Marketing measurement is all about understanding the purchase path of consumers that have converted, the value of those touchpoints, and optimizing your marketing budget. But it can be far more than just identifying which touchpoints and ads lead to sales.
It is also important to consider if your high-performing touchpoints are also giving you the highest value customers and how you can reach more consumers that are similar to your best.
What if you identify several online channels and specific ads that lead to high conversion rates, but then realize that those purchasers are actually not very valuable customers? A typical attribution analysis might show an optimal cost per conversion, but if your assessment of the ROI of the converters is not what you had hoped, you might want to rethink your ad strategy.
Once your attribution analysis reveals which of your touchpoints and ads are performing the best, you can then determine which ones are bringing in the most valuable converters (highest sales, frequent transactors, or other metrics as defined by the company). From there, the question is, can you reach more of the same kinds of customers?
That’s why incorporating segmentation into your attribution analysis is key.
Reach More of Your Best and Optimize Your Media Budget
As part of an attribution analysis, marketers can use economic-based segmentation to profile high-value converters in terms of their likely financial capacity to purchase, products and services that they may be seeking, demographics, and more.
For example, if segmentation shows that the most profitable converters are likely to have high invested assets, high income, be in the market for a specific product or service (i.e. travel experience, credit card, automobile, luxury item), and be Gen X families. Marketers can then use digital targeting segments to reach prospects with the same characteristics, either on existing online channels or to test new digital channels.
Segmentation overlaid on attribution can help marketers reallocate their media budgets to reach more of their desired customers. Advertising on a premium channel may be worth the expense if segmentation shows that converters are likely to have a high capacity to purchase and be interested in your product or service. Meanwhile, advertising on more economical sites may be a wise choice if segmentation shows that converters have a more moderate capacity to purchase and the cost of conversion is lower.
Attribution analytics can help predict how consumer intent will take shape over the course of media journeys, based on how upper funnel media touchpoints transition users from disengaged to aware and beyond. Segmentation can then be used to round out a picture of desirable customers, including economic capacity, to inform which channels, messages and offers are most appropriate for various consumer groups.
Capabilities and Connections
Segmentation combined with attribution helps marketers differentiate and evaluate touchpoints in terms of customer value and characteristics, as well as optimize media budgets to expand reach to desired consumer segments.
Working with a company that offers both of these capabilities – sophisticated economic-based segmentation and a full-scale attribution solution that uses advanced analytics – makes sense. In addition, as you consider attribution partners, also investigate the extent of their industry connections with online publishers, leading mobile providers, and cable companies, as these relationships enable robust identity management and linking capabilities to help you efficiently execute and track your campaigns. At the end of the day, seek out a partner that can deepen your understanding of which channels and customers are truly driving your business.
More information on Marketing Measurement from Equifax