What is multi-touch attribution

Multi-touch attribution is a method used in digital marketing to evaluate the value of each touchpoint in the customer journey that leads to a conversion. This can be particularly useful for companies that have multiple marketing channels and campaigns, as it allows them to understand which ones are contributing the most to their overall performance and revenue and optimise their marketing budget accordingly.

Multi-touch attribution vs single-touch attribution

To understand multi-touch attribution, it’s helpful to consider the contrast with other leading attribution models: last-touch attribution and first-touch attribution. Last-touch attribution only credits the final touchpoint of the customer journey with the conversion, while first-touch attribution only credits the first touchpoint. Both of these models can be limited in their ability to provide a full picture of marketing performance, as they only take into account one point in the customer journey.

The act of attributing credit to a touch point usually means that the touch point is attributed with a portion of the revenue made by a sale for aggregated analytical calculations.

Multi-touch attribution, on the other hand, looks at the entire customer journey and attempts to determine the value of each touchpoint leading up to the conversion. This involves analysing the role that each touchpoint played in creating the conversion, taking into account the cost of each touchpoint and the weight (importance) of its stage in the customer journey, and attributing to it a weighted portion of the revenue made from the conversion it contributed to. This allows marketers to allocate their future spending with higher accuracy leading to acquiring new customers in a more efficient and profitable way.

Multi-touch attribution Models

There are several different models of multi-touch attribution that companies can use, depending on their specific needs and goals. Some common models include:

  1. Linear attribution: This model gives equal weight to every touchpoint in the customer journey. This can be a good option for companies that have a long and complex sales process, as it recognizes the contributions of all touchpoints.
  2. Time decay attribution: This model assigns more weight to touchpoints that are closer in time to the conversion. This can be useful for companies that have shorter sales cycles and want to focus on the most recent touchpoints.
  3. Position-based attribution: This model assigns more weight to the first and last touchpoints in the customer journey, with the remaining touchpoints receiving equal weight. This can be a good option for companies that want to give credit to both the initial introduction to the brand and the final conversion.
  4. Custom attribution: This model allows companies to create their own attribution rules based on their specific needs and goals. This can be a good option for companies that have unique marketing campaigns or customer journeys.

Multi-touch attribution can be a complex process, as it involves a range of factors and often requires advanced data analysis. However, by considering all touchpoints in the customer journey, it provides a more comprehensive understanding of marketing performance and can help marketers make more informed optimization decisions.

Introduction to Multi-touch attribution

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