Online Attribution: Understanding the Journey in Digital Marketing

Understanding the intricate pathways customers take towards making a purchase isn't linear; it's a maze of touchpoints, interactions, and channels. Attributing conversions in a multi-channel marketing landscape is akin to solving a complex puzzle with pieces scattered across various platforms. When consumers are exposed to ads and marketing material on multiple channels, the challenge intensifies. Yet, amidst this complexity lies the crucial insight: consumers are engaging across channels, emphasizing the necessity of holistic attribution approaches that consider the interconnected nature of modern marketing ecosystems.

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What is Attribution?

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Attribution, in its essence, is the process of attributing credit to the various marketing touchpoints that lead to a conversion or purchase. It's about acknowledging the role each interaction plays in influencing a customer's decision-making process. Imagine it as a map, tracing the steps customers take from the first encounter to the final purchase. The difficulty lies in trying to answer some of these questions:

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-How did our new customer find you? 

-What did they check out before buying? 

-How much credit goes to the stuff they saw and clicked on? 

-Was it the mobile ad popping up on Facebook, the TV ad flashing in the background, or maybe that email you shot over? 

-What about when they chatted up your sales champ in the store?

-How do all these things mix and match to seal the deal?

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Nonetheless, precise attribution stretches far beyond merely considering cross-device and cross-channel interactions. There exists a multitude of attribution models, each honing in on distinct aspects of the customer journey and marketing landscape. These models delve into various facets, aiming to capture the nuanced impact of diverse touchpoints and strategies deployed throughout the consumer decision-making process. From understanding the influence of specific channels to dissecting the timing and sequence of interactions, these attribution approaches offer intricate perspectives essential for a comprehensive understanding of marketing effectiveness. Here are 4 type of online attribution shared by Clearcode:

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Cross-Device Attribution

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In today's interconnected world, customers don't stick to one device. They seamlessly switch between smartphones, tablets, laptops, and more. Cross-Device Attribution recognizes this behavior, giving credit to multiple devices involved in the customer's journey. It understands that a customer might discover a product on a smartphone but make the final purchase on a desktop or a tablet.

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This attribution type is crucial in comprehending how different devices contribute to the conversion path. It helps marketers grasp the significance of a cohesive experience across various platforms to ensure a seamless transition for customers.

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An interesting fact according to the "Multi-Device Usage Study" conducted by GfK is that “40% of online adults start an activity on one device and then complete it on another”. 

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Online to Offline and Offline to Online Attribution

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Not all interactions happen solely in the digital realm. Sometimes, customers might research online but make the actual purchase in a physical store (online to offline). Conversely, they might discover a product in-store but complete the purchase online (offline to online). These scenarios highlight the importance of Online to Offline and Offline to Online Attribution.

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Understanding these attribution methods is vital for businesses with physical locations. It paints a complete picture of customer behavior, showing how digital marketing efforts translate into real-world actions and vice versa. This knowledge helps bridge the gap between online and offline strategies for a more cohesive marketing approach.

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Online-Offline Attribution Techniques

Quantifying offline to online attribution poses a challenge. Instead, various workarounds and traditional methods remain viable options in attempting to tackle this attribution gap.

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Let’s share to you some of them:

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1) Unique URLs used solely for the purpose of driving traffic from one medium to a website.

2) Time-limited attribution windows set a time frame to attribute website visits to a marketing campaign.

3) Online and point of sale (POS) surveys involve asking customers how they found out about your company.

4) Using unique redeemable coupons/offer codes.

5) Knowing a customer’s postcode (collected during the checkout/shipping stage when finalizing an ecommerce transaction) allows marketers to measure the distribution of their offline campaigns.

6)  Beacons are one of the newest techniques out there. By utilizing the power of Bluetooth  marketers can attribute online marketing campaigns with offline purchases.  

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Inter-Channel Attribution

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Inter-Channel Attribution involves the intricate interplay among various marketing channels, showcasing their collaborative impact on consumer behavior. It's about understanding how different channels complement and influence one another throughout the customer's journey. This approach isn't about singling out one channel's performance but rather recognizing the synergy and interconnectedness among multiple touchpoints. By unraveling the interaction between social media, email campaigns, search ads, and more, Inter-Channel Attribution provides invaluable insights into how each contributes to the larger narrative of conversion, guiding marketers to orchestrate more harmonized and effective strategies across the marketing spectrum. It helps discern the synergies between these channels, identifying which combination yields the best results.

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Intra-Channel Attribution

Intra-Channel Attribution zooms in on specific channels themselves. It dissects the performance within a single channel, recognizing the impact of different elements within it. For instance, within social media, it might analyze the effectiveness of different ad formats or posting schedules.

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Conclusion

The key is to comprehend the diverse paths customers take and the various touchpoints they encounter. Cross-Device Attribution recognizes the multi-device nature of today's consumers. Online to Offline and Offline to Online Attribution bridges the gap between digital and physical interactions. In this digital age, the ability to dissect and understand the customer journey through these attribution types is the compass that guides successful marketing endeavors, helping businesses tailor their approaches for maximum impact and engagement.

With our dashboard, measuring touchpoints within the same category becomes intuitive and effortless. We assist in tracking advertisements, offered promotions, and product availability on the digital shelf. Our platform streamlines this process, providing a comprehensive overview to evaluate the effectiveness of various touchpoints within your category, empowering informed decision-making for optimized strategies.