You have a nice new website. What next?
The importance of lead attribution for House Builders
You have a nice new website. You have installed Google Analytics/Tag Manager event tracking and may even be monitoring the number of leads you are getting through your website. You may be going a step further and analysing what type of lead it is and scoring the value of the lead. But are you properly attributing the credit for that lead to the right marketing activity?
What is attribution modelling?
As Wikipedia describes it:
“Attribution is the process of identifying a set of user actions (“events” or “touchpoints”) that contribute in some manner to a desired outcome, and then assigning a value to each of these events. Marketing attribution provides a level of understanding of what combination of events in what particular order influence individuals to engage in a desired behaviour, typically referred to as a conversion.”
If you are not scrutinising your website performance with the right attribution modelling, you may be spending your budget in the wrong areas.
Under this scenario (the default last click model), most marketers will identify that the paid search ad efforts and associated spend resulted in an enquiry and as a result may continue or even increase spend on this successful medium in a bid to get more leads like this. However, a first click attribution model tells a different story; that instead, Facebook deserves most of the credit for first bringing your development to the customer's attention.
There are various models available, and here are some of the widest adopted approaches, some of which have been very well detailed by Response Tap in a recent whitepaper:
Last touch assigns 100% attribution to the final touchpoint before conversion/purchase.
Like last touch, first touch attributes 100% of revenue resulting from marketing activity to a single touchpoint – in this instance, the first time the customer comes into contact with the brand/product.
Under the linear model, every step within the buyer journey is deemed equally responsible for the sale.
The positional model recognises the fact that the buyer journey is rarely straightforward and that effort must go into both acquiring, and converting the customer. Combining elements of the first touch, last touch and linear models, it commonly attributes the most weight to the beginning and end of the journey, with every step in between credited at a lower level. Over time, as the buyer journey becomes clearer the positional model can be customised to give heavier weighting to other stages.
The time decay model presumes that the closer a touchpoint is to purchase, the more credit it should be given for conversion. Unlike the positional model, time is the key factor – the theory being that as time accelerates towards the end of the journey, the more critical each channel is in persuading the customer to convert.
A customised model allows you to take all of the best, most relevant elements of standard attribution models and set your own rules. It’s ideally suited to multi-faceted campaigns and complex buyer journeys. For example, a travel company may wish to encourage repeat bookings, for which they’ll need to nurture their relationship with the customer in different ways until the moment they buy; e.g. a one-to-one ‘welcome home’ email nurture sequence, national advertising, time sensitive and last chance deals, and loyalty/renewal campaigns, for which linear, positional and time decay methods may all be relevant at different stages.
Algorithmic modelling is the most accurate method of attribution. Unlike rule-based approaches, it’s entirely data-driven, providing a comprehensive understanding of the impact of every interaction on the end goal. Implemented correctly, it offers a much clearer perspective on consumer behaviour, and enables decisions to be made based on verified information.
If you want more information on this and how Property HQ can help you, please get in touch today.
Credits: Response Tap (2017) & Wikipedia (2019)