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Keeping Attribution Simple For a DTC brand who only sell via their Shopify site attribution can be fairly simple.
Track performance via Google Analytics, and also the individual marketing systems. The difference in sales volume reported in each for each channel will give you some idea of the overlap.
Then set an ROI target for each channel that takes into account the overlap and enables you to hit overall profit targets.
Review the settings every season or quarter.
Dealing with Cross Channel Attribution Bringing in off line marketing (catalogues, TV, radio etc) makes things more complex.
If you want to understand the sales driven by each off line channel you can’t rely on the customer telling you where they came from via offer codes, unique urls, or surveys (do NOT use surveys in the checkout). Google Analytics isn’t going to give you the answer either.
You’re going to need to invest in a software system or consulting service expert in crunching this data (eg Tapestry or Unifida).
With such systems you’ll unlock a lot of extra data that takes attribution to another level – Customer lifetime value tracking (CLV) and new vs returning customer analysis.
Making Attribution More Useful Basic attribution (where did this order come from) often isn’t worth going past the Google Analytics level for.
There are 2 extra angles that can be brought into attribution analysis that make investing in attribution systems more attractive.
1. Customer Lifetime Value / Repeat Purchase Rate Tracking how much a customer is worth to you over their lifetime BY MARKETING CHANNEL can be ground- breaking for your marketing spend and strategy.
For example if you know that customers recruited via Google Shopping Campaigns tend to only buy once you can either (a) increase your profitability targets for that activity so that you make a profit on the first order or (b) improve your repeat purchase marketing with better post-purchase email campaigns and remarketing ad campaigns.
For example, if you know customers recruited via Facebook Ads tend to buy twice as often as any other channel then you can invest a lot more in that channel. Lower your first order profitability target, increase budgets, expand targeting.
2. New Customers / Repeat Customers Especially after a year like 2020 it’s good to get to grips with how your marketing channels have driven new and repeat customers to buy.
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Then you can leverage the most effective marketing to drive either new or repeat purchases depending on your current objectives.
It’s not just about marketing channels… Just when you thought it couldn’t get more complex….
If you’ve decided that better understanding what drives your customers to buy is going to be a key part of your 2021 strategy… you also need to consider the different purchase channels.
• Marketing channels = email, ppc, catalogues, social media etc
• Purchase channels = your website, physical stores, marketplaces (eg Amazon)
Each purchase channel will have its own cost per order, its own mix of marketing methods, and repeat purchase behaviour. Therefore it should be analysed and have it’s targets set separately.
Marketplaces in particular usually require a different set of profitability targets because driving repeat purchase is usually outside your control.
Building an attribution system that reliably answers your questions is hard. Don’t expect it to be a quick journey, there’s a lot of exploration and testing to be done to get it giving you the data you need.
Please do send in your questions! Send to
editorial@directcommerce.biz
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