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Stop Guessing & Get Smart with Lead Attribution

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With increasing pressure on marketers to show the return on their digital marketing investment, it is imperative to set-up the right measurement infrastructure and optimization strategy for success. …

With increasing pressure on marketers to show the return on their digital marketing investment, it is imperative to set-up the right measurement infrastructure and optimization strategy for success. Attribution empowers marketers to understand which touch points (first, last, or anywhere between) are the most influential and cost-effective in moving a lead down the sales funnel. 1. Measurement a Top Challenge 2. Understanding the Customer Journey 3. What can Attribution do for you? 4. Tie Search Marketing Data to your CRM. Webmarketing123 is a Bay-Area Digital Marketing Agency. Our distinctive approach: pair a metrics-rich methodology with an understanding of our clients’ unique business goals and challenges. We combine a deep expertise across industry verticals, smart use of automation, and efficient use of analytics to inform data-driven decision-making. At Webmarketing123, each client has a dedicated team employing Search Engine Optimization (SEO), Pay Per Click (PPC) advertising, and/or Social Media Marketing (SMM) to create remarkable, results-driven marketing programs.

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  • Savvy marketers understand that you don’t capture your audience with just one message, just one pretty picture, or just one perfectly placed advertisement. It’s a complex process of planting the seed, nurturing it, and finally harvesting the fruits of your marketing efforts. So when it comes to giving credit to the various elements of your marketing program – and, equally important, to making plans for your next campaign – it’s essential to take stock of all the factors that are affecting your results.
  • But first, a word about us…
  • The promise of digital is that every click, every interaction can be measured and assessed. The reality…
  • The marketers we speak with every day tell us either that they don’t know exactly what metrics to measure, or they don’t know how to intrepret the results they’re seeing- “separating the signal from the noise”, and translate them into executable actions. Data about paid search is in one place, organic search is hard to tease out of Analytics, and though we know Social and other referrals play a role, it’s often not the last click before a sale, so we don’t know how to put a dollar value on it. One thing we know for sure is that we’re all adjusting the the new reality: another way to fall behind competitors is failing to measure and use analytics to maximize the efficiency of digital marketing both within and across digital channels. That’s what today’s presentation is about.
  • Our annual survey of marketing professionals consistently reveals that measurement and optimization are top priorities but also top challenges.
  • We’re about to release our 2nd annual digital marketing survey, and here’s a sneak peak at one of the findings. Marketers continue to find it challenging to precisely measure the impact of individual channels. But attribution is at a greater level of complexity- where we evaluate the relative contribution of different channels on an eventual sale or conversion.As digital marketing budgets continue to grow, more concrete revenue expectations are being put on marketing departments. In this environment, marketers are turning to Marketing Attribution to give them visibility into their successes and failures and everything in between. We believe that the industry is just now coming to an inflection point – digital marketing has matured, and digital measurement is catching up.
  • Let’s explore an example in some depth…
  • At the early stages of my research process, I might go to a trusted resource and visit a handful or even a dozen hotel websites from here.
  • Google is another trusted authority, and users assume that a site ranking highly on search terms is worth a look. I visit a number of hotel websites from here as well, including a few that I saw on Fodor’s.
  • This trip is some months off, and I might notice a mention in one of my social feeds. Someone “liked” Hotel Le Petit Paris, and I visit that site a third time. Still not buying. I’m generating data in that hotel’s analytics but I’m still in my research process,
  • This hotel also utlizes Adwords so I see them here and visit a fourth time.
  • Maybe they use retargeting and so I see their display ad when I visit cnn.com or any of thousands of other websites in Google’s Display Network. Actually, even without retargeting, I might see this ad, based on my previous keyword search, or by virtue of having visited Fodor’s, a travel website. But in any case, I clicked on this display ad and visited the website a 5th time. Still not making a reservation, [CLICK] but I did click deeper into their site and noticed how close they are to Notre Dame and the Louvre. I’m developing a preference for this Hotel.
  • This
  • Finally I make up my mind and make the reservation. Later we’ll address the more complex situation of B2Bs, where the conversion is only a waypoint, and the sales staff has to further convert a download or trial into a contract. But for now, let’s stay with this e-commerce example.[Alex, if it’s past 10:25, you should accelerate a bit]
  • We’ve got many touchpoints, and here lies the challenge, and the opportunity, posed by attribution. In an ideal world, we would be able to measure the relative impact of each touch. Then we could divide the value of a conversion across the channels in such a way that we could evaluate the relative ROI of each investment. And we would reallocate spending to maximize efficiency. What might that look like? For this we turn to what’s called “attribution modelling”
  • Simplest is giving each touchpoint equal value… This may look like it wouldn’t tell you anything, but when all customer journeys are aggregated, a composite picture will emerge, and this model won’t exaggerate the influence of a particular touch.For the moment, we’re putting aside the question of how to implement this and we’re just exploring different schema for attribution modeling. For simplicity’s sake, the blue column graphics we’re viewing just have 5 touchpoints. When implemented, it would attribute value across any number and combination of touchpoints generated by a customer.
