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  • In this lesson we're going to discuss two important concepts used to measure the customer

  • journey --

  • conversions and conversion attribution.

  • One of the most important concepts in digital analytics is the idea of macro and micro conversions.

  • A macro conversion occurs when someone completes an action that's important to your business.

  • For example, if you're an ecommerce company,

  • the most important macro conversion is usually a transaction.

  • A micro conversion is also an important action,

  • but it does not immediately contribute to your bottom line.

  • It's usually an indicator that a user is moving towards a macro conversion.

  • It's important to measure micro conversions

  • because it helps you better understand where people are in on the journey to conversion.

  • Many times, when we talk about macro and micro conversions

  • we discuss the idea of attribution.

  • Simply put, attribution is assigning credit for a conversion.

  • We want to assign credit to our marketing channels

  • in order to understand the return on our marketing investment for each channel.

  • If we spend $100 on a marketing activity our hope is that we will generate more than $100

  • in revenue.

  • The most common type of attribution is called last click attribution.

  • Last click means that all of the value associated with the conversion

  • is assigned to the last marketing activity that generated the revenue.

  • The last marketing activity gets all the credit.

  • We've used last-click attribution for many years because it's the best measurement we've

  • had.

  • But we're now able to look at all of the marketing activities that helped generate each conversion.

  • This is important, because the reality is your customer will likely interact with you

  • many times before conversion occurs.

  • How do we understand the value of those other marketing channels prior to conversion?

  • We use the concept of an assist.

  • You see, attribution is a lot like scoring points in a basketball game.

  • It takes more than one player to make it happen.

  • One player scores the goal, but other players may help, or assist, in the process.

  • If you were coaching a basketball team,

  • you'd want to understand which of your players score the goals and which players assisted

  • in the scoring.

  • This helps you understand how your team works together to be more successful.

  • It's the same in online marketing.

  • If you think of the marketing channels as your players, some make assists and some score

  • goals.

  • To properly understand the value of each channel,

  • you need to know which role it's played in your customer's journey to conversion.

  • There are many different ways to assign value to channels.

  • Rather than assign all of the value to the last channel,

  • you might want to assign all of the value to the first channel

  • -- the one that started the user on the customer journey.

  • This is called first click attribution.

  • The reason you might do this is

  • to understand that the channel is a good channel for initiating conversions.

  • Or, you might assign a little bit of value to each of the assisting channels in the customer

  • journey.

  • In summary, the whole point of attribution is

  • to better understand the value of each marketing channel

  • and how multiple channels work together to drive conversions.

  • You can then use this knowledge

  • to better understand your customer's journey and allocate your online marketing budget accordingly.

In this lesson we're going to discuss two important concepts used to measure the customer

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B1 conversion attribution marketing macro customer assign

Digital Analytics Fundamentals - Lesson 2.3 Conversions and conversion attribution

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    yangsarah posted on 2013/11/26
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