Understanding Different Attribution Models

When customers make a purchase, their journey typically involves multiple interactions across multiple marketing channels. For example, a customer might see a Google ad, receive an email campaign, and then click on a Facebook ad, all before finally making a purchase. As a marketer, the challenge is to determine which of these touchpoints deserve credit for the conversion. This is where attribution models come in, helping you assign credit and understand which channels and campaigns are most effective.

The Attribution Issue

Attribution models are essential for evaluating the performance of different marketing channels. If you were to log into each marketing platform and add up the reported conversions, you'd likely end up with inflated numbers. This is because each platform independently claims credit for the conversion, regardless of when the touchpoint occurred. To avoid this, it's critical to decide for an attribution model.
Let's take a look at a typical marketing journey:

1. Google: The customer first clicks on a Google ad, becomes familiar with your brand and products, but doesn't make a purchase.
2. Klaviyo: They then click on a link in your newsletter.
3. TikTok: Next, they engage with your ad on TikTok.
4. Meta: Then they are targeted by a Meta ad.
5. Klaviyo: Finally, they make a purchase after receiving an email campaign.

If you check each ad manager, you'd see:

• Google: 1 conversion
• Klaviyo: 1 conversion
• TikTok: 1 conversion
• Meta: 1 conversion

However, your eCommerce platform would show just one order, not four.

Attribution Models in RetentionX

In RetentionX, we provide two primary attribution models to help you assess your marketing efforts: First-Click Attribution and Last-Click Attribution. These models can be easily toggled within our marketing reports, allowing you to gain insights into the performance of your channels and campaigns.

Please note, that UTM parameters form the basis for understanding the marketing journey of your customers.

These attributions models are applied in our marketing report:

• Best Channels
• Best Campaigns
• Channel Development
• Campaign Development

First-Click Attribution

First Click Attribution gives all the credit for a conversion to the first touchpoint a customer interacts with. This model is useful for understanding which channels are driving initial awareness and engagement. Taking another look at our example, first-click gives full credit to the initial customer interaction, highlighting the top-of-funnel effectiveness: Google.

Last-Click Attribution

Last Click Attribution gives all the credit for a conversion to the last touchpoint a customer interacts with before making a purchase. This model is beneficial for understanding which channels are most effective at driving final conversions. In the same scenario, last-click attribution credits the final touchpoint, so Klaviyo receives the credit instead of Google.

Advanced Options: Working with Any Click

With our segment builder, you are also able to identify customers based on any click of their marketing, providing even more flexibility in how you evaluate and attribute conversions across different touchpoints.

By understanding and applying these attribution models, you can gain deeper insights into your marketing strategy's effectiveness and make more informed decisions about where to allocate your resources.

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