Data headache? Try Total Attribution to take the pain away
Posted on 10th July 2015
By KARL WEAVER, former CEO, Data2Decisions
We all know the story: the consumer journey has become extremely complex and the mountains of data now available to us often make things worse, not better. And whilst I’m not the first to highlight the importance of a joined up approach to data and analytics, I do offer a solution.
Much of the pain stems from marketing departments feeling paralysed by the volume of data available across their communications plan and the struggle to manage a growing list of specialist data, analytics and digital suppliers. Internally they face structural barriers and their companies are playing catch up with organisational design. Many chief marketing officers are operating in silos which makes connecting the dots (with limited visibility) downright painful.
Let me introduce that solution; a holistic modelling approach we call Total Attribution. This new technique quantifies how all your media touch points – online, offline, owned, earned, bought and CRM – connect to influence the consumer journey. It means you can optimise your media in a holistic way to drive sales or achieve other brand KPIs. From the work we’ve already done using this approach, in sectors ranging from fashion to FMCG, we know it can lead to ROI improvements of 25% – 50% which exceeds what can be achieved through a siloed analytical approach.
Take for example, a retail brand we’ve been working with in the UK which needed help rebalancing its media investment across its online and offline channels. We were able to provide insights around overall sales drivers, media performance, and the consumer journey plus granularity about the role played by digital media channels. Optimisation based on this view of the connected consumer led to a 26% improvement in revenue for this project alone.
Recent research from Econsultancy with ResponseTap further highlights how marketers are struggling with integration across channels. The study identified that a third (35%) of marketers globally saw the complexity and number of touch points across the digital and physical worlds as the main barrier to connecting the customer journey. This was followed by 38% who said the “customer journey is understood but with little management across touch points”.
A lot of this could be because analytics has struggled to measure and optimise the whole media ecosystem in the past, but by combining techniques, including econometrics and digital attribution, it can be done very effectively. By doing so we can give CMOs and their teams the big picture view of how their media ecosystem is performing and the granular insights they need to improve the performance of individual touch points. At the end of the day if you’re not planning your connected media ecosystem in this way, you’re probably leaving money on the table.