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Understand Multi-Touch Attribution: Maximize Your Marketing ROI

Q: What is Marketing Attribution?

Marketing Attribution is used to identify which campaigns or strategies are responsible for your customers becoming aware of your business and eventually purchasing your product and/or service. Before getting into any type of analysis, knowing this will make your ad spend fully optimized.

January 17, 2024

Multi-touch attribution is a crucial component of modern marketing, providing valuable insights into the customer journey and allowing businesses to allocate resources accurately and optimize their marketing efforts. In an increasingly complex and omnichannel customer journey, it's no longer enough to attribute a sale to the last touchpoint before the conversion. Instead, multi-touch attribution models consider multiple touchpoints along the journey, providing a more nuanced and complete understanding of the customer journey and the impact of various marketing channels. From linear attribution to time decay and U-shaped models, the choice of a multi-touch attribution approach depends on the specific goals and needs of the business.

This article will explore the critical concepts of multi-touch attribution and the different models available to improve your site's conversion rate and make your prospect's buying decision to click ADD TO CART.

What Does Multi-Touch Attribution Mean

Multi-Touch Attribution (MTA) is a marketing measurement method that attributes value to different touchpoints or marketing interactions in a customer's journey. This attribution model aims to identify and assign credit to the various touchpoints that led to a conversion or desired action instead of attributing the conversion solely to the last interaction. As a result, multi-touch attribution helps businesses understand the impact of their marketing efforts and optimize their marketing strategies for better ROI.

Comparing Multi-Touch, First-Touch, and Last-Touch Attribution Models: What's the Difference?

Multi-touch attribution, first-touch, and last-touch are all methods of assigning credit for a conversion to various touchpoints along the customer journey. The critical difference between the three models is the number of touchpoints they consider and how credit is assigned.

Multi-touch attribution (MTA): This model assigns credit to multiple touchpoints along the customer journey, providing a more nuanced and complete understanding of the customer journey and the impact of various marketing channels. MTA is often done through multiple linear, time decay, or U-shaped models.
First-touch (FTA): This model assigns 100% of the source for a conversion to the first touchpoint that initiated the customer journey. FTA is beneficial in cases where the initial touchpoint is highly influential in the customer's decision-making process.
Last-touch (LTA): This model assigns 100% of the source for a conversion to the last touchpoint before the conversion. This approach is often used as a default method, but it needs to be more accurate as it ignores the role of other touchpoints along the customer journey.

The choice of an attribution model will depend on the specific goals and needs of the business, and a thorough understanding of the customer journey is crucial in making an informed decision.

Comparing First-Touch and Multi-Touch Attribution

First-touch and multi-touch attribution are two different methods of assigning credit for a conversion to various touchpoints along the customer journey. While both have their strengths and weaknesses, the choice of which model to use depends on the specific needs and goals of the business.

First-touch attribution (FTA): This model assigns 100% of the source for a conversion to the first touchpoint that initiated the customer journey. This is useful in cases where the initial touchpoint is highly influential in the customer's decision-making process, such as in lead generation or brand awareness campaigns.
Multi-touch attribution (MTA): This model assigns credit to multiple touchpoints along the customer journey, providing a more nuanced and complete understanding of the customer journey and the impact of various marketing channels. This can be done through multiple linear, time decay, or U-shaped models. This approach helps understand the role of multiple touchpoints along the customer journey and how they contribute to a conversion.

First-touch attribution is best suited for campaigns where the initial touchpoint is the most important. In contrast, multi-touch attribution is more suitable for understanding the customer journey and the impact of various marketing channels. The choice of an attribution model should be based on a thorough understanding of the customer journey and the objectives of the marketing and sales efforts.

Comparing Last-Touch and Multi-Touch Attribution

Last-touch and multi-touch attribution are two different methods of assigning credit for a conversion to various touchpoints along the customer journey. While both have their strengths and weaknesses, the choice of which model to use depends on the specific needs and goals of the business.

