Retail Marketing Attribution Challenges Companies Must Overcome
Attribution measurements provide businesses with valuable information to better understand consumer behavior at every touchpoint and improve their marketing approach.
FREMONT, CA: Many businesses are employing attribution models to determine the impact of every touchpoint in today's complex customer journey. To address customer aspirations for a rich, appropriate omnichannel experience, 76 percent of marketers claim they now use or will soon employ attribution measurement. But, for retailers, it's not just the attribution model that matters, but also the quality of the data and how it's used because it can mean the difference between success and failure.
Identifying the various errors and biases that can result in misattribution provides retailers with significant insight into improving and streamlining their marketing campaigns.
The Attribution Measurement Challenges Businesses Face
Actionable, granular data is essential in modern marketing. Efficient attribution demonstrates the specific impact of every marketing element and the brand's impact and accessibility to a physical location.
[vendor_logo_first]Moving away from obsolete models that provide an unreliable or partial view of the customer journey and toward attribution models that measure both online and offline channels is required to generate this rich data.
The solution is omnichannel attribution, which provides a comprehensive view of all channels that drive engagement. Retailers may design sophisticated, effective marketing plans that address consumers with the correct message at the appropriate time and place utilizing comprehensive omnichannel information.
Common Marketing Attribution MistakesTargeting Bias
Targeting bias is another standard marketing attribution error. It entails underestimating top-of-funnel branding and messaging in favor of concentrating on short-term actions that contribute to a sale. Marketers must develop a unified marketing measurement system capable of monitoring offline to online sales to minimize this bias and accurately evaluate the effect of offline, top-funnel brand engagement.
First or Last Touch Attribution
There's a reason why this method of attribution measurement is no longer used. The whole value of the first or final touchpoint a consumer engages with before conversion is assigned to first or last touch attribution. Since the consumer experience is more fragmented than ever, measurements must precisely account for the impact of specific touchpoints and engagements on conversions. Retailers who continue to rely on first or last contact tactics are undervaluing touchpoints throughout their marketing strategy.
Cheap inventory bias is another common type of inaccurate attribution. Fundamentally, when low-cost retail goods produce more engagement, the root cause is typically easier than marketers believe: the lower the price, the more likely consumers can buy it. Customers are less willing to switch at higher price points, resulting in lesser engagement than cheaper products.
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