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Using Attribution Modeling to Grow Your Business
- 1. Ryan Hilliard Team Leader ROI REVOLUTION, INC Leveraging Attribution Modeling to Unlock Unprecedented Scale in Your Digital Marketing Campaigns
- 2. Goal How can examining & understanding the data you have (via attribution modeling) already collected enable you to supercharge your business to new heights?
- 3. What is attribution modeling First Interactions Middle Interactions Final Interactions $ Where do we give the credit?
- 5. Why attribution-modeling is vital in PPC MORE OFTEN AN ASSISTED INTERACTION MORE OFTEN A FINAL INTERACTION The Customer Journey to Online Purchase3 DirectBranded PPC Generic PPC
- 6. The Customer Journey to Online Purchase3 GENERIC PAID SEARCHSMBs with 10-250 sales/day Retail Vertical United States Why attribution-modeling is vital in PPC
- 7. GENERIC PAID SEARCH SPECIFIC/BRANDED PAID SEARCH Exponentially more traffic is available on generic concepts Why attribution-modeling is vital in PPC
- 8. We begin to see the problem First Interactions Final Interactions $ We are heavily discounting generic concepts because of a lack of insight
- 9. AGENCY WIDE 25%the number of additional sales generic pay per click ads contributed to when comparing first & last touch models Why attribution-modeling is vital in PPC
- 10. So we need to shine a light on those first interactions First Interactions Middle Interactions Final Interactions $
- 11. …and answer these two questions How do these first touch points impact overall revenue? How can I use this information to profitably amass unprecedented scale of traffic?
- 12. Where to start? Make sure you understand your purchase funnel
- 13. Explained, visually Lasttouch(default) FirstTouch So,what’sthepoint? Use attribution data enable you to increase both top line and bottom line revenue
- 14. Where to find the data TIME LAG PATH LENGTH MODEL COMPARISON
- 15. Time lag Orders that take longer to complete are 10-20% larger on average Days 1-7 21% Days 8-30 27% Day 0 52% % of Total Sales $120 $125 $130 $135 $140 $145 $150 $155 Day 0 Days 1-7 Days 8-30 Average Order Value
- 16. Path Length $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 6 7 8 9 10 11 12 Path Length in Interactions AOV % of Sales Multiple interactions increase the value of attribution modeling
- 17. Model-comparison The model comparison will highlight changes in sales, revenue, etc.
- 18. Create a picture of your customers The time lag & path length reports show us why the model-comparison tool shows such a change
- 19. Steps to driving unprecedented scale We are going to follow Dory through this process…
- 20. 1. Determine your target KPIs for each attribution model Using the model comparison tool, establish your baseline of performance Last Touch CPA $56 First Touch CPA $32
- 21. 2. Create Performance Targets Align your targets with overall company performance If you are happy with overall performance, your current CPA works If not, adjust your CPA targets for both attribution-models Last Touch CPA $56 First Touch CPA $32 Target CPA - Last $50 Target CPA - First $29
- 22. 3. Exploit areas of high first touch interaction Target Cost Sales – Last CPA – Last Sales – First CPA – First Keyword 1 $113 1 $113 8 $14 Keyword 2 $572 2 $286 15 $38 Product ID 1 $26 1 $26 6 $4 Keyword 3 $272 3 $90 12 $23 Product ID 2 $67 2 $34 7 $10 Total $1050 9 $116 48 $21 Target CPA - Last $50 Target CPA - First $29 Target Cost Sales – Last CPA – Last Keyword 1 $113 1 $113 Keyword 2 $572 2 $286 Product ID 1 $26 1 $26 Keyword 3 $272 3 $90 Product ID 2 $67 2 $34 Total $1050 9 $116 These 5 targeted areas contribute to 433% more sales than it initially appeared
- 23. 4. Measure your impact 0 100 200 300 400 500 600 700 800 January February March April Sales Last Touch First Touch All Sources
- 24. 5. Continue to optimize & test SUCCESS More PPC sales/revenue Correlated growth in total sales Incremental traffic increases CHANGE IT UP Flat sales overall, rising cost Flat traffic, rising CPCs Analyze, iterate, retest
- 25. Curve Balls
- 26. Cross-device conversions Occur when a customer interacts with an ad on one device then converts on a different device or browser Only triggered when Google’s certainty crosses the 95% likelihood threshold Advertisers capturing the full value of their AdWords campaigns by using cross-device insights to measure up to 16% more conversions 1 The Role of Mobile Search on Store Purchases, Google/Ipsos Media CT, August 2015. 40%the number of online shoppers start their research on a smartphone and make their final purchase on a computer or tablet1
- 27. Phone tracking If more than 10% of your sales occur over the phone, consider using keyword level phone call tracking Customers that call have a higher likelihood to convert & more likely to spend more per purchase 115% The additional amount spent by people who buy products over the phone rather than online.
- 28. Inherently 2nd or last touch points Email marketing & retargeting are ways to reach users already engaged with your brand Because of their inherent nature, first touch attribution models will attribute far fewer sales to these initiatives Do not discount the value of these middle, influencing touch points & the impact they have on sales 138% The additional amount spent by people who buy products marketed through email versus those people that do not receive email offers2 2Convince and Convert, July 2013
- 29. Ryan Hilliard Team Leader ROI REVOLUTION, INC Questions?
Editor's Notes
- How can Jim take his business from $5MM to $10MM
- Attribution Modeling in a nutshell: who gets credit and how much?
- Most engines and analytics solutions attribution the full value of sales to the final interaction as a default. While this may feel like an apples to apples comparison, subtle differences and complicated sales cycles mean this will certainly fail to tell the full picture. Jim uses the default methods of tracking and is hitting his targets on the nose – any increases in CPCs mean increases in CPAs which means he is no longer hitting his goals.
- If you can shine a light on value from interactions in the upper purchase funnel, where there is more volume, you will be able to scale your overall reach, profitably.
- This report includes transactional data collected from 42 thousand Google Analytics properties with Ecommerce tracking enabled, across 8 countries, over an 11 month time period (purchase paths that concluded on 45 randomly selected dates from October 2013 - September 2014). For medium sized retailers (those with 500-10,000 purchases over the previous 45 days – or 11-225 sales per day)
- Who wants new customers? The bottom of the funnel has a finite number of searches and eventually you WILL cap out.
- Don’t let the lack of insight cause you to shoot yourself in the foot when it comes to driving new customers.
- With attribution modeling Jim understands how his ads are contributing to more than just the sales he sees and the UIs account for- logically, if his clicks go beyond what is tracked, getting more clicks could continue to have that impact. Even if the cost of AdWords revenue appears to diminish, he may be able to increase total revenue at the current cost of gross sales
- When you change your attribution model, you are not getting more sales, you are simply redistributing credit. That, in and of itself, is fairly useless. The goal should be to leverage that new attribution model to drive more sales overall!
- Understand the number of days to purchase and how that often correlates to differences in average order value.
- The number of interactions with a user also paints a rosier picture for AOV when they do buy.
- Understand the differences using the tools already available to you to know what to expect when you shift your model completely. This can also serve as a way to keep your apples to apples comparison in place to prevent you from simply redistributing sales.
- Again, the focus is fining more sales!