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An Attribution Model is a set of rules that allows you to determine which marketing channel gets credit for each conversion that occurs on your site. Being an ECommerce business, the entire point is to make sales. There are multiple digital avenues that you can use to promote your brand, products, and services. The Attribution model helps you gauge the performance of each.
Here is a detailed explanation of each model and when to use them from the best E-Commerce development company in Chennai.
Last-Click Attribution model:
The last-click attribution model is the default model. It assigns the entire credit of the conversion to the last clicked channel through which the visitor accessed your site.
Say a user comes across a new brand on Facebook, click on the link and check out the products. Later they google some reviews about the brand. Finally, they make a purchase while accessing the website via Google ads. The credits for the purchase will be assigned to Google Ads, even though it was the Facebook ad that brought the user’s attention to the brand. If they cut down on Facebook ads, the brand will surely face a decrease in conversions. But this model can still be used if you are using limited channels of advertising and you cater to a very niche crowd.
First Click Attribution Model:
The First Click Attribution model is the polar opposite of the Last click attribution model. It gives the entire credit to the first point of contact that the user has with the site. Say a user found an Instagram ad for the website, clicked on it, but didn’t take any action. Further, they looked up the site on Google, finally reaching the site via Google ads. The model gives the credit to the Instagram ad even though it didn’t result in a conversion.
This attribution model can be used to understand which marketing channel is creating the most awareness about your brand. E-Commerce development companies in Chennai use this model as an indicator of where your target audience is active. This model works well if you are looking to connect with more new customers.
Linear Attribution Model:
The linear attribution model gives credit to every marketing channel where a visitor had access to your site, regardless of which channel brought about the conversion. Equal credit is given to all the channels.
For example, a potential customer saw the first ad for your site on Facebook and clicked on it to check it out. Later they got retargeted by your email campaign. They did some further research on google. Finally, they visited the site through a google ad and made a purchase. The customer journey brought them through 4 marketing channels and each of them is given 25% of the credit.
The downside is you cannot determine which of the channels is bringing you customers and which are secondary points of access.
Time Decay Attribution model:
The time decay attribution model assigns the most credit to the marketing channel that was accessed closest to the purchase. The older ones are given less credit. If the customer first saw the ad on Instagram, then got a retargeting mail and then finally made the purchase via a google ad, then the google ad gets the most credit say 60%, the mail gets 30% and the Instagram ad 10%.
E-Commerce website designing companies in Chennai use this model when the purchase cycle is complicated with multiple channels. This gives you a fair idea of which channels you must keep investing in while making the others your secondary advertising avenue. But fair warning it can make you undervalue the first channel that brought them to your site.
Position-based Attribution Model:
The position-based attribution model is a combination of the linear and time decay models. It gives high and equal credits to the first and last marketing channels accessed by the user and distributes the remaining credits equally between the ones in between.
If the user journey was from Facebook ads to email campaigns to google and google ads, then Facebook ads and google ads will be assigned something like 40% credits each. Email and google will get 10% each. This model works best with low-value brands or low-value products, that have a fairly simple decision-making process.
Data-Driven Attribution model:
The data-driven attribution model employs machine assigned credits based on how much the particular channel contributed towards the purchase decision. This is highly technical and near accurate with deep machine learning. However for your business to be eligible for the data-driven attribution model, you need to have achieved at least 15,000 clicks and 600 conversions over the past 30 days.
Each attribution model is unique and has its benefits. If you meet the requirements for the Data-Driven Model then we recommend that you take it. Most businesses can run with a Linear Attribution Model comfortably as long as they use only 3-4 marketing channels. If it’s more than 4 channels but you are not eligible for data-driven, then choose the Position-Based Attribution Model. If you still have trouble figuring out which model is for you, book a consultation with Open Designs. We are one of the top 10 E-Commerce companies in Chennai and are experts in Digital marketing and brand consulting too.
FAQ
How can I use customer reviews and testimonials to improve my business?
