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Podcast: Iterative Marketing Podcast
Episode:

Moving From Attribution To Contribution
Category: Business
Duration: 00:33:30
Publish Date: 2017-09-01 09:23:13
Description:

Show Notes

Attribution Modeling, or the ability to connect a sale with a specific marketing effort, is a hot topic. But the model is flawed. In this podcast episode, Elizabeth and Steve introduce Contribution Modeling, a well-rounded way to measure the ROI of our marketing tactics.

What is Attribution Modeling (3:31 – 5:09)

  • A measurement for return on investment (ROI) for marketing at the tactical level
  • Three common models include:
    • Last-Touch Attribution: the last marketing tactic a prospect touched before they became a sale
    • First-Touch Attribution: the first marketing tactic a prospect touched before they became a sale
    • Multi-Touch Attribution: spreading revenue across multiple touch points based on weight or importance in the customer journey

Why Attribution Modeling is Flawed (5:10 – 9:50)

  • All marketing tactics work together and support each other, but marketers are in the dark as to how.
  • If revenue is divided between marketing tactics, it doesn t tell the full story. Without any one tactic, other marketing tactics will be hurt in the program.
    • Example: If a Last Touch Attribution Model shows email converted the sale, it may wrongly suggest that all tactics before the email were ineffective.

Charity Break – Operation Homefront – (9:51 – 10:38)

Introducing The Contribution Model (10:38 – 13:30)

  • This model asks: what contribution did a marketing tactic or touch point make to creating a sale? This can be answered by looking at what percentage of customer journeys have a touch point that resulted in a sale.
    • Example: Do you have evidence that a sale can occur without someone reading a blog post?

How to Track Correlation (13:31 – 16:41)

  • Data is needed in a third party system to track what marketing inputs and outputs were part of a prospect s customer journey.
  • Some marketing automation systems can use special automations to track this by appending tactics to the contact and account levels, indicating what touchpoints occurred on the journey.

But, There is a Catch (16:42 – 22:12)

  • Marketers who create a consistent experience ensure every prospect hits an intended tactic. In doing so, they also made sure every sale includes the same tactics.
  • This paints a picture that correlation equals causation, which isn t necessarily true
  • Example: One study found a correlation between people who like candy corn and those who are not concerned with home security.
  • Luckily, most marketers aren t perfect and purposely introduce inconsistency in their customer experience.

Summary (22:13 – 23:47)

We hope you want to join us on our journey. Find us on IterativeMarketing.net, the hub for the methodology and community. Email us at podcast@iterativemarketing.net, follow us on twitter at @iter8ive or join The Iterative Marketing Community LinkedIn group.

The Iterative Marketing Podcast is a production of Brilliant Metrics, a consultancy helping brands and agencies rid the world of marketing waste.

Producer: Heather Ohlman
Transcription: Emily Bechtel
Music: SeaStock Audio

Onward and upward!

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