Dynamic attribution – the new challenge
Every customer journey is different, in need of being evaluated individually and represents the future in the context of customer communication.
While currently the well-known “last-click-counts” model (the last contact determines the attribution of the actual conversion) is still taken as a starting point, it can no longer be the future of customer communication.
The reasons are as follows.
The digital attribution allows to evaluate in real time marketing channels in terms of their campaigns-performance and equip them with the suitable budget. For this purpose, strong attribution models are needed, which are then enriched adequately with customer data. In the analysis, the best conversion funnels are processed, evaluated and edited for an optimal equipping.
Customer journey – long-term customer relationships and customer contacts
The reasons why a dynamic attribution model makes sense are self-explanatory: dynamic means having a real mapping of the customer contacts through which a conversion has taken place and, based on this, make informed decisions on budget allocation.
According to current customer journey analysis, it appears that the average customer journey in digital information and conversion process reaches between 25 and 70 touchpoints. How fair would it really be to attribute the conversion to the last contact, even though there were a lot of other information, advertising, content topics, recommendations etc.? And how fatal can it be if, on the basis of this one-sided assessment, one decides to forego certain touchpoints?
In recent years, it has been shown that static models can be implemented quickly and these can provide the management with a valid assessment of success and failure in performance marketing. However, validity does not always correspond to reality, and this is exactly where the topic of dynamic attribution begins.
Clustering data together as the first step of a digital strategy
To begin with, sufficient data is required for the setup, but not only in terms of quantity, but also granularity and history are important. In addition, companies and departments are not always aware of what data is available or not available. Therefore, it is important that any data source (such as website, mobile/smartphone, e-commerce, newsletters, etc.) related to the user can be consulted during the analysis in the dynamic customer journey. Depending on the company, a large amount of data can be available, which must be channelled and interpreted. It is important that a concrete success is measured, as the budgetary optimisation of results is a central component of dynamic attribution. The digital channels offer in comparison to the offline areas (TV, radio, print) the best conditions in this context.
Starting point and development of the dynamic attribution
Before starting with a suitable system evaluation for the dynamic attribution, it is important to evaluate the different providers and to analyse what is to be covered in the implementation. The aim of a dynamic model must be to ensure the complete entry and mapping of the actual customer journey as soon as possible. In this context, different target groups – such as new and existing customers but also the so-called leads – are to be captured in an attribution model according to the monetary evaluation within the channels and with the corresponding points of contact. The actual basis is to provide a large amount of data for modelling.
What happens then in dynamic modelling? The overriding goal for the company is to implement an entire system process, which continuously aggregates different data sources (active usage and purchasing behaviours, CRM data, contact points, channels, etc.). This data-driven and constant mapping of the customer journey leads to a specific attribution approach, which, similarly to an artificial intelligence, continuously learns and adapts. The real-time component as well as cross-device measuring are among the biggest challenges that need to be overcome. As soon as the integration has been successfully completed, targeted and dynamic budget optimisation – within the conversion-relevant media channels – can take place based on the new foundation.
123Consulting offers, together with its technical expertise in the field, the optimal support in the whole process as well as in individual work packages. We make sure that a comprehensive onboarding is done and all relevant business units are involved. Subsequently, we take on the entire tendering and scorecard evaluation in order to find the right partner, which is then implemented together with the customer.
Steps in the project management:
Basis & tendering
Understanding of the basis and definition of the stakeholder, construction/set up of information requests, despatch to the provider and evaluation of the first details, customer presentation.
Setup & implementation
Finalisation of details, final point of contact and despatch to the suitable providers, roadmap to implementation.
Fixing provider & test phase
Test phase and fixation of channels/media, implementation of the tool, pilot campaign, evaluation and learning.
Key learning & next steps
Evaluation of campaign orientation, consolidation of modelling as well as further integration, setup for the operative deployment.