Last-touch attribution (LTA): This model assigns 100% of the source for a conversion to the last touchpoint before the conversion. This approach is often used as a default method, but it can be misleading as it ignores the role of other touchpoints along the customer journey. This model helps identify the immediate causes of a conversion, but it does not provide a comprehensive view of the customer journey.
Multi-touch attribution (MTA): This model assigns credit to multiple touchpoints along the customer journey, providing a more nuanced and complete understanding of the customer journey and the impact of various marketing channels. This can be done through multiple linear, time decay, or U-shaped models. This approach helps understand the role of multiple touchpoints along the customer journey and how they contribute to a conversion.

Last-touch attribution helps identify the immediate causes of a conversion, but it does not provide a comprehensive view of the customer journey. On the other hand, multi-touch attribution provides a complete understanding of the customer journey and the impact of various marketing channels. The choice of an attribution model should be based on a thorough understanding of the customer journey and the objectives of the marketing and sales efforts.

Advantages of Multi-Touch Attribution

Multi-touch attribution has several benefits for businesses:

Improved Understanding of the Customer Journey: Multi-touch attribution provides a more complete and nuanced view of the customer journey, allowing businesses to understand the role of various touchpoints and how they contribute to a conversion.
Accurate Resource Allocation: By taking into account multiple touchpoints, multi-touch attribution allows businesses to allocate resources accurately and optimize their marketing efforts based on a complete understanding of what is driving conversions.
Better Optimization of Marketing Channels: With a better understanding of the customer journey, businesses can optimize their marketing efforts by identifying the most effective channels and touchpoints and making informed decisions about where to allocate resources.
Increased Visibility into Cross-Channel Performance: Multi-touch attribution provides a comprehensive view of the customer journey, allowing businesses to see the impact of various channels and touchpoints in a cross-channel context.
Better Data-Driven Decision Making: By providing a more complete and accurate view of the customer journey, multi-touch attribution enables businesses to make data-driven decisions about their marketing and sales efforts, leading to improved outcomes and increased efficiency.

Multi-touch attribution is an essential component of modern marketing, providing valuable insights into the customer journey and enabling businesses to make data-driven decisions about their marketing and sales efforts.

Essential Multi-Touch Attribution Models You Should Know

Multi-touch attribution is a method of assigning credit for a conversion to multiple touchpoints along the customer journey. Businesses can choose from several types of multi-touch attribution models, each with its strengths and weaknesses.

The most commonly used models include:

linear
time decay
U-shaped
W-shaped
custom models

The choice of which model to use depends on the specific needs and goals of the business, as well as the nature of the customer journey. Each model provides a different way of assigning credit to various touchpoints. Understanding the differences between these models is critical to making informed decisions about resource allocation and marketing optimization.

What is the Linear Multi-Touch Attribution Model?

The linear multi-touch attribution model assigns equal credit to each touchpoint along the customer journey. In this model, each touchpoint is credited with an equal share of the conversion, regardless of its impact on the customer decision-making process. This approach is helpful in cases where all touchpoints are equally essential and contribute equally to the conversion.

For example, if a customer journey consists of five touchpoints, each touchpoint would receive 20% of the credit for the conversion. This approach provides a straightforward way of assigning credit, but it does not consider the relative impact of each touchpoint on the customer decision-making process.

The linear multi-touch attribution model is helpful in cases where all touchpoints are equally important, but it does not provide a nuanced view of the customer journey. Businesses should choose this model with care, considering their needs and goals and understanding its limitations.

Understanding the U-Shaped Multi-Touch Attribution Model

The U-shaped multi-touch attribution model assigns credit for a conversion to the first and last touchpoints in the customer journey. In contrast, all other touchpoints receive a smaller portion of the credit. This model considers the importance of both the first touchpoint, which may introduce the customer to the brand or product, and the last touchpoint, which directly leads to the conversion.

In this model, the first and last touchpoints receive a more significant portion of the credit, usually 40% each, while the remaining touchpoints receive 20% each. This approach provides a balance between recognizing the impact of the first and last touchpoints and acknowledging the role of other touchpoints in the customer decision-making process.

