If you’ve ever tried to build an attribution model that wasn’t position-based (i.e. last click, first click, linear, etc.), you might have felt overwhelmed. But customer paths are non-linear and pretty complicated—sooo many things influence conversions.
Most businesses have a lot of data about customer behavior: the devices they use to purchase, ads, competitors’ pricing, keywords, etc. But they can’t make sense of it all.
When you’re working in a multichannel business and a big chunk of conversions happen offline, it gets even worse. You need to prove that your online marketing campaigns drive offline revenue.
Modern purchasing behavior may include:
- Pure online. Finding and buying products online.
- Pure offline. Examining and buying products in brick-and-mortar stores.
- ROPO. Researching products online and buying them offline (a.k.a. webrooming).
- Showrooming. Examining products in physical stores and purchasing them online.
If you’re measuring the efficiency of online marketing by looking only at Google Analytics orders, you’ll miss the offline orders when evaluating the efficiency of your campaigns.
Here’s how to take everything into account and build a valid, valuable multichannel attribution model.
How influential is ROPO?
The ROPO effect varies from country to country and category to category. According to DigitasLBi, 88% of consumers worldwide research products online before buying.
You can find out the percentage of ROPO purchases in your country with Google’s Consumer Barometer:
When examining the ROPO effect, traditional brick-and-mortar sales virtually vanish for certain categories. There are also categories in which they’re essential. In our experience, product categories where the ROPO effect is significant include:
- Mobile phones;
- Audio equipment;
- Digital cameras;
What drives ROPO behavior?
- Shoppers want to view the item up close.
- Need the item sooner than it can ship.
- Want to avoid shipping fees.
- Need in-person advice.
How ROPO affects attribution
Marketers struggle to consider all the touchpoints and include all informational sources, especially as data is stored in different systems and processed and updated at different speeds. Trying to bring all this data together, clean it, and merge it can feel like playing the contraption below.
You’re not alone here, at least according to Strala. Their research on the state of marketing measurement found that only 11% of marketers feel “very confident” in the accuracy of their attribution models.
And, according to KPMG, only 35% of surveyed organizations have a high level of trust in their organization’s use of data analytics.
To bridge the gap between scattered data and actionable analytics, follow these steps.
8 steps to create a multichannel attribution model
Step 1: Define your questions
Start with hypotheses, and formulate questions you want to answer. For instance, say you want to understand what share of your offline sales were influenced by online ad campaigns. Or, you may want to know at which stage in the funnel it’s best to encourage customers to make a purchase (and the best channel to do …read more
Read more here:: conversionxl.com