I'm Struggling to Understand Attribution for ROI - What Are My Options?
It's often asked. Can you help us understand attribution modelling for ROI?
In B2B it's extremely hard.
I won't go into the weeds of (in some cases) attribution because often it's a thankless task. It's about the whole machine working and there's so many touch-points in B2B it's hard to 100% know unless it's direct linear performance marketing -> download -> lead -> op -> close.
The problem with attribution:
1. It’s painful being asked by the CEO for attribution on ROI if you don’t know it.
2. Makes you nervous doing investments in new campaigns.
3. Makes you anxious not knowing really what works.
But here are some models to think about.
First Touch Model
A first-touch model applies 100% of attribution credit to the first tracked marketing interaction, which may occur before the person even enters your marketing database
Lead Creation Model
For example, if a customer visits your website three times and on the fourth occasion, completes a form for more information, the marketing effort that drove the fourth visit would receive 100% of revenue credit.
In this multi-touch model, 50% of the weight is assigned to the first touch and 50% to the lead creation touch
A W-shaped model is very similar to a U-shaped model except it acknowledges a third milestone, opportunity creation. Each primary stage of the sales cycle, first touch, lead creation and opportunity creation, is attributed with 30% of revenue and the remaining 10% is split between the other touchpoints.
Machine Learning Model
You can use the insights from the Machine-Learning model to refine and alter your Custom model, ultimately producing a machine-learning influenced model that incorporates human insights specific to your organization.
Tactic Weighted Model
In a Tactic-Weighted model, credit is allocated based on the importance of the specific marketing tactics involved. For example, attending a webinar may get more credit than downloading an e-book, and attending a prospect VIP dinner may get even more.
With this model, you can define custom stages in the sales cycle in addition to those included in the Full-Path model—a common one to add is an “MQL” stage. You can then define your own percentage weightings for each stage based on your unique business model.
Full Path Model
A full-path model also acknowledges major milestones in the sales cycle, now extending all the way through the revenue stage. Each significant stage receives 22.5% of the credit with the remaining 10% spread across touchpoints in between.
There is no right answer. At the same time you will be tempted with a tech platform i.e. Bizzable etc. My advice, think about what you are looking to achieve at first. Keep it simple and build in phases. Don't try to figure out attribtion with one big bang.