Closing the Loop on Sales with Attribution
Elizabeth Jackson, HookLogic, CMO and EVP corporate strategy, offers opinions on how attribution modelling can be used to combat some of the most challenging trends in retail, including ‘boomerooming’, and ‘showrooming’.
In a world where consumers increasingly use the internet to influence purchasing decisions across multiple channels, marketers must understand which online touchpoints have the greatest impact on offline and online sales, to maximise their ROI.
Shoppers use omni-channel tactics to inform purchases with nearly two-thirds (62%) of users ‘boomerooming‘ – researching online and visiting the store to view the product, before searching the internet for the best deals prior to purchase.
Additionally, half of all consumers use ‘showrooming‘, where products are perused in-store before price comparisons are undertaken online and a purchase is made. With predictions that the web will impact over two-fifths (44%) of all retail sales by 2016, it is critical for marketers to provide consumers with meaningful online interactions that are effective across both online and offline channels.
So, how can marketers make the best use of their online presence to influence consumer decision-making across all channels, and improve ROI?
1. Invest online to see improved results
A significant number of consumers research online then purchase offline (ROPO) and online advertising can result in as many as seven times the number of offline sales than online sales, so it is vital marketers take this into account when planning their digital strategies.
The purchase pathway is affected by online activity at various stages, so companies need to be clear on their business goals and invest in the following measures to ensure they are achieved:
• Brand awareness: The measurement of impressions served across a number of online touchpoints allows marketers to place their products in front of active category shoppers to ensure the right consumer sees the right items.
• Consumer consideration: Through the measurement of activities such as page views, dwell time, enquiries via web forms, online chats and phone calls, marketers are able to analyse the consumer’s journey to their product description page and take steps to drive traffic towards these pages in the future.
• Conversion: The use of true performance marketing tools allows the measurement of actual transactional data rather than using panels or projections. This provides marketers with an accurate overview of campaign successes to inform future budgets.
2. Make use of more sophisticated online attribution
Attribution’s real potential lies in assisting marketers to understand how multiple purchase path channels interact. Data gathered in 2013 revealed that implementation of attribution can propel a brand towards a 15-30% gain in media efficiency, and also offer corresponding increases in ROI.
Traditional attribution methods have focused on probabilistic approaches – based on panels or partial coverage – providing an inaccurate picture of online activity.
However, in response to an increased focus on clarity and accountability, more sophisticated attribution models are now readily adopted, including technology that enables full, transaction-based data sales tracking from arrival to purchase.
Additionally, the prevalence of big data from online interactions has helped to improve accuracy.
As a result of these developments, brands are now able to allocate investment to the online touchpoints that have the biggest impact on sales, both on and offline, to improve the efficiency of future marketing strategies.
So how can marketers use attribution models to measure how their advertising is affecting sales?
o Retain existing measurement processes – new tools should simply be added to the marketing mix.
o Employ solutions that offer full, transparent data tracking.
o Start small – it is better than not starting at all.
o Develop an omni-channel strategy and be consumer-centric – consumers rarely think ‘offline’ and ‘online’, they simply think ‘shopping’.
o Understand that the value of a sale does not end at the checkout – successful and continued interaction with consumers can lead to a vast potential for repeat purchases.
Cross-channel activities are becoming the norm in the consumer path to purchase and retail sites now offer marketers the big data needed to track consumer habits as well as the ability to target audiences at the most likely moment of conversion.
Attribution is key, but brands must first start with their business goals to determine the right measurement of success. It is vital marketers have access to advanced attribution tools to gain a clear view of entire campaigns and ensure business goals are reached.
Measuring key data across multiple channels will empower marketers to understand where their sales are originating and ensure investment is efficiently allocated, closing the loop on sales and boosting ROI.
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