The U-shaped model is helpful in cases where the first touchpoint is essential in introducing the customer to the brand or product, while the last touchpoint directly leads to the conversion. Businesses should choose this model if they want to give credit to both the introduction and the final touchpoints in the customer journey.

The U-shaped multi-touch attribution model provides a balanced view of the customer journey, giving credit to both the first and last touchpoints while acknowledging the role of other touchpoints. It is a valuable model for businesses looking to understand the relative impact of each touchpoint in the customer decision-making process.

Exploring the Time Decay Multi-Touch Attribution Model

The time decay multi-touch attribution model is a method of assigning credit for a conversion based on the proximity of each touchpoint to the conversion. In this model, touchpoints closer to the conversion receive a more significant portion of the credit, while touchpoints that occurred further in the past receive a smaller portion.

The idea behind the time decay model is that touchpoints closer to the conversion have a more recent and relevant impact on the customer decision-making process and therefore deserve more credit. For example, if a customer journey consists of five touchpoints, the touchpoint closest to the conversion might receive 40% of the credit, while the touchpoints that occurred further in the past might receive 20% each.

The time decay model is helpful in cases where the timing of touchpoints is essential and relevant to the customer decision-making process. Businesses should choose this model if they want to understand the relative impact of each touchpoint on the customer decision-making process based on the timing of each touchpoint.

Examining the W-Shaped Multi-Touch Attribution Model

The W-shaped multi-touch attribution model is a method of assigning credit for a conversion to the first touchpoint, middle touchpoints, and last touchpoint. This model considers the importance of the first touchpoint, which may introduce the customer to the brand or product, the middle touchpoints, which may involve research and comparison, and the last touchpoint, which directly leads to the conversion.

In this model, the first touchpoint might receive 30% of the credit, the middle touchpoints might receive 20% of the credit each, and the last touchpoint might receive 30% of the credit. This approach provides a more nuanced view of the customer journey, acknowledging the importance of multiple touchpoints, including those in the middle of the journey.

The W-shaped model is useful in cases where the customer journey involves multiple touchpoints, including both introduction and research and the final touchpoint that leads directly to the conversion. Businesses should choose this model if they want to give credit to the introduction, research, and last touchpoints in the customer journey.

The W-shaped multi-touch attribution model provides a comprehensive view of the customer journey, giving credit to multiple touchpoints, including the introduction, research, and final touchpoints. It is a useful model for businesses looking to understand the relative impact of each touchpoint in the customer decision-making process.

The Full Path Multi-Touch Attribution Model: An Overview

The full path multi-touch attribution model is a method of assigning credit for a conversion to every touchpoint in the customer journey, regardless of the number of touchpoints involved. In this model, each touchpoint receives an equal portion of the credit for the conversion, regardless of the time of the touchpoint or its proximity to the conversion.

The idea behind the full path model is that each touchpoint in the customer journey contributes to the eventual conversion and therefore deserves credit. For example, if a customer journey consists of five touchpoints, each touchpoint might receive 20% of the credit.

The full path model is useful in cases where each touchpoint in the customer journey is important and relevant to the customer decision-making process. Businesses want to understand the relative impact of each touchpoint on the customer decision-making process. Businesses should choose this model to give equal credit to each touchpoint in the customer journey, regardless of its proximity to the conversion or timing.

In conclusion, the full path multi-touch attribution model provides a comprehensive view of the customer journey, giving credit to every touchpoint in the customer journey. It is a useful model for businesses looking to understand the relative impact of each touchpoint in the customer decision-making process, regardless of timing or proximity to the conversion.

Also see: Full Funnell Attribution - Major Changes for 2024

Designing a Custom Multi-Touch Attribution Model

The custom multi-touch attribution model is a method of assigning credit for a conversion tailored to the business's specific needs and requirements. In this model, the business can define its rules and weightings for assigning credit to each touchpoint in the customer journey.