Customer reviews and testimonials can be a valuable source of information for improving your business. Here are some ways you can use them:
- Identify areas where you can improve your products or services.
- Get feedback on your customer service.
- Learn what your customers are looking for.
- Use positive reviews to attract new customers.
- Use negative reviews to improve your customer experience.
- Keep track of your progress over time.
How should I respond to negative reviews?
When a customer leaves a negative review, it's important to respond in a professional and courteous manner. Here are some tips for responding to negative reviews:
- Start by thanking the customer for their feedback.
- Apologize for any inconvenience or dissatisfaction they may have experienced.
- Explain the steps you're taking to address the issue.
- Offer to help the customer resolve the issue.
- Be honest and transparent about the situation.
- Don't get defensive or argumentative.
- Focus on resolving the issue and providing excellent customer service.
How can I encourage customer reviews and testimonials on my e-commerce website?
There are a number of things you can do to encourage customer reviews and testimonials on your e-commerce website, including:
- Make it easy for customers to leave reviews. The easier it is for customers to leave a review, the more likely they are to do so. Make sure that your website has a clear and concise review process.
- Ask for reviews. Don't be afraid to ask your customers to leave reviews. You can do this in an email, on your website, or on social media.
- Offer incentives for reviews. You can offer incentives for customers to leave reviews, such as discounts, free products, or gift cards.
- Respond to reviews. When customers take the time to leave a review, it's important to respond. This shows that you value their feedback and that you're committed to providing a great customer experience.
- Promote reviews. Share positive reviews on your website, social media, and email marketing campaigns. This will help to attract new customers and build trust with existing customers.
Why are customer reviews and testimonials important for e-commerce businesses?
Customer reviews and testimonials can help, e-commerce businesses in a number of ways, including:
- Increasing sales. Studies have shown that positive reviews can lead to increased sales. For example, one study found that a 1-star increase in product rating can lead to a 5% increase in sales.
- Building trust. Reviews can help to build trust with potential customers. When potential customers see that other customers have had a positive experience with a product or service, they're more likely to trust the business and make a purchase.
- Improving customer satisfaction. Reviews can help businesses identify areas where they can improve their products or services. By taking customer feedback into account, businesses can improve the customer experience and increase customer satisfaction.
- Providing social proof. Reviews can provide social proof that your products or services are worth buying. When potential customers see that other people have had positive experiences with your business, they're more likely to trust you and make a purchase.
What are customer reviews and testimonials?
Customer reviews and testimonials are feedback from customers about their experience with a product or service. They can be written on a company's website, social media pages, or third-party review sites.
What are the future trends in e-commerce analytics?
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- Personalization: E-commerce businesses will use AI and machine learning to personalize the shopping experience for each individual customer. This will include things like recommending products that the customer is likely to be interested in, providing targeted discounts, and sending personalized marketing messages.
- Augmented reality (AR) and virtual reality (VR): AR and VR will be used to create more immersive and engaging shopping experiences. For example, customers will be able to try on clothes virtually or see how furniture would look in their home before they make a purchase.
- Voice search: Voice search will become more popular, as customers become more comfortable using their voice to interact with their devices. E-commerce businesses will need to optimize their websites for voice search in order to make it easy for customers to find the products they're looking for.
- Real-time analytics: E-commerce businesses will use real-time analytics to track customer behavior and make changes to their website or marketing campaigns in real-time. This will help them to improve the customer experience and increase sales.
What are some common mistakes that businesses make with e-commerce analytics?
There are a number of common mistakes that businesses make with e-commerce analytics, including:
- Not tracking the right metrics: Businesses often track metrics that are not relevant to their goals. It's important to choose metrics that will give you the most valuable insights into your customers and your business.
- Not analyzing the data: Even if you're tracking the right metrics, it's important to analyze the data and identify trends and patterns. This information can help you make informed decisions about your business.
- Not making changes based on the data: Once you've identified areas where you can improve, you need to make changes to your website, marketing campaigns, and products based on the data. Otherwise, you're just wasting your time and money.
