Definitions of marketing measurement and attribution
Defining Marketing Measurement
Marketing measurement is the method by which we measure the effectiveness and performance of any marketing strategy. This is done by looking at a range of metrics and Key Performance Indicators (KPIs). Defining effectiveness and performance can be nuanced, although it should principally be done based above all else on your business and marketing goals.
How do we Decide What to Measure?
More data has been produced in the last two years than in the entire history of the human race. This means that marketers need to be especially careful when assessing which metrics to use, and which metrics to focus on when making key strategic decisions. You should be selecting your metrics based on your business and marketing goals. For instance, there is no point focusing on a high Facebook post engagement rate if this does not lead to sales or to the movement of consumers further down the funnel. What end goal are you really trying to deliver? And what is the one thing that will let you know if you are on track?
Defining Marketing Attribution
Marketing attribution aims to understand what has happened to a potential customer before they reach a particular target outcome: whether it be buying a product or signing up to a newsletter. Before they reach that stage, they’ve already had several interactions with your brand. This could be seeing a piece of advertising, clicking on a webpage or having a conversation with a call centre. Attribution allows a business to understand which interactions have influenced conversion, and therefore give an appropriate value to each of them.
Understanding what really happens to a customer before they convert to your business is key to working out where to allocate marketing spend. By figuring out which exact channels have contributed to a customer’s decision to purchase, you can more effectively prioritise where to focus your efforts and ace your performance marketing strategy.