The custom model allows businesses to create a unique attribution approach considering their goals, target audience, and customer journey. For example, a business might give more credit to touchpoints that are more directly relevant to the customer decision-making process or give more weight to touchpoints that occur closer to the conversion.

The custom model is helpful for businesses that want a highly tailored approach to attribution and for businesses with unique needs and requirements that other attribution models do not meet. Businesses should choose this model if they want to create a custom attribution approach tailored to their specific goals and requirements.

In conclusion, the custom multi-touch attribution model provides businesses with a highly tailored approach to attribution, allowing them to create a unique set of rules and weightings for assigning credit to each touchpoint in the customer journey. It is a valuable model for businesses with unique needs and requirements that other attribution models do not meet.

Steps for Implementing Multi-Touch Attribution

Implementing a multi-touch attribution model involves several steps:

Define your business goals:
Before implementing a multi-touch attribution model, defining the business goals you are trying to achieve is essential. This will help you choose the suitable attribution model and determine the metrics you will use to measure success.
Choose the right attribution model:
Several multi-touch attribution models exist, including linear, time decay, W-shaped, and custom. Choose the model that best fits your business goals and customer journey.
Collect data:
You need data on your customer journey to implement a multi-touch attribution model. This includes information on each touchpoint in the customer journey, including the channel, timing, and type of interaction.
Set up tracking and measurement:
To accurately measure the impact of each touchpoint in the customer journey, it is crucial to set up tracking and measurement systems. This may involve integrating your marketing and analytics tools or setting up custom tracking codes on your website.
Assign credit:
Using the rules and weightings defined by your chosen attribution model, assign credit to each touchpoint in the customer journey.
Analyze and optimize:
Regularly analyze your data and adjust your attribution model as needed to optimize your results and reach your business goals.

Implementing a multi-touch attribution model requires careful planning and attention to detail. It involves defining business goals, choosing the suitable attribution model, collecting data, setting up tracking and measurement systems, assigning credit, and regularly analyzing and optimizing results.

When is Multi-Touch Attribution Appropriate to Use?

Multi-touch attribution is a valuable tool for businesses that want to understand the customer journey better and measure the impact of their marketing efforts. It is beneficial in the following situations:

Complex customer journeys: If a customer interacts with your business through multiple channels and touchpoints before making a purchase, a multi-touch attribution model can help you understand the impact of each touchpoint on the final conversion.
Multiple marketing channels: If you use multiple marketing channels, such as email, social media, and display advertising, a multi-touch attribution model can help you understand the impact of each channel on the customer journey.
Measuring cross-device conversions: If customers use multiple devices to interact with your business, a multi-touch attribution model can help you understand the impact of each device on the customer journey.
Optimizing marketing spend: By understanding the impact of each touchpoint in the customer journey, a multi-touch attribution model can help you optimize your marketing spend and allocate resources to the channels and touchpoints with the most significant impact.

Multi-touch attribution is a helpful tool for businesses that want to understand the customer journey better and measure the impact of their marketing efforts. It is beneficial when the customer journey is complex, multiple marketing channels are used, cross-device conversions are expected, or optimization of marketing spend is a priority.

Also see: Understanding Multi-Touch Attribution in Marketing.

Comparing Multi-Touch and Multi-Channel Attribution: What's the Difference?

Multi-touch attribution and multi-channel attribution are related but distinct concepts.

Multi-touch attribution refers to attributing value to each touchpoint in the customer journey rather than just the last or first touch. It provides a more comprehensive view of the customer journey and helps businesses understand the impact of each touchpoint on the final conversion.

Multi-channel attribution refers to attributing value to each marketing channel used in the customer journey rather than just one channel. It provides a more comprehensive view of the customer journey and helps businesses understand the impact of each marketing channel on the final conversion.

Multi-touch attribution and multi-channel attribution are related but distinct concepts. Multi-touch attribution focuses on attributing value to each touchpoint in the customer journey. In contrast, multi-channel attribution focuses on attributing value to each marketing channel used in the customer journey. Both approaches provide a more comprehensive view of the customer journey and help businesses understand the impact of their marketing efforts.

