Attracting new customers is important for growing a business. Knowing where those new customers are coming from is critical for growing a business efficiently. Unfortunately, with so many platforms and an emphasis on holistic marketing strategies, it can be difficult to accurately identify which marketing channels are actually responsible for driving prospects and leads for your business.
Without fully understanding which channels are driving customer growth, increasing marketing spend will not necessarily result in more customers.
This occurs because companies often use a combination of different marketing approaches. That’s not to say a holistic marketing strategy is a bad thing – having an all-encompassing, multi-platform marketing plan is critical for reaching modern consumers where they already are. But, with more sophisticated marketing strategies comes new challenges.
Consider this: a prospective customer calls to ask a general question about a product or service and the company fails to gather any marketing-related information on that prospect during the call. There’s no way to know at that time if the customer saw an advertisement for the company on social media or has previously clicked on a display ad.
While at the time of the call there’s no consequence for a lack of knowledge about the prospect’s journey, once that prospect becomes a customer there’s a chance that misattributed return on ad spend could misrepresent the effectiveness of some marketing platforms.
This is a marketing attribution problem you may already know that you have.
There is often a delay between when a prospect sees an advertisement and when they make a purchase or request service. This time lag is one factor that makes accurate marketing attribution a sometimes-elusive goal. For example, in the healthcare industry, new patients often need to see a company’s marketing message between six and eight times before they contact a provider to make their first inquiry.1
The other factor is hinted at above. The obvious issue here is that if a prospect sees a social media ad, then watches a video on YouTube, then clicks on a paid search ad before making a $100 purchase – which channel should the value of the purchase be attributed to? This is the challenge of selecting which marketing attribution model is best for your business – deciding which will help you make the best decisions about your marketing mix and effectiveness.
But what if you don’t know that the customer that just spent $100 after clicking through to your site from a paid search ad saw that social media ad first?
This is the marketing attribution problem you may not know that you have.
What if you didn’t realize you could be missing critical data needed for accurate marketing attribution? Over 75% of marketers acknowledge that attribution is very important to their marketing campaigns’ success. Finding the right strategies to accurately track marketing ROI is mission critical.1
The Consequences of Limited Marketing Attribution
Without a proven system to quantify the marketing effectiveness of various strategies and channels, marketers are often left guessing. This can make deciding on the appropriate marketing mix challenging, as executives and other stakeholders may differ in their opinions of what marketing strategies are best. Marketing efforts will then be largely driven by anecdotal, opinion-based discussions as opposed to crafted around verifiable data from past campaigns.
This is not the high-tech, data-driven world that digital marketers want to live in.
Having an accurate method to track marketing attribution reduces the chances of sinking marketing dollars into platforms that will not generate enough new customers or sales to be viable. In addition, understanding which marketing channels efficiently acquire more customers is strategically important to position companies, products, and services. Without this information, companies can unintentionally hinder the growth of new products and services by using an inefficient marketing mix.
Generally speaking, limited marketing attribution translates into overspending on marketing campaigns that yield low patient acquisition and/or underspending in potentially more profitable (but underutilized) marketing channels.
Capitalizing on how you collect data and analyze it will be the determining factor as to whether your marketing campaigns are as successful as they could be. Having a structured system in place to track marketing ROI is a key differentiator in any industry, as you are then able to continually ensure you are on the right platforms, at the right times, with the right messages to attract new customers.
Have more questions about marketing attribution? Stay tuned for our eBook coming out later this year for all the information you’d want to know about marketing attribution, its challenges, and important best practices. Don’t want to wait? Get in touch with our expert marketers today to talk about how we can help improve your tracking and analytics so that limited marketing attribution is a problem you definitely know you won’t have.