltry. With Forrester reporting that about 0.2% of marketing budgets are spent on measurement of advertising. This is largely because until recently, measurements were difficult to implement and often inaccurate.
For many, bridging traditional marketing methods—like combining online channels with offline channels —remains a challenge. Even fewer are capable of combining the two and accounting for critical nonmarketing touchpoints, such as call centres and social touchpoints.
But things have changed. New data sources and sophisticated techniques are now able to provide data that can accurately measure metrics like profit, sales, market share, penetration, loyalty, and price sensitivity.
Why marketers should invest in data-driven attribution
Data-driven attribution modelling is the foundation of better marketing decision-making. It’s that simple. It allows businesses to capture every customer interaction, assign a monetary value to each marketing touchpoint and interpret the data effectively to make robust, evidence-based decisions.
Businesses can learn how they can attract an increased number of high-value customers, increase customer loyalty and enhance their overall value. Moreover, best practice data-driven attribution will also provide insight into when the customer journey ceases and how retention rates can be increased.
Conventional modelling just doesn’t fulfil its desired objections because businesses that employ the processes are hindered by basic testing and modelling methods.
For example, A/B testing solely explains how each marketing channel performs independently. It provides zero insight into how all marketing channels work together. In addition, standard position or rule-based models, as easy-to-build as they are, tend to be inherently biased. This results in inaccurate data.
Simply put, analytics needs to be at the heart of every marketer’s – and organisation’s – strategy. Combining social media with data-driven attribution models, for instance, will unlock true marketing value. Many sites, including YouTube and social media sites like Facebook and Pinterest block customer-level tracking, and only clicks can be observed. If these impressions are ignored then the true value of these channels can be significantly underrepresented in the attribution. Jaywing has a unique and intuitive approach to determining which journeys are missing these impression touchpoints. This impression model then inserts these missing events into selected journeys at the appropriate point in time.
According to statistics, this will increase brand awareness, customer engagement, and responses by 9%. Though this may not seem like a vast percentage, a business with 20,000 followers will be able to influence an additional 2,000 prospects. Can any business afford to not influence close to 10% more customers?
The key to marketing success is to optimise strategies. Customer journeys are anything but linear. They occur across multiple platforms, devices and sessions. By using advanced data-driven attribution to measure how customers interact with each channel across every stage of the journey, you can determine the value of each channel and tweak marketing activities to optimise influence, impact and ROI.
Moreover, the nuanced and subtle manner data is collated gives marketers a broad understanding of performance. Data-driven attribution can tell marketers how display ads can help paid search efforts, or how SEO and social media strategies complement one another. This is far more insightful than merely attributing a sale to the last click and can help businesses to decide which channels are best to drive conversions and which require more, or less investment.