  • The most common approach is to give all the credit for a conversion to the last known campaign touchpoint, the “closer”. This “last touch” approach has its limitations- specifically it gives too much credit to Direct, since by the end of a customer journey, the customer often knows your website URL and just types it in- Still, this is the touchpoint that led to the conversion, and the remedy is to just filter out the direct or a % of the direct. According to a study by eConsultancy and Google, more than half of marketers continue to rely on this measure, and for good reason. It’s the most accessible, and arguably the single most important click.
  • First Touch: In this type of attribution modelling, the earliest known campaign touchpoint gets the credit, and we might call this the “Introducer”. This corresponds to the top of the traditional sales funnel- discovery or awareness. And there are virtues to this- it emphasizes the ‘true” acquisition, but issues with the duration of cookies make it harder to know if it’s REALLY the first touch. Plus, you can see in your own analytics how frequently a purchase comes after a single touch- it’s often none.
  • [there are animations] Another variation is giving more weight to first and last touches, the introducer and the closer, an inverted bell curve. By weight we could mean numerical scoring, or at a more sophisticated level, if we had revenue data (more on this, later) we could divide the value of the particular conversion across the particular touchpoints in proportion to our weighting. So in this example, [click for animation] a $10,000 conversion might be divided up $375 –$83 - $83 -$84 - $375. Or, omitting the direct in this case, [click for animation] we’d see values of $6,250, 1,250, 1,250 and 1,250.
  • But perhaps more sophisticated is giving more weightto later touches- interactions closer to the time of purchase or conversion.
  • And finally, you might create a custom weighting based on an understanding of relative impact derived from some other source... For example, touchpoints identified by surveying customers which factor or factors most influenced their purchase decision. But customer testimony is heavily influenced by collection point and method, and can be quite unreliable.
  • Which model is right? It’s not that simple.For your particular business, it MAY be evident that one model is appropriate. Or it could be prudent to compare the results of two or more models and test them against reality and with experimentation by reallocating spend where the aggregate value is greatest.But the reality is that everyone has to start where you are, and find a sustainable and manageable approach to gathering, interpreting, and then actually applying what you find to enable your company to make data-driven decisions. Whether by exporting data from Analytics and using a spreadsheet macro, or working with an agency that uses this kind of calculation to improve multi-channel digital marketing campaigns, this is the direction that marketing is headed, and there’s a lot of research and development happening right now towards expanding attribution to better integrate online and offline campaings. But there’s plenty to gain just from evaluating digital. On that note, let’s get to what you’ve been waiting for, what can effective attribution tell you? I’ll answer this with the results of a recent survey by eConsultancy & Google.
  • More than half of attribution users (whether clients themselves or agencies like ours) identify digital marketing channels whose success justifies increasing spending. 10% of respondents identify channels to decrease spending. That’s a lot of cross channel optimization that is otherwise not happening. The upshot is that marketers not implementing attribution are less efficient and over time, will fall behind.
  • Let’s consider some additional benefits of attribution.[when you mention the fourth one, about obtaining budget] At many organizations, attribution gets political. Redistributing budget is a necessary byproduct of understanding the interplay of channels. Changing the status quo can be difficult (though necessary), especially at organizations where compensation is tied to the size of budgets and bonuses. But for the long term success of your company, better to shift to a budget allocatioin based on performance, and attribution is how you’ll get there.
  • We’ve been looking specifically at cross-channel attribution. But there’s also attribution within each channel. Which social platform is driving more leads, or more profitable leads? And what about Search marketing?As we all know, some channels are harder to measure than others. The problem with accurately attributing the value of organic or paid search is that marketers typically rely on Analytics, which stops at the point of conversion. If you’re in e-commerce, that’s ok, but Analytics doesn’t reflect what happens next in your CRM- Salesforce or what-have-you. Which leads are more likely to become opportunities? Which opportunities become closed deals? It could be that social-influenced conversions are more likely to advance to contract than paid search-influenced conversions. Or vice versa. In the models we were looking at, each channel was treated uniformly, but at this level of analysis, we see high performers and low performers.Now, this isn’t revolutionary. Tracking the revenue implications of Paid Search all the way from keyword bidding to closed deal in the CRM has been possible for years, via a Salesforce plugin that shows you what Paid Search terms are associated with a lead in your Salesforce CRM. But that tool is being phased out, and there has been none for folks who came to you through organic search.
