How Do You Pick the Right Attribution Model for Your Ecommerce Business?
The challenge is figuring out how to properly attribute sales in a world filled with non-linear customer journeys. Since every buying cycle is different, attribution models aren’t a one size fits all solution. Let’s go through six major attribution models and see how to use these models in Google Analytics.
First Click Attribution Model
Example: Use First Click to measure the success of reaching a new audience, like running promotional ads on Facebook to generate buzz about a new product.
Last Click Attribution Model
Example: Use Last Click to measure the success of an email campaign. Say you run a campaign to your current customers with a promo code for 20% off and make $10k. All of that revenue would accurately be attributed to Email using Last Click Attribution.
Last Non-Direct Click Attribution Model
Example: A customer clicks on a Display Ad and previews a product and then leaves. Three days later they enter your URL directly into their search bar and make a purchase. Last Non-Direct Click would attribute the conversion to your Display Ad.
Unless you work for a brand that has universal recognition (like Nike), it’s safe to assume that most of your customers heard about your brand a few days or weeks before going directly to your store. Direct Traffic is when a customer enters your URL directly into the search bar and navigates to your site immediately.
The majority of the time, customers are circling back from a previous channel. This model places the credit with the channel that most likely should be attributed with a sale.
Linear Attribution Model
Example: A customer finds your store through Organic Search, then joins your email list and clicks to your store from an email. Two months later they are retargeted by a Facebook Ad and go to your store directly. A week later they see a Display Ad and make a purchase. The Linear model would give equal credit to all five channels.
Position Based Attribution Model
Example: A customer wants to buy a bicycle online. They run an Organic Search and click on a link. From your site they join your email list and click on a link in your email. After that they are retargeted on Facebook, and continue to research your store by directly going to your blog. A week later they see a Display Ad for your bikes and make a purchase. In this example Organic Search and Display Ads would receive the majority of the credit, and the middle three channels would receive partial credit.
Time Decay Attribution Model
Example: Time Decay is meant to give credit to the channels that helped your prospect reach the conclusion to buy. If you use clear calls to action and a coordinated journey, this method can help asses the effectiveness of moving customers through a buying funnel.
Where do you change the attribution model in Google Analytics?
Log in to Google Analytics and go to Conversions > Attribution > Model Comparisons. From here you can switch your attribution model and see First Click vs. Last Click or Position Based vs. Linear etc.
Short Sales Cycles: First Click, Last Click
Long Sales Cycles: Linear, Time Decay
Learn About Channels Good for Customer Acquisition: First Click, Position Based
Learn About Channels Good for Repeat Purchasers: Linear, Time Decay
Measure Brand Awareness: First Click, Linear, Position Based
Measure the Decision Factor: Last Click, Last Click Non-Direct, Time Decay
Glew’s Attribution Model is Built for Ecommerce
Using a tool like Glew, in conjunction with Google Analytics, means you can see a comprehensive view of all of your channel activity as it relates to sales. For stores looking to get to the next level, it is a competitive way to keep ahead.