A Marketing Attribution Problem refers to when a marketer can't trace a lead or consumer back to a channel. The problem exists because there isn't an automated marketing attribution solution that can accurately track offline touchpoints. This is a huge problem for marketers, as it makes it difficult to know which marketing channels are driving leads and sales. Without an accurate attribution solution, marketers are forced to rely on gut feeling and guesswork to make decisions about where to allocate their marketing budgets. This is not a great tactic and causes lots of inaccuracy and doubt in making decisions.
However, Marketing Attribution Problems aren't unsolvable. In an attempt to solve this problem, marketers first look at understanding the customer journey map. These illustrate the touchpoints and paths that may have influenced the purchase or site traffic. Once you have a clear understanding of the customer journey, you can then begin to look for solutions that will help you track those touchpoints. You can also use Excel, CRM platforms, or third-party solutions to estimate the value of each previous touchpoint, however, this is neither accurate nor scalable.
The perfect marketing attribution solution will be able to track both online and offline touchpoints, as well as provide you with detailed data about each interaction. This data is essential in understanding which channels are working and which ones aren't. With an accurate attribution solution in place, marketers can make confident decisions.
Why is it important to solve the Marketing Attribution Problem?
Solving the marketing attribution problem helps marketers understand which channels are driving conversions and sales, so they can allocate resources accordingly and maximize ROI. It also helps them better understand customer behavior and develop more effective strategies for future campaigns.
How can marketers solve the Marketing Attribution Problem?
Marketers can use various tools and techniques to solve the marketing attribution problem, such as multi-touch attribution models, data analysis, machine learning algorithms, and more. Additionally, they should ensure that all data points are accurately tracked across all channels in order to get an accurate picture of how customers interact with their brand.
Fun Fact:
"The marketing attribution problem is one of the most challenging problems facing marketers today, with only 11% of marketers saying they are able to accurately measure the impact of their campaigns across channels (Econsultancy, 2017)."