Most companies these days market to customers via a multitude of media and campaigns. For many of these multichannel marketers, customers can potentially place orders from two or three strong channels: phone, Web and retail. On top of that, there often are several marketing campaigns still active at the purchase date. The challenge is attributing the revenue to the marketing campaign that triggered the purchase. Which marketing campaign/channel gets credit for the sale?
Why is it so challenging?
• Every business has multiple marketing campaigns and purchasing channels that overlap, thus confusing the attribution process.
• Every business prioritizes a simple, easy ordering process over the extra complexity of collecting source information at point of sale.
• Many households with two or more buyers have split-channel personalities.
• Many consumers change their channel preferences based upon season, product or other factors.
The result is a growing volume of “unknown source” orders.
Why is this important?
Marketing measurement disciplines begin crumbling with the loss of revenue attribution precision. Incorrect revenue attribution leads to suboptimal circulation decisions—predictive models miss the target audience, and marketing campaigns receive incorrect credit for revenue.
The following 10 recommendations can improve your revenue attribution success. These best practices begin with some fundamental ideas and progressively get more complex, but all will lead to significant benefits.
1. Ask for the marketing source from the buyer at point of sale wherever and however possible. It is the only perfect information you will get.
2. Segment your customers based upon their purchasing channel preferences. While not as effective as marketing channel preferences, it is a good surrogate to begin using in modeling, planning and reporting as it separates your multichannel and single-channel customers.
3. Conduct holdout tests and customer surveys to measure incremental revenue of marketing campaigns. This gives you quantifiable evidence of revenue impacts across marketing channels.