With the consumer journey becoming increasingly more complex, data has started existing in silos in businesses. This has further lead to challenges for marketers to attribute incentives to the right channels.
Swapnil Sinha, Head of Measurement & Attribution (India and Indonesia) at Google, feels that marketers need to bring the different silos together and create a proper attribution framework to address this issue.
“Marketers face big attribution challenge. They want to manage RoI better but don’t know how. This may be because the skill sets required for data analytics are different from those that marketers have. 98 per cent of all customer journeys involve more than one channel while 90 per cent of customers switch channels,” says Sinha.
According to him, due to the number of channels involved in the consumer journey, it is becoming difficult for marketers to find out which channels have contributed the most to the actual customer acquisition. What this means is that, either brands are overpaying the wrong channel or underpaying the most deserving channel. When this happens; RoI gets affected.
Says Sinha, one of the important things is to generate customer loyalty. “In the classical scenario, markets are overemphasizing on the last channel (before conversion). They are over emphasizing on spends at the bottom of the funnel.” The problem with this is that the last channel might not always be the main contributing factor to a sale. This, he says, is a problem to be solved----attribution of media spends to different channels in the consumer journey.
So, what is the solution?
“Digital marketing is not just a striker’s game; assists matter too. It is important to see the overall contribution of each channel and then choose the right mix (like in football). Track when the conversion takes place in relation to attribution. Create channel groupings to understand where each channel lies in the funnel,” said Sinha.
A factor that marketers need to consider when deciding on their attribution strategy, says Sinha, is the concept of assisted conversion and assist ratio, which is defined as the ratio of assisted conversions to last click conversions. Using these concepts while analyzing data regarding any campaign will help the marketer to decide which channel has contributed most to the campaign and then incentivize accordingly.
However, Sinha also cautioned that these concepts just provide an indication of how campaigns have performed. “Attribution gives you (marketer) a correlation not the actual cause. To find out the actual cause for a conversion, you need to do controlled tests,” he said.
Sinha was speaking at the Click Asia Summit 2016 held in Mumbai last week.