Obstacles in Implementing Multi-Touch Attribution

Multi-touch attribution is a valuable tool for businesses that want to understand the customer journey better and measure the impact of their marketing efforts. However, there are several challenges associated with its implementation:

Data collection and integration: Multi-touch attribution requires data from multiple sources, such as marketing campaigns, website analytics, and customer relationship management systems. Integrating this data can be challenging and requires a robust data infrastructure.
Attributing value to touchpoints: Determining the value of each touchpoint in the customer journey can be challenging, mainly when touchpoints occur across multiple devices and channels.
Dealing with bias: Multi-touch attribution models can be biased based on the assumptions and weightings used. This can lead to inaccurate conclusions about the impact of different touchpoints on the customer journey.
Lack of standardization: There is currently no standard or widely accepted method for implementing multi-touch attribution, which can lead to inconsistencies and difficulties in comparing results across different businesses and industries.
Complexity: Multi-touch attribution models can be complex and challenging to understand, especially for businesses that are new to the concept.

While multi-touch attribution is a valuable tool for businesses that want to understand the customer journey better and measure the impact of their marketing efforts, there are several challenges associated with its implementation. These challenges include data collection and integration, attributing value to touchpoints, dealing with bias, lack of standardization, and complexity.

The Flexibility Provided by Multi-Touch Attribution

Multi-touch attribution enables flexibility by providing businesses with a more comprehensive view of the customer journey, which allows them to make data-driven decisions and adjust their marketing strategies accordingly. The following are some of how multi-touch attribution enables flexibility:

Customization: Multi-touch attribution models can be customized to fit the specific needs of a business. This allows businesses to attribute value to touchpoints most relevant to their goals and target audience.
Data-driven decision-making: Multi-touch attribution provides businesses with valuable insights into the customer journey, which can be used to make data-driven decisions and adjust their marketing strategies accordingly.
Improved optimization: Multi-touch attribution provides businesses with a more comprehensive view of the customer journey, which allows them to optimize their marketing efforts and improve their overall results.
Real-time insights: Multi-touch attribution can be implemented in real-time, which allows businesses to respond quickly to changes in the customer journey and make data-driven decisions.

Multi-touch attribution enables flexibility by providing businesses with a more comprehensive view of the customer journey, which allows them to make data-driven decisions and adjust their marketing strategies accordingly. The ability to customize, make data-driven decisions, optimize, and respond in real-time are just a few of how multi-touch attribution enables flexibility.

Coming Soon: The Complete Guide to B2B and B2C Multitouch Attribution Models and Data Tracking.

These marketing touchpoints will greatly improve the performance of your marketing team. Understanding the "buyer journey" or "customer journey" will make future decisions easy and on point. A better customer experience leads to more conversions, an increase in average order size, and longer customer loyalty. Attribution data and customer data are vital for any organization to make the right decisions at the right time to turn a quarter headed into the red into one that's in the black.

See Also: Multi-Touch Attribution vs. First-Touch Attribution vs. Last-Touch Attribution | Multi Channel Attribution | W Shaped Attribution Model | Multi Touch Attribution Models | Single Touch Attribution Models | Marketing Mix Modeling (MMM) and Multi Touch Attribution (MTA)

What is an example of multi-touch attribution?

An example of multi-touch attribution is a customer's journey to purchase a product online. The customer might have first heard about the product through a social media ad, then researched the product on the company's website after seeing a display ad, and finally purchased after receiving a targeted email promotion. In this example, multi-touch attribution would assign credit to each touchpoint (social media ad, display ad, and targeted email) in the customer's journey to purchase instead of attributing the sale solely to the final email promotion. This information can help the company understand the impact of each touchpoint and optimize its marketing strategies accordingly.

What is multi-touch attribution MTA?