- Not using an e-commerce analytics platform: E-commerce analytics platforms can make it easier to track, analyze, and act on data. If you're not using an e-commerce analytics platform, you're making things more difficult for yourself.
How can I get started with e-commerce analytics?
If you're just getting started with e-commerce analytics, here are a few steps you can take:
- Choose an e-commerce analytics platform that is right for your business.
- Set up your tracking code on your website.
- Start tracking metrics that are important to your business.
- Analyze the data and identify areas where you can improve.
- Make changes to your website, marketing campaigns, and products based on the data.
What are the benefits of using an e-commerce analytics platform?
There are many benefits to using an e-commerce analytics platform, including:
- Ease of use: E-commerce analytics platforms are designed to be easy to use, even for businesses that do not have a lot of experience with data analysis.
- Powerful features: E-commerce analytics platforms offer a wide range of features that can help businesses track their performance and make informed decisions.
- Scalability: E-commerce analytics platforms can be scaled to meet the needs of businesses of all sizes.
- Cost-effectiveness: E-commerce analytics platforms are typically more cost-effective than hiring a data analyst to collect and analyze data manually.
What is the difference between e-commerce analytics and web analytics?
E-commerce analytics is a subset of web analytics that focuses specifically on data related to online stores. Web analytics, on the other hand, is a broader term that encompasses all data collected from websites, regardless of whether they are e-commerce websites or not. Some of the key differences between e-commerce analytics and web analytics include:
- E-commerce analytics focuses on metrics that are specific to e-commerce, such as sales, conversion rates, and average order value.
- Web analytics focuses on a wider range of metrics, including traffic sources, bounce rates, and page views.
- E-commerce analytics data is typically more complex and difficult to interpret than web analytics data.
- E-commerce analytics is more important for businesses that sell products online than for businesses that do not.
What are the types of E-Commerce?
There are 4 main types of E-Commerce –
- B2B (Business to Business) – Here, a business sells its products or services to another business. In a majority of cases, the business that is at the buying end further sells the products or services to the consumers.
- B2C (Business to consumer) – This is the most common of all the types wherein a business sells its products or services directly to the consumer.
- C2B (Consumer to Business) – This is where consumers sell products or services to the companies.
- C2C (Consumer to Consumer) – This is where consumers exchange goods and services among themselves and make money by charging transaction or listing fees.
What would be the E-Commerce future in India?
By the end of 2021 there will be over 600 million internet users in India. On account of the users, the E-Commerce sector is expected to hit a whopping 200 billion USD by 2026. There are several E-Commerce trends that are making their way online, including smart devices that use voice activated commands to do your shopping on. There has been increased personalization in ads and promotions that has significantly boosted conversions. Much of online marketing will soon be automated, freeing precious human resource from mundane marketing tasks. There is widespread use of AI and VR to enhance customer experience. In 10 years, India’s E-Commerce industry is expected to become the second largest E-Commerce market in the world.
What are the benefits of having a website to your business?
It has come to a point that a business is only considered successful if they have a strong online presence. This is evidently done by creating a dedicated website to the brand. The benefits of owning a website for your business are,
- A credible repository of information on your business
- 24 x 7 customer access to your business
- Boosts interaction with the brand
- It helps expand your market reach
- It improve brand awareness to a global scale
- Provides you with valuable consumer insights
- Helps you beat other competitors with online presence
- Access to all digital modes of advertising
- Makes information exchange easier
What is the difference between website design and website development?
When searching for a web developer, it is important for you as a client to know the difference between website design and website development. The difference is quite distinct but a web developer is capable of doing both if they are skilled enough. Web design is the initial ideation and planning of a website’s layout, appearance and content. Web development is the actual process of developing code for creating the site and its subsequent maintenance. Web design is about creativity, while web development is completely technical. You need to engage the services of web developers who can help you with both, as they know how to recreate your brand personality on the website.
