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Why Teradata

Multi-touch attribution provides deeper insight into buying behaviors.

Understand the Customer Journey

Multi-touch attribution provides deeper insight into buying behaviors.

The marketing industry is being redefined by changing consumer habits, virtually unlimited choices for advertising placement and greater access to customers through a variety of channels. As a result, many businesses are actively shifting the balance of their marketing initiatives from outbound channels to inbound, interactive campaigns such as search, mobile apps and social media.

This shift has created the need to understand the complete customer journey across owned, earned and paid interactions. It has also raised the bar in marketing analytics to not just simply see what touch generated a sale, but to understand the interplay and influence of marketing efforts. This level of insight demands technology that can move at the pace of marketing, work at a granular level and deliver game-changing results.

More marketing is not necessarily better—it can quickly sound like useless chatter. With new analytic capabilities, marketers can cut back on quantity and instead focus on quality in an integrated series of marketing investments that harmonize together to drive higher conversions, profits and customer satisfaction.

Multi-Touch: The New Norm

Attribution is the foundation of optimized marketing performance. There are two types of attribution:

  • Single-touch attribution is usually based on the first-touch or last-click in the customer journey, such as a phone call, store visit or direct mail piece. This simple and often readily available method has been the most common even though it ignores the richest trove of marketing treasures found in the multiple touches, channels, devices and screens that make up the reality of today’s customer interactions.
  • Multi-touch attribution looks at all the customer’s known touch points and is viewed as a Holy Grail of attribution. Historically, this has been out of reach for most marketers due to cost and complexity. But thanks to new technologies, big data analytics and increased awareness of the importance of customer information across screens, channels and engagements, multi-touch attribution is becoming the new norm.

To provide the greatest efficiency and value, any multi-touch attribution application must be comprehensive to include the growing number of customer touch points. It must also quickly incorporate vast amounts of available data, analytics and insights into operational business processes that transform go-to-market strategies and tactics.

When sophisticated algorithms are used to analyze prized data from weblogs, search engines, and social and mobile engagements, organizations gain deeper understanding and greater flexibility in how they value interactions—and a more accurate reflection of the customer to improve planning.

Savvy marketers know that every customer impression can impact other channels. Display ads and email have an indirect lift on search, for example, while mobile search is often linked to immediate in-store purchases. Granular multi-touch attribution can illuminate and visualize these patterns to provide better information that allows organizations to:

  • Reduce non-productive spend
  • Shift budget to higher return on investment (ROI) opportunities
  • Optimize the impact of multi-channel campaigns
  • Measure the impact of social interactions

Customized for Competitive Advantage

Multi-touch attribution is an analytically driven competitive advantage that is fundamental to optimizing marketing spend, mapping the customer journey and amplifying return on marketing investment (ROMI) or return on advertising spend (ROAS).

As the value of multi-touch attribution becomes clear to marketers, they are seeking out sophisticated solutions that provide extreme flexibility. Teradata Aster delivers a solution that simplifies the analytical heavy lifting without sacrificing advanced analytic functionality. The solution offers these customizable multi-touch models:


UNIFORM WEIGHTING

Every touch on the customer journey gets equal value with uniform weighting. For example, with five interactions, each touch is assigned a value of 20%. Although each interaction is weighted the same, a lot of analytics can be employed, such as adjusting the time windows from seconds to months, and fine tuning and qualifying interaction types, durations and actions.

These seemingly simple modifications can significantly improve the results of the attribution analysis. For instance, an email click that leads to a bounce can be excluded while other clicks are included. This is often a good place to start doing marketing attribution analysis.


EXPONENTIAL DECAY-DRIVEN ATTRIBUTION

Nurturing audiences quickly through the conversion funnel is critical to driving business performance. With exponential modeling, the value of successive touches increases closer to the point of conversion.Later touches have a higher weight, so earlier ones have less impact. With this model, if an email drove the initial site visit but the conversion came after an organic search, the search gets a higher fractional share of the credit for the conversion.

As a first step in considering decay, the time and number of interactions are used when determining the path to purchase. Analysts derive business value by defining a set rule for the decay rate of every interaction and creating a model that reflects marketing efforts over time. Iteration and testing of this model develops accuracy so that analysis does not need to be performed on every interaction.


PRECISION CUSTOM WEIGHTING

Sophisticated users can perfect their models by customizing the weights associated with each interaction. This enables them to give different values to various touch points. Weighting can be driven by order, quality of the engagement and other criteria. For example, users can place greater weight on the first and last clicks.

Customizable weighting allows analysts to integrate deep business knowledge into the models. Analysts can also deliver models more closely aligned to the business and develop highly sophisticated models without significant customization. Uniform and exponential models deliver a high degree of flexibility while employing adjustable parameters, windows and selection criteria. This lets users improve modeling accuracy with more precise time windows, tracked events and time-based value.


A TRIO OF INTEGRATED SOLUTIONS

Combined with a data warehouse from Teradata and the Aprimo Integrated Marketing Management (IMM) application suite, the Teradata Aster multi-touch attribution solution enables organizations to make quick, accurate decisions about which customers to target for specific campaigns via their preferred channel of communication.

The solution captures and analyzes customer data, and the results are entered into the data warehouse where they can be shared across the enterprise. Then, the Aprimo IMM software leverages those unique insights for campaigns that communicate with customers in the best way possible. For example, it’s not enough to know that homeowner John Doe lives in Atlanta, with three sons under 15 years of age, two Great Danes and a passion for tweeting about college football. It’s critical to know that Mr. Doe makes buying decisions from emails linked to mobile-optimized websites sent to his iPhone during the morning commute.

The IMM software enables marketers to have the right creative assets ready to compile the best possible combination of email messages, text alerts and website display ads for Mr. Doe on a Friday before the big rivalry game. The campaign management software is advanced enough to translate the attribution analysis into actionable outreach.

Multi-touch attribution is an analytically driven competitive advantage that is fundamental to optimizing marketing spend, mapping the customer journey and amplifying return on marketing investment (ROMI) or return on advertising spend (ROAS).

Teradata’s ability to bring together analytics, data warehousing and sophisticated campaign management is a core differentiator that’s unique in the marketplace. Working together, multi-touch attribution, a data warehouse and integrated marketing management can deliver:

  • New value by optimizing the mix of marketing programs, marketing spend and customer targeting for the highest ROI.
  • New insights with big data analytics, such as time-series and graph analysis that make it possible to understand the extended customer journey and social interactions.
  • New levels of productivity with easy-to-scale, easy-to-build advanced analytics that increase agility and create competitive advantages.
  • Enhanced ability to plan and execute campaigns by using analysis and data marketing efforts, organizing the marketing process, and optimizing all customer contacts through all channels.

TAKE THE CRITICAL STEP

Multi-touch attribution analytics are essential for marketers who need to understand today’s customer journey. Shifting from single-touch attribution to granular, multi-touch attribution is a critical step in adapting to compete in today’s data-driven marketplace. The rewards are clear: a better understanding of the customer, a higher level of customer engagement and a veritable gold rush for marketers.


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EMC Q3-2014