How to make Data-Backed Decisions
- Ensure sample is large enough
- Make sure testing is long enough
- Use appropriate attribution model
- Make sure conclusions are unbiased
Types of Attribution Models
Attribution models are the framework for analyzing which marketing channels, or touchpoints , receive credit for a conversion. There are multiple attribution models and each distributes the value of a conversion of each touchpoint differently.
Last Interaction
- The last touchpoint would get all the credit for the sale
- Simplest to implement
- Usually the most accurate
First Interaction
- The first touchpoint gets all the credit for the sale
- Best for businesses trying to get customers quickly
- Great for short buying cycles
Linear
- All the touchpoints in the conversion path would get equal credit sale
- Provides a balanced perspective of entire marketing strategy
- Shows how each channel has value
Time Decay
- The touchpoints with the closet time to the sale would get the most credit
- Great for long sales cycles and relationship building with clients
Position Based
- First and last interaction accounts for 40% of the credit, and the remaining 20% of the credit is distributed between the interactions that happened in between
- Best for businesses that have multiple touchpoints prior to conversion
