By Paul Wright, CAKE
Tracking and attribution of online campaigns can make e-Commerce marketers feel like they are walking through a minefield. There are many factors to consider, and making sense of them all can be difficult and confusing, especially in today’s complex and fragmented marketing landscape. Which touch points along the customer journey are most and least influential in triggering conversions? Which campaigns are resonating well with customers and which are duds? Which affiliate marketers are adding value?
Today’s retailers can’t afford to make a wrong move. It’s essential for them to be able to capture and understand the multiple, varied sources of data that will help them make the best decisions possible. But as channels proliferate and billions of data points are generated daily, it’s easy to get tripped up. Here are three common minefields to steer clear of when developing and executing a strategy for e-Commerce tracking and attribution:
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- Too much emphasis on the “last click”: The last click before a conversion is just one part of the customer journey. But all too often, credit is only given to this final touch point. Why? It’s simple to track. But in reality, it could be the first click that has the greatest influence, or several touch points in-between. More sophisticated attribution modeling can show the impact of multiple marketing channels on a conversion, and this ultimately will help retailers better understand the value contributed by each and every touch point. Armed with this insight, they can more effectively allocate their investments.
- Focusing on the past: In today’s fast-changing e-Commerce landscape, data loses its value by the minute. The ability to capture and analyze data at lightning speed is key: Live information about what actions consumers are taking in the moment empowers marketers to adjust and optimize their digital ad spend and even modify creative strategies in real time. (For example, what is their shopping cart content? Which promotional codes are being used?) Technology’s ability to quickly process and extract useful information from raw data has improved exponentially in recent years. Businesses that don’t take advantage of real-time analytic innovations will be left behind.
- Limiting your scope: Acquiring new customers costs money and retailers want to be sure that the return is worth the investment made. Beyond conversions, tracking and attribution strategies should also take into account actions that a customer engages in after the initial sale. Customer lifetime value (CLV) — a prediction of the net profit that may be attributed to the entire future relationship with a consumer — is an important metric to consider. Armed with more insight into CLV, e-Commerce marketers can identify and reward the channels that engage customers who will be profitable to the business over the long term.
The avalanche of data generated in today’s complex and multi-faceted e-Commerce retail environment can easily overwhelm marketers that aren’t well prepared. When it comes to tracking and attribution, smart technology choices and a thoughtful approach will help retailers avoid the minefields and capture the most accurate and valuable insights.
Paul Wright is responsible for leading the European growth and expansion for CAKE, a marketing technology company. Wright has worked in the performance marketing industry since its early days, building and shaping strategies for some of the UK’s largest agencies and brands for more than 18 years.
