An attribution model is a method used in marketing analytics to assign credit to different touchpoints along a customer's journey leading to a conversion or engagement with a brand Among these models lie four distinct methodologies, each offering unique perspectives into the customer journey: Linear, First Touch, Last Touch, and Non-Direct.
First Touch
First Touch attribution gives full credit to the initial interaction in a prospect’s journey before conversion, assigning 100% of the conversion credit to the first marketing channel a customer interacts with.
For example, if a customer initially discovers your business through Meta Ad, Meta Ads receives all credit for subsequent sales. Subsequent interactions, such as clicking on a Google Ad a week later and eventually visiting your website, do not affect this attribution. In the First Touch Attribution Model, Facebook Ads retains 100% of the conversion credit.
If your objective is to attract new top-of-the-funnel customers, the First Touch Attribution Model provides an effective means to assess the performance of each channel. It also serves as a valuable metric for determining which channels are most effective for brand awareness.
To accommodate extended sales cycles, you can select a lookback attribution window of your preference, typically ranging from 30 to 90 days. This attribution window ensures that when a prospect converts, credit is assigned solely to the first touch within the preceding 90 days, thereby considering relevance and recency.
Last Touch
Last Touch attribution tracks the final touchpoint before conversion.
Consider this scenario: a customer discovers your Meta page during social media research. A week later, they click on one of your Meta Ad, leading them to your website. While they haven't yet committed to a purchase, they are now familiar with your brand. After a week of contemplation, the customer searches for your brand name and proceeds to complete an online transaction. In this case, the branded search touchpoint (i.e., the customer using search terms to locate your website) receives 100% of the conversion credit.
Last Non Direct
Last Non-Direct attribution tracks the final single touchpoint before conversion, excluding any "direct" interactions occurring right before a customer converts.
Consider this example: a customer first discovers your brand by clicking on a TikTok Ad. Subsequently, they begin receiving newsletters and engage with them over a period. After some time, they bypass any direct interaction and directly visit your website, proceeding with a conversion. Instead of attributing the conversion credit to direct traffic (i.e., the customer directly visiting your website), the Last Non-Direct attribution model allocates this credit to the email marketing touchpoint.
The Last Non-Direct click model proves effective when customers tend to convert immediately upon directly visiting your website. By discerning which marketing channel influenced the conversion decision, you gain insight to optimize content and leverage this opportunity.
Linear
With a Linear attribution model, conversion credit is evenly distributed among all brand touchpoints.
For example, a customer discovers your brand on social media and subscribes to your mailing list. Subsequently, the customer directly visits your website and completes a successful $210 online purchase. In this scenario, there are three touchpoints. Each touchpoint receives an equal conversion credit of 33%, equating to a conversion value of $70 for each.
If you seek a straightforward method to illustrate the impact of your marketing channels, the Linear attribution model serves as a viable option. However, it entails assigning equal significance to all marketing channels. Consequently, this model may not necessarily lead to the most optimal marketing strategies.
Summary
The integration of Attribution Models with the Digital Fingerprint provided by Growify SmartID offers a comprehensive understanding of cross-channel campaigns. This integration empowers businesses to precisely discern the flow of customer interactions, enabling them to select the most effective strategies for enhancing engagement and optimizing marketing efforts across various channels.