Question 1

What is Attribution Software?

Accepted Answer

Attribution software, or marketing attribution software, is used to determine the marketing tactics that are contributing to sales or conversions. Marketing teams use a variety of software and marketing tools to funnel prospects from product awareness all the way down to purchase. During this customer journey, prospects go through various channels or touchpoints; there is usually a point where a prospect goes from being interested to becoming a committed buyer. Attribution platforms allow marketers to determine which touchpoint or channel was most effective in convincing that prospect to become a committed buyer and finally make a purchase. 
 There are various attribution models that marketers use to determine which touchpoints are the most effective for their business, such as first-touch, last-touch, and multi-touch attribution. To choose a model, it is important for a business to evaluate their sales cycle and determine how much of it is done online and offline. For example, most e-commerce sites rely heavily on touchpoints such as display advertising and native advertising. Conversely, a local service such as an auto mechanic may prefer traditional methods like newspaper advertising. Ultimately, most organizations may utilize several attribution models to evaluate which marketing campaigns are the most effective. The best way to begin using attribution software is by mapping out a typical customer journey and identifying which channels and touchpoints are the most important for the particular business model.  
 Lastly, it’s important to note that attribution software should not be mistaken for mobile attribution software. Rather than focusing on which touchpoints convert a prospect into a buyer, mobile attribution software focuses specifically on the techniques that drove each user to install a mobile application. Mobile attribution provides insight into where each mobile application install came from across every marketing channel, device, and advertising network. 
 What Types of Attribution Software Exist?  
 Since there are so many different touchpoints and channels that a buyer sifts through during the sales funnel, there are various types of attribution software to help determine the channel that influenced a purchase the most. Listed below are some of the types of attribution software:  
 Multi-touch attribution 
 Multi-touch attribution helps determine which touchpoint is the most responsible for a final sale. Rather than testing major sales channels, multi-touch attribution focuses on granular touchpoints such as marketing messages and native ads. For example, if a customer is searching for new phones on the internet, they may soon see ads from various phone companies. If a customer sees an ad for a phone they like and immediately proceeds to the company website, then marketers can accurately determine that particular ad is what influenced that buyer to come to the website. Multi-touch attribution is beneficial because it offers specific granular data for marketers rather than broad assumptions on what contributed to a sale.  
 Additionally, there are two major types of multi-touch attribution: first-touch attribution and last-touch attribution. First-touch attribution gives credit to the first marketing touchpoint as the most influential touchpoint that contributed to a sale. For example, if a customer’s first interaction with a company is by clicking on a display advertisement, then the display advertisement would be considered the most important touchpoint in a first-touch attribution model. Even if the customer went through various other touchpoints after clicking on the display advertisement, it wouldn’t matter in this model because the first touchpoint is considered the most important. Last-touch attribution is the complete opposite, where the last touchpoint is considered the most important. Let’s say a customer clicked on the display advertisement and then proceeded to a video advertisement before making the final purchase. In a last-touch attribution model, the video advertisement would be considered the most important touchpoint since this is the last touchpoint before the purchase. 
 There are other models of multi-touch attribution that consider all touchpoints equally important or weigh each touchpoint differently. The key takeaway is that attribution software allows marketers to choose from many different models to measure touchpoints and their importance. Marketers can play around with various models and choose the ones they consider most effective in their strategy.  
 Marketing mix modeling 
 Marketing mix modeling is a more complex type of attribution because it takes into account a variety of factors that contribute to a sale. The four major factors that marketing mix modeling focuses on include product, price, place, and promotion. Marketing mix modeling tries to find the optimal balance across these four marketing efforts to determine the weight of importance that should be given to each. This offers insight into which marketing channels are working and which ones are not.

Question 2

What are the Common Features of Attribution Software?

Accepted Answer

From custom attribution modeling to conversion summary reports, attribution software provides all the necessary tools to track how buyers funneled through the customer journey and converted into a purchase.  
 Attribution modeling: Attribution modeling allows users to select from a variety of attribution models. Whether it’s single-touch or multi-touch attribution, users can select from a variety of attribution models that place varying importance on marketing touchpoints across the customer journey. 
 Cross-channel attribution: It’s important that marketers are able to use attribution software to connect campaigns across channels and fully understand a customer’s journey. Cross-channel attribution means that marketers can follow prospects and understand the different steps they take across the entire customer journey.  
 Offline attribution: Offline attribution allows users to track touchpoints through offline channels such as traditional ads, marketing events, or in-store promotions. 
 Dashboards: Marketing dashboards consolidate all data on touchpoints and marketing channel performance. This allows users to view and manage this data to evaluate which campaigns are working better than the others. 
 Promotion analysis: Promotion analysis tools allow users to measure the performance of sales and promotions. By evaluating how often users click on ads that display promotions or sales, users can evaluate the effectiveness of price cuts. 
 Integrations: It’s important for attribution software to integrate with different tools and systems, like CRM software and marketing automation software, to ensure that all marketing data is being utilized across the entire marketing strategy.

Question 3

What are the Benefits of Attribution Software?

Accepted Answer

Spend optimization: Attribution platforms allows businesses to optimize spend across all marketing efforts. For example, marketers can use attribution software to pull cost data from all major ad platforms, correlate those costs to specific accounts, and then track revenue from touchpoints over time.  
 Personalized content: Marketers can utilize attribution software to present more effective personalized content to potential buyers. This software provides companies with visibility on how digital assets impact sales opportunities and revenue, which enables marketers to automatically optimize user journeys with personalized, revenue-driven recommendations.  
 Improved product development: This type of software enables businesses to improve product development through attribution data analysis. Contact-level attribution offers a unique insight into the needs and wants of customers, and this data can be referenced during product updates so teams can focus on the features and functionalities that matter most.  
 Revenue tracking: Attribution software allows marketers to accurately determine if sales and promotions are effective drivers of revenue. This type of software enables marketers to track, connect, and credit marketing efforts to their downstream revenue generation.

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