Attribution is the Word of the Day
I've just returned from a few days in sunny Florida, attending the Direct Marketing Association's Retail Marking Conference 2010 (RMC), and the main takeaway I have from the event is that today's multichannel retailers are struggling with attribution.
Attribution is determining which of your marketing vehicles is reponsible for generating consumers’ purchases. And it doesn't have to be all or nothing. For example, a catalog and search can share credit for a sale.
While attribution in the retail world is often viewed strictly as a way to figure out which online marketing programs — e.g., search, affiliate or display, social media — are responsible for the most sales, it also refers to figuring out which sales channel (online or off) are bringing in the most dough.
It's a tricky thing: Old-line catalogers at the event claimed catalogs drive more online sales than websites or search efforts. E-commerce guys, on the other hand, said websites are where sales occur, so attribution should be credited to them. Email marketers were in the mix, too. They believe email messages received by opt-in consumers are the main driver of in-store and online sales.
Attribution is even more important these days, as corner offices are closely watching marketing teams, who are operating with tighter budgets, to see if spending is being accurately assigned.
The issue of attribution was discussed in several sessions at the RMC. A preconference intensive session led by Al Bessin, a partner at multichannel direct marketing firm LENSER, for example, discussed how customer and transactional information from multiple sources, such as website reports, email service providers and order management systems, can help marketers figure out which channels are working to ensure they're spending their marketing budgets in the best ways possible.