While using a multi-channel marketing strategy may be a no-brainer, measuring its success can be a different story. Our friends at Target Marketing have devised a budget-friendly way to measure your multiple marketing channels so you can make informed decisions about the channels in your marketing mix.Attribution analysis is the practice of tracking and measuring the marketing touchpoints that influence the customer’s decision journey. Most marketers would agree that collecting the marketing data required for attribution from channels like social, direct mail and search can be a daunting task. But getting it right can result in wiser ad spends, a better understanding of the customer experience and dramatic increases in campaign performance. And it doesn’t have to require the fancy data platforms that so often require a lavish budget.
Match Your Markets
As you take inventory of your marketing channels, select one geographically-similar market for each one and identify it to serve as the “control cell.” Keep the markets as closely aligned to demography and size as you can, and stay away from the ones that have competing media.
Test, Test, Test
Create a test matrix out of your data and arrange it in a way where one of your markets acts as a control and the remaining markets eliminate one of your evaluated channels. In the example provided, all channels are slotted under the control cell, and one channel is eliminated per test cell. Your test should take as long as it gets you to achieve a reliable set of responses. As the author puts it, “with 250 to 300 responses in each column and each row, you can be 90 percent confident that your results won’t vary by more than 10 percent in a rollout scenario.”
Examine the Costs
Within your matrix, analyze your cost per response for each given market. The cells containing a lower cost response from the control, per the example below, suggests that the channels eliminated from those marketers increased the average cost per response. As you can see, direct mail, display and mobile yielded higher costs per response than the control cell including all channels.
This type of formula can also translate to revenue and profit; whether positive or negative, the numbers you get between the control profit and the profit aligned in each matched cell provides the incremental value of the channel that was omitted in that cell.
Be advised that the results aren’t 100% foolproof, thanks to external factors that may come into play and slightly mismatched markets. But the insights it produces will speak volumes in terms of your multi-channel mix. Remember that making informed decisions on how to allocate your marketing dollars hinges on research, testing, and analysis.