  • When you have this data, you get actionable insight into where SEO or paid search efforts should be focused. This allows you to close the loop and actually optimize your Search Engine Optimization Campaign. Sounds redundant, but it’s not… I mean that you regularly refocus efforts on the top performing keywords, based on what is actually driving revenue [briefly highlight some learnings.]
  • So many clients asked us for help in understanding the ROI of Search Marketing, that we decided to build our own tool to track and measure the revenue impact of organic and paid search. [explain how it works]… The set-up is straightforward. A tracking tag needs to be added to all ads, landing pages, and your website, to capture all the customer touch points. Our tool makes the most relevant search data – the key touch - appear in your CRM, linking specific search terms with leads, opportunities and deals so you can put a value on the whole pipeline associated with a search term, or just closed deals. Any report your CRM can produce can now provide this essential and missing insight about the business impact of your search marketing.
  • We don’t have time today to go into depth about this, but we should mention that it is possible to put together everything we’ve discussed today… to integrate a cross-channel attribution approach (the earlier section on modelling) with the single channel attribution that ties search terms to revenue incorporating data from your CRM. This is Full-touch, advanced attribution. Again, we couldn’t find this in the marketplace and so we built this for our clients. We’ll take a deeper look at this in future, but feel free to contact us if you’d like to understand more about it.Introducers are the “First Click”. Conversions are the “Last Click”, and Influencers are the mid-funnel touchpoints. This kind of attribution allows teams to close the loop and actually optimize your multi-channel digital campaigns. Refocus SEO efforts on the top performing keywords. Compare the influence of different paid and social campaigns head-to-head. Cut through the politics and silos and start to have conversations based on data.
  • Finally, attribution only makes sense in the context of thoughtfully constructed goals and strategy[when you get here] Proactive analytics means developing a custom analytics dashboard that measures the variables by which you will determine changes to your marketing mix. Instead of consulting Analytics as if the answers are there, structure your view of Analytics such that it answers the questions you need to allocate your budget properly over time.
  • [bonus slide]Our clients tell us every day about the challenges they face in implementing rigorous measurement and attribution, and we specialize in helping companies develop a data-driven decision-making process through agency-client partnership.
  • “Cost of the Problem” Analysis: Discover the cost of not ranking in the top positions on search engines. How much revenue is being lost to competitors with the best rankings? Take a hard look at your competitors: Find out where you rank against your top competitors and what tactics they’re employing.Comparison of different digital strategies: Paid Search, Organic Search, Display Advertisiing, Social Media Marketing.

Transcript

  • 1. Stop Guessing and Get Smartwith Lead Attribution Alex Dunks Search Marketing AdvisorA journey of a thousand dollars begins with a single click @webmarketing123
  • 2. Digital Marketing Agency specializing inSEO | PPC | Social Media | Website DesignSince 2004, we’ve employed a metrics-basedapproach to converting online visibility intomeasurable business results.• Custom KPI-based Scorecards• Dedicated teams• Proprietary Attribution Tool @webmarketing123
  • 3. Agenda1 Measurement a Top Challenge2 Understanding the Customer Journey3 What Can Attribution Do for You?4 Tie Search Marketing Data to Your CRM @webmarketing123
  • 4. Digital is measurable. @webmarketing123
  • 5. Digital is measurable.Analytics are noisy. @webmarketing123
  • 6. Measurement & optimizing are the topchallenges for in-house digital marketers W @webmarketing123 e
  • 7. Measurement continues to be the greatestfrustration for digital marketersWe surveyed over 500 marketers in our 2012 State of Digital Marketing Report* 2 in 10 Are frustrated with PPC measurement 4 in 10 Couldn’t measure impact of SMM 7 in 10 Are unable to accurately attribute SEO ROI * Survey Report to be released In late August @webmarketing123
  • 8. What is Attribution?Attribution is a process for assigning/creditinga lead or conversion to a specific set ofmarketing activities or touchpoints. @webmarketing123
  • 9. Agenda1 Measurement a Top Challenge2 Understanding the Customer Journey3 What Can Attribution Do for You?4 Tie Search Marketing Data to Your CRM @webmarketing123
