Marketing strategies are evolving with time. Today marketing has become more science than art. There are different approaches to quantifying marketing performance. The quantified information is then empirically analyzed to find out the effectiveness of a marketing strategy.
One marketing technique that has received a lot of attention both among marketers and academicians is market attribution. If you are hearing this word for the first time, you are not alone. Most people don’t know what is meant by marketing attribution, and how is it relevant to a business.
In this article, we will lay out the key point that every business owner should understand regarding market attribution and website support chat.
What is meant by Market Attribution?
The roots of market attribution can be traced back to the attribution theory developed by psychologist Fritz Heider in 1950s. The attrition theory states that people assign meanings to events. The theory examines what information is gathered and how it is synthesized to form a casual judgment.
The application of the attribution theory is marketing was spurred by the onset of digital marketing. The information available through digital marketing channels like email marketing, social media, website support chat and organic search encouraged marketers to seek techniques that allowed its effective usage. This has resulted in the formation of marketing attribution technique.
In its simplest form, marketing attribution refers to assigning a value to a marketing channel in terms of how it influences the purchase decision of the customer. For a marketing manager to make an informed decision, it is important to understand the value of each marketing channel.
How Market Attribution is Measured?
The fact is that the customer journey is not always linear. A customer can visit a website through multiple channels using different devices before making a purchase. For instance, a customer can visit a link on Twitter, a link on organic search result page, paid advertising link, website support chat, or clicking on a retargeted ad on a website.
Unlike other measurement methods that are mostly ‘black and white’, market attribution adds a shade of grey when measuring customer journey. Proper credit is assigned to the channel based on the influence it makes on the purchase decision of the customer. In other words, a percentage value is attached to a channel depending on how it influences the customer purchase.
Advanced attribution models can be developed to find out the relationship between different channels. For instance, a customer that has arrived at a site through online searches and is using website support chat will behave differently than a customer who has seen an ad on TV. Understanding the interaction (digital to digital versus broadcast TV to digital) can help in improving the marketing strategy.
The aim of the market attribution is to find out touch points that are effective in conversion, like website support chat. In this way, a manager can better allocate the resources and optimize the effectiveness of market expenditures. A marketer needs to not only identify the channels but also assign a value to them. It is important to measure the different channels and study how the customers interact with each channel. Marketing attribution technique can help in determining the importance of each channel in the customer purchase journey.