Precise Measurement Of Ecommerce Attribution — SwiftERM

David Swift
6 min readSep 18, 2024

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Understanding ecommerce attribution is often seen as one of the trickiest aspects of ecommerce marketing. This leads many retailers to overlook its importance. But, resist the urge to ignore ecommerce attribution. It’s essential for correctly evaluating the worth of different marketing methods and efforts. In an environment where Return on Ad Spend (ROAS) and gross profit margins are paramount, grasping ecommerce attribution is vital for online retailers to identify areas for reduction and areas to invest in.

What is an attribution model?

An attribution model is a data analysis tool that lets you attribute sales to different points of interaction with your customers, ranging from marketing and advertising platforms like Facebook, Instagram, and Google Ads to personal customer service chats and in-store visits. This information can be leveraged to develop metrics for online sales, evaluating the effectiveness of your sales pipeline. Alternatively, it can be used to measure the quality of customer service by analyzing the experience level they encounter.

Types of attribution models

Marketers and analytics platforms use many attribution systems. These are some of the most popular:

1. Last touch or last click

The last step is often praised for securing the deal, while other efforts that may have led to the purchase are overlooked. This standard approach to credit allocation for sales is straightforward, frequently used, and well-known, however, it has drawbacks. By placing all the emphasis on the final step, this method overlooks the majority of a customer’s journey. Seasoned online vendors recognise the significance of the initial phases in the online sales process. Perhaps not as crucial as a webpage with a high conversion rate product, but they shouldn’t be dismissed entirely! The pros and cons of last-click attribution are listed here.

2. First touch, or first click

The reverse of the previous interaction. The initial interaction receives all the recognition, no matter how much you work to develop the relationship until it leads to a purchase. This approach is excellent for learning which campaigns are raising awareness for your brand, but it’s frequently unreliable due to the expiration of cookie tracking. More details on first-click attribution are here.

3. Linear Attribution

Every interaction is given the same importance. This approach is expected to be somewhat precise, though not completely accurate. Not every interaction carries the same significance, so the difference between the actual worth and the worth assigned by the linear model is expected to result in a distorted perception of reality. More details on linear attribution models are available here.

4. Time-decay

Every interaction receives recognition, however, those near the purchase are given more importance than initial contacts. Establishing this ecommerce attribution model is the most challenging but provides the most precise depiction of a customer’s buying path. More details on time decay attribution are available here.

The Perfect Attribution Model for Your Ecommerce Site

If you were hoping to discover the ideal model for your business here, I regret to inform you that it varies based on your specific business model, your Customer Lifetime Value (LTV)/Average Order Value (AOV), and how you allocate your marketing budget. Businesses that are more sophisticated in their attribution strategies often opt for a bespoke model that accurately assigns importance to each interaction based on the distinct dynamics of their operations.

Attribution in ecommerce is a nuanced field that demands precise analysis. Do you utilise certain ecommerce marketing channels, and which ones don’t you? Which channels are directly leading to sales? Are these conversions immediate, or are they ‘soft conversions’ that eventually lead to purchases further down the sales funnel? What’s the typical path a customer takes before making a purchase?

Where are you achieving the highest return on investment (ROAS)? These are all critical questions that need to be addressed, and the answers will vary from one business to another.

LTV and Assisted conversions

The worst practice is that ROAS calculations are always being done on an average cart, all the time, and it hurts.

Lifetime Value (LTV)

Buying a new customer costs five times more than keeping an existing one. This means the extra cost for each new sale, especially in marketing, gets very small after the initial purchase. Therefore, the profit you earned on the first sale will likely go up for the next two or more purchases.

Most online businesses get this concept at the point of sale. Yet, when it comes to their online marketing attribution models, these retailers often overlook it. This leads to an incorrect assessment of the worth of each interaction and platform. The difference in how often customers buy matters when deciding where to spend money on marketing. Focus less on the first sales and more on the overall value of the customer relationship, and you’ll be amazed at the true value of your customer journey.

Assisted Conversions

In an era where nearly all visitors don’t purchase on their initial visit, and shopping carts are left empty two-thirds of the time, the key to success lies in assisted conversions! By establishing more points of contact after that initial interaction, you can guide potential customers towards becoming actual buyers.

It’s crucial to correctly identify these additional touch points when evaluating your marketing channels and budget allocation. This is the reason why the initial touch and final touch eCommerce attribution models are inadequate. A small percentage of customers purchase their first interaction, and unless you provide these supportive experiences during the middle stages of the sales process, you won’t have the chance for a final touch. Focus on the long term and aim for frequent interactions.

Where to start?

Google Analytics is an excellent tool for collecting data on ecommerce metrics for your website. Head to Analytics and look for the left sidebar> Conversions > Multi-channel funnels > Top conversion paths. This page will provide insights into the pages that visitors engage with before making a purchase (or reaching one of the objectives you’ve established in your analytics).

In that particular area, the Time lag will provide insights into the duration from the initial ad impression to the point of conversion across various channels. Moving on to Assisted conversions, this will offer Google’s top perspective on the various soft conversions and interactions that contributed to your conversions. Keep in mind, that you can refine your search by channel, source, or landing page to achieve more precise outcomes. Assuming you’ve previously established the necessary UTM tracking, if not, there are numerous excellent resources available online to guide you through the process.

Why does eCommerce attribution matter?

Data should be the primary force behind your marketing strategies, investment choices, and ultimately, your business decisions. Failing to rely on data can lead to errors such as discontinuing a successful ad campaign or doubling your efforts on an ineffective channel, or missing out on potential sales. Gaining insight into what drives sales and what doesn’t is akin to understanding what sells and what doesn’t in marketing. Even if this isn’t immediately apparent from the outset.

To look further into the top attribution software providers, then G2 offers their sights.

For more details on sustaining email attribution models, then we offer our insights.

Originally published at https://swifterm.com on September 18, 2024.

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David Swift
David Swift

Written by David Swift

SwiftERM hyper-personalisation SaaS for ecommerce email marketing.