MTA stands for Multi-Touch Attribution, a marketing measurement method used to attribute value to different touchpoints or marketing interactions in a customer's journey. The goal of MTA is to provide a more comprehensive understanding of the customer journey and the impact of each touchpoint on the conversion. This allows businesses to optimize their marketing strategies and allocate resources more effectively. MTA can be performed using various models, such as first touch, last touch, linear, time decay, or custom algorithms, depending on the specific business needs and goals.

What is single touch vs multi-touch attribution?

Single-touch and multi-touch attribution are two different methods of attributing value to touchpoints in a customer's journey.

Single touch attribution assigns credit for conversion or desired action to only one touchpoint, typically the last interaction the customer had with the brand before converting. For example, if a customer purchased after clicking on a targeted email, single-touch attribution would attribute the sale solely to that email.

Multi-touch attribution, on the other hand, assigns credit to multiple touchpoints in the customer journey. This method recognizes that multiple interactions with a brand often influence a customer's conversion decision. For example, a customer might have first heard about a product through a social media ad, researched the product on the company's website after seeing a display ad, and finally made the purchase after receiving a targeted email promotion.

Single touch attribution assigns 100% of the credit for a conversion to one touchpoint, typically the last touchpoint before the conversion. On the other hand, multi-touch attribution assigns credit to multiple touchpoints along the customer journey that contributes to a conversion, allowing for a more nuanced and accurate understanding of the customer journey. This can be done through various linear, time decay, or U-shaped models.

What is the best multi-touch attribution model?

There is no "best" multi-touch attribution model, as the most suitable model depends on the specific needs and goals of the business. The choice of a multi-touch attribution model should be based on a thorough understanding of the customer journey and the objectives of the marketing and sales efforts.

Some popular multi-touch attribution models include:

Linear: Assigns equal credit to each touchpoint along the customer journey.
Time decay: Assigns more credit to touchpoints closer in time to the conversion.
U-shaped: Assigns more credit to the first and last touchpoints, while lesser credit is assigned to touchpoints in between.
W-shaped: Similar to U-shaped, but with more emphasis on middle touchpoints.

Ultimately, the best multi-touch attribution model is the one that aligns with a business's goals and provides the most valuable insights into the customer journey. Experimenting with different models and continuously assessing and refining the approach is recommended.

What is Marketing Attribution?

How To Implement Multi-Touch Attribution?

Multitouch attribution is a method used in marketing to assign credit to different marketing touchpoints in a customer's journey. Here's a step-by-step guide on how to implement it:

Step 1: Define your business goals and key performance indicators (KPIs). Before you start, you need to know what you aim to achieve and how you'll measure success. This could be increased sales, more leads, improved customer retention, etc.

Step 2: Map out the customer journey. Understand the path a customer takes from the first interaction to conversion. This could involve various channels such as social media, email, paid ads, organic search, etc.

Step 3: Identify all touchpoints. List all the interactions a customer may have with your brand during their journey. This could include seeing an ad, clicking on a link, visiting your website, etc.

Step 4: Choose a multitouch attribution model. Several models are available, such as linear, time decay, U-shaped, W-shaped, and more. The choice depends on your business model and the nature of your marketing campaigns.

Step 5: Implement tracking mechanisms. Use tools like Google Analytics, CRM systems, and marketing automation tools to track the customer's journey across touchpoints. You may need to use tracking codes, pixels, or cookies to capture data.

Step 6: Assign a value to each touchpoint. Based on your chosen model, assign a credit value to each touchpoint. For example, in a linear model, each touchpoint receives equal credit. In a time decay model, the touchpoints closer to conversion get more recognition.

Step 7: Analyze and adjust. After running your campaigns for a while, analyze the data. See which touchpoints are most effective and adjust your strategy accordingly. This is a continuous process, as customer behavior and marketing effectiveness can change over time.

Step 8: Communicate and act on your findings. Share the results with your team and use the insights to inform your marketing strategies. This could involve investing more in high-performing channels or reevaluating underperforming ones.

Implementing a successful multitouch attribution strategy can be complex and requires careful planning, precise tracking, and ongoing analysis. However, it can provide valuable insights into how different marketing efforts contribute to your business goals.

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