Brace For The Economic Storm
With record high debt levels, trade tensions and the end of loose monetary policy, many economists see a high chance of a recession in the UK and other developed economies by the end of 2020.
Uncertainties over the Government’s Brexit negotiating position are contributing to apprehension and delays to investment. Given the wider economic problems within the Eurozone and global slowdown, businesses need to start making themselves recession-proof now.
Smarten Up Your Attribution Efforts
There is now an even greater need to maximize ROI across all marketing campaigns. Despite tough times ahead, businesses are able to weather the storm and increase profits through judicious and targeted strategies.
Attribution is the method of assigning proportionate value to different touchpoints in a customer journey. In our data-driven world, it is no longer an option to waste of resources to conduct campaigns without knowing which channels contributed the most to converting visitors into customers, however, our research highlighted that 46% of companies felt measuring the ROI of their campaigns was their greatest challenge.
Advances in data science over the previous decade now mean that quantitative analysis can radically transform marketing efforts and remove the guesswork.
Single-Click Attribution – An Amateur’s Game
Unfortunately, not all forms of attribution are made alike. In fact, most off-the-shelf models arbitrarily assign credit to just one touchpoint such as the first or last. Using this approach, it is almost impossible to gain accurate insights on the effectiveness of different touchpoints. In fact, our research highlighted that just 33% of companies think that they are performing accurate attribution.
Aside from the inaccuracy, single-click attribution can be an expensive error. Businesses can continue focusing on ineffective channels that are costing them, oblivious that they are not allocating budget to the better performing channels.
For instance, let’s say a business choose to use a last-click attribution model and their typical visitor engaged with the campaign across ten different touchpoints. Statistically, it is unlikely that the last touchpoint contributed to more than 10% of the overall impact but with last-touch attribution, that business would go away convinced it was outperforming the others and allocate more budget into it.
Single-click models make it impossible to identify and double down on those channels that are most effective yet they are still the status quo – in the US, 48% of companies were still using lack click attribution during 2017.
Adopt A Data-Driven Approach
Using a data-driven approach, marketers are able to understand the effectiveness of every single touchpoint and channel in a customer’s journey. Through this, they can reduce their spending on ineffective mediums while doubling down on those already delivering strong results.
Fospha’s multi-touch attribution (MTA) product delivers this. It preserves your budgets by identifying underperforming channelsand increases your ROI allowing you to create more effective campaigns.
MTA removes all guesswork, shining a light on which channels are delivering. In addition, MTA can be applied to customer journeys that failed to lead to sales, providing insight into why a conversion didn’t happen so that a marketer can adapt their overall strategy from a position of confidence and understanding.
MTA absorbs data from all active channels and devices that a customer uses, collating and analysing it all under one umbrella. It acknowledges historical data and by continually analysing the latest information, it gives highly precise and relevant insights.
MTA is not just a marginal improvement on the last-click status quo – it offers the ability to gain a competitive edge. With the economic challenges ahead of us, this edge could be invaluable.