spending your marketing budget on the right digital channels
TRANSCRIPT
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INVESTING IN THE RIGHT DIGITAL CHANNELS
Jan-Herm Maarleveld, Account ExecutiveErwin Huizenga, Consultant Customer Intelligence
Version 1.0September 2015
“How to get started with multi-touch attribution modeling in the travel industry and generate a higher ROI”
Copyr igh t © 2013, SAS Ins t i tute Inc . A l l r i gh ts r es erved.
A MARKETER'S CHALLENGE
“WE WANT VALUE-FOR-MONEY FROM OUR DIGITAL MARKETING CAMPAIGNS.”
• Step 1 – What is my optimal media mix (budget allocation)?• TV • Radio• Print • Digital
• Step 2 – Which (combination of) digital channels provide me the optimum conversion in a customer journey?• Organic search (Search Engine Optimization)• Paid Search (Search Engine Advertising)• Affiliate network• Social media• Email• Display Advertising (app, websites etc.)
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ATTRIBUTION MODELS COMMONLY USED FOR DIGITAL MARKETING
• Media Mix modeling• Budget allocation at highest level.
• Commonly used attribution models in “Digital”• First Touch• Last Touch• Linear• Position-based (40-20-40)• Time Decay
• Pros & Cons of these commonly used models.• “Having one attribution model is better than having no attribution model at all.” • Assumption-Driven vs. Data-Driven.• Easily implemented and applied.• Predefined attribution models are easy to use (…but that may lead you to predefined
conclusions).• Applicable for simple attribution paths (…but when you have a greater number of channels,
the more robust attribution model you need).
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MULTI-TOUCHATTRIBUTION WHAT IS IT? AND HOW DOES IT WORK?
• What is it?• “Multi-touch attribution is a data-driven method that enables organizations to determine the relative value of each impression or
click during the customer journey.”• How does it work?
• A statistical analysis of historical customer data (e.g. touch point sequence, conversion rate, revenue, margin) provides input for creating a statistical model.
• This model generates different “contribution factors” for the touchpoints, depending on their frequency and position in the customer journey.
• The contribution factor determines the share of revenue allocated to that particular touch point.Contribution factor Web App Mail Social
Position 1 0.25 0.00 0.45 0.15
Position 2 0,60 0.75 0.00 0.00
Position 3 0.30 0.00 0.25 0.00
Position 4 0.00 0.00 0.00 0.30
Allocation per journey Web App Mail Social Revenue
Customer Journey 1 0.25 0.00 0.45 0.15 € 925,00
Customer Journey 2 0,60 0.75 0.00 0.00 € 0,00
Customer Journey 3 0.30 0.00 0.25 0.00 € 450,00
Customer Journey 4 0.00 0.00 0.00 0.30 € 350,00
Sequence Web App Mail Social Revenue
Customer Journey 1 1 2 3 4 € 925,00
Customer Journey 2 1 2 - - € 0,00
Customer Journey 3 2 - 3 1 € 450,00
Customer Journey 4 3 2 - 1 € 350,00
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MULTI-TOUCH ATTRIBUTION
ESTIMATE THE REAL EFFECT OF EACH TOUCHPOINT YOUR CUSTOMERS JOURNEY
Organic Search Affiliate Social Media Purchase
61% 29% 10%
Example of 1-1 Customer Journey
€379
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MULTI-TOUCHATTRIBUTION HOW TO GET STARTED
Collect & prepare (new) data
Make data-driven ‘maps’ of customer
journeys
Build your analytical model on data:
sequences, touch points, contribution,
weights etc.
Apply your model to new purchases
Create a dashboard with the results
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6 KEY POINTS OF MULTI-TOUCH ATTRIBUTION MODELING
Travel organizations can now take fact-based decisions about
their digital marketing budget allocation, through
data-driven analysis and modeling of (historical and current) customer journeys, that
provide insights about touchpoints’ actual influence on conversion and contribution, to
generate the highest Return-on-Investment (ROI).
fact-based decisions
digital marketing budget allocationdata-driven
analysis and modeling
actual influence on conversion and contribution
customer journeysReturn-on-Investment
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LEARN MORE ? PLEASE CONTACT US AT…
• SAS Institute Netherlands• http://www.sas.com/nl_nl
• Jan-Herm Maarleveld• Phone: +31(0)35 – 699 69 00• E-mail: [email protected]
• Erwin Huizinga• Phone: +31(0)35 – 699 69 00• E-mail: [email protected]
• Crystalloids• http://www.crystalloids.com/
• Marcel van der Marck• P: +31(0)20 – 888 4849• E: [email protected]