  • 10. 0 I’m going to take my wife to Paris for our 10th anniversary… @webmarketing123
  • 11. 1 Referral from a travel website @webmarketing123
  • 12. 2 Organic Search “boutique hotel Paris” Boutique hotel Paris @webmarketing123
  • 13. 3 Referral from Twitter, or a Social result on Bing Facebook /Bing Integration @webmarketing123
  • 14. 4 Paid Advertisement on Search Engine @webmarketing123
  • 15. 5 Display Ad @webmarketing123
  • 16. 6 Branded Organic Search “Hotel le Petit Paris” @webmarketing123
  • 17. 7 “Not Provided”This time I visited the website while loggedinto Google so my visit shows up in Analyticsas “not provided”- with no identified source. @webmarketing123
  • 18. 8 Direct: I typed in: “Hotel le Petit Paris” @webmarketing123
  • 19. 9 Purchase! @webmarketing123
  • 20. Which Channel Gets the Credit?1 Referral - website2 Organic Search (non-branded)3 Referral - Social4 Paid Ad5 Paid Display Ad6 Organic Search (branded)7 (not provided)8 Direct @webmarketing123
  • 21. Which Channel Gets the Credit? Linear- all equal @webmarketing123
  • 22. Which Channel Gets the Credit?1 Referral - website2 Organic Search (non-branded)3 Referral - Social4 Paid Ad Last Touch5 Paid Display Ad6 Organic Search (branded)7 (not provided)8 Direct @webmarketing123
  • 23. Which Channel Gets the Credit?1 Referral - website2 Organic Search (non-branded)3 Referral - Social4 Paid Ad First Touch5 Paid Display Ad6 Organic Search (branded)7 (not provided)8 Direct @webmarketing123
  • 24. Which Channel Gets the Credit? Custom$10,000 Conversion: $3,750 $830 $830 $840 $3,750 $10,000 Conversion: $6,250 $1,250 $1,250 $1,250 @webmarketing123
  • 25. Which Channel Gets the Credit? Funnel-Position weighting @webmarketing123
  • 26. Which Channel Gets the Credit? Custom @webmarketing123
  • 27. Which Channel Gets the Credit?1 Referral - website2 Organic Search (non-branded)3 Referral - Social4 Paid Ad5 Paid Display Ad6 Organic Search (branded)7 (not provided)8 Direct @webmarketing123
  • 28. Agenda1 Measurement a Top Challenge2 Understanding the Customer Journey3 What Can Attribution Do for You?4 Tie Search Marketing Data to Your CRM @webmarketing123
  • 29. What can Attribution do for you? @webmarketing123
  • 30. What’s at Stake?You can’t optimize your overall media mixor individual channel strategy unless youunderstand how each marketing channelworks and how the overall program workstogether. @webmarketing123
  • 31. What’s at Stake? @webmarketing123eConsultancy, Feb 2012
  • 32. Agenda1 Measurement a Top Challenge2 Understanding the Customer Journey3 What Can Attribution Do for You?4 Tie Search Marketing Data to Your CRM @webmarketing123
  • 33. The key to digital marketing isknowing which channels are themost effective for your business.But you can’t properly assess your SEO and PaidSearch Campaigns unless you can link keywordsearches to closed deals. @webmarketing123
  • 34. Can you track revenue attributed tospecific search terms? @webmarketing123
  • 35. KeyTouch Attribution ToolSearch data + CRM = Understanding Search ROI @webmarketing123
  • 36. Attribution shows you which marketingchannel led to closed deals, directly inyour CRM, and allows you to startrefining marketing program allocationbased on actual revenue instead of justconversions. @webmarketing123
  • 37. Attribution enables data-driven decision-making @webmarketing123
  • 38. Attribution only makes sense in thecontext of goals and strategyGOALSFirst, define what winning looks like • What are your business objectives and desired outcomes? • Proactive vs. reactive analyticsSTRATEGYNext, select the best channels to achieve these objectives • How long is your sales cycle? • Where do your leads come from? • What do you know about previous successes?MEASUREMENTThen, set-up a framework for understanding performance • Identify KPIs • Develop ongoing scorecard • Create benchmarks and projections – Including revenue attributed by channel @webmarketing123
  • 39. Barriers to Attribution / Keys to Success @webmarketing123
  • 40. Key Takeaways• Adopt a measurement mindset. Data can make you a hero at your company.• Ask your in-house team or agency how they are currently measuring success.• Make sure your measurement framework generates actionable intelligence.• It’s not enough to know which channels are generating the most leads. Which are contributing the most revenue? @webmarketing123
  • 41. Speak with one of our Analysts Schedule a 30-minute complimentary consultation that includes: • Free SEO check-up for your website • Help identifying custom metrics and measurement framework • Comparison of Paid Search vs SEO for your company • Learn what it’s costing not be ranking high on GoogleRequest a Consultation: seo@webmarketing123.com | bit.ly/wm123seoConnect with the Host: Alex.D@webmarketing123.com @webmarketing123 webmarketing123 facebook.com/webmarketing123 @webmarketing123