The Best Marketing Attribution Tools & Softwares

Marketing Attribution Software Definition: What are Attribution Tools?

The English term "Attribution" translates into German as "Ascription" or "Assignment", which is extremely accurate for the definition of attribution software. Because with such solutions, (marketing) managers can indeed assign values to individual touchpoints that customers and prospects have with their company.

Ideally, this allows the entire purchase process to be examined in detail. The touchpoints that took place before a purchase and the path to the conclusion are usually attributable to specific marketing and advertising measures. That's why attribution tools are commonly referred to as marketing attribution software.

With such an application, marketers* have the opportunity to track all relevant online channels or their campaigns. This gives them a comprehensive overview and as a result, a picture of the typical customer journey of their customers. At a technical level, connections to various tracking tools and attribution models are the focus.

Based on these, it can be data-based to highlight the successes or failures of individual campaigns and which touchpoints and measures are predominantly responsible for conversions. Using this information, specific changes or expansions of certain efforts can then be made.

Why should companies use marketing attribution software?

People looking for solutions to needs or challenges today usually use not just one, but several channels. They search via search engines, on websites, in online shops, in social networks and/or in catalogs, sometimes at the same time or building on one another for helpful information and products.

The number of channels and impulses or touchpoints with a brand that are required before a purchase depends primarily on the type of concern and the individual background of potential buyers. According to a study by Exactag, however, an average customer journey spans no fewer than 20 touchpoints today.

All the different contact points with a company have their own (marketing) potentials to boost sales. The possibilities are indeed immense. On the other hand, due to the diversity of the channels or touchpoints used and potential interactions, there is also an enormously increased risk that too much effort will flow into areas that may not be significantly profitable. A lot of marketing and sales budget can be burned quickly. Overall, an overview is very difficult.

This is where marketing attribution software can come into play. They provide the necessary overview and allow managers to assess individual touchpoints based on concrete data. Given the evolution towards omni-channel use, these options are undoubtedly extremely relevant from a marketing-economic perspective.

How does attribution software work?

The basic principle of how marketing attribution software works is that conversions - be they purchases, data transmissions or even "just" visiting a particular website - usually precede a series of events or touchpoints. These days, it often starts with a search query on Google. Here, (potential) customers may come across an ad that leads them to the company's website. At the same time, they may stumble across a social media ad from the brand that leads them to register for the company's newsletter. A little later, they may come across the company again in a store or - in the B2B sector - at a trade show through a flyer that encourages participation in a bonus campaign. In the end, a purchase is actually made.

With this, the respective business has of course achieved the most important of its conversions: A customer has been won. However, two questions remain open, namely: How decisive were the individual stages for the purchase decision and what ultimately led to the conclusion?

To find out, attribution solutions primarily use online marketing tracking software, such as Google Analytics, Matomo or eTracker. But other analytics tools can also be used. They form the basis for the tracking connection to the channels or touchpoints used, such as organic Google search, advertising, newsletters and social media.

With so-called attribution models, managers can record, analyze and evaluate (or have evaluated) the various touchpoints. Information is ultimately available about which touchpoints and interactions were crucial for the desired conversions. Sometimes, specific revenue shares can even be attributed to the measures. At the end, the best performing activities are pushed and less successful campaigns are optimized or even discarded.

As already mentioned, certain attribution models are at the center of relevant evaluations. These consider individual or several touchpoints and weight them largely automatically. A more detailed description would go beyond the scope at this point. However, for the capture of the basic function of attribution tools, it is important to know when buying that the models are based on different methods. Marketing attribution software is often fundamentally aligned with these methods.

• Rule-based attribution: With this method, users determine the valuations of individual touchpoints themselves before the analysis. The approach is quite static, as only the defined values are used as a basis.

• Data-driven attribution: Here, the influence of the individual touchpoints is determined with the help of collected data. Algorithms do the listing. This method reacts relatively flexibly to changes and transfers them directly to the analysis. It is therefore more dynamic, but also more complex and tends to be more expensive.

What are the advantages and disadvantages of marketing attribution software?

Very important advantages of using a marketing attribution software have already been identified above: Essentially, such a solution offers the chance to get a comprehensive overview of the touchpoints with one's own company and to evaluate them data-based. This can provide a tremendous plus in marketing and sales efficiency. Other central benefits associated with it are summarized below.

• Optimization of expenditures: Attribution platforms enable companies to optimize their spending on all hard-to-stick-to-at-work marketing measures. Thus, marketers can, among other things, call up cost data from all major hard-to-stick-to advertising platforms, assign them to specific measures, and then track the revenue from the respective touchpoints over time.

• Personalized content: Marketers can use attribution software to present potential buyers with highly effective personalized content. The solution gives companies an overview of how digital assets impact sales opportunities and revenues. This gives responsible parties the chance to create a highly individual customer journey tailored to this. With the right applications, personalization can even be largely automatic.

• Tracking revenue: With the help of attribution software, marketing experts can precisely determine whether and which campaigns effectively increase revenue. It is possible to track hard-to-stick-to marketing measures in detail, link them and possibly assign them to subsequent revenue generation.

• Optimized product development: Attribution software offers long-lasting not only at the marketing level. It can also enable companies to improve product development through the analysis of attribution data. Above all, the allocation at the contact level offers a detailed insight into the needs and desires of typical customers. This data is extremely helpful for weighing up product updates or redesigns.

Many of the problems that arise from using marketing attribution software are due to false assumptions. These can be caused by distortions in the data or other factors. Here are some of the most common pitfalls to watch out for.

• Correlation-related distortions: Correlation-based distortions occur when marketers believe that certain actions have caused a chain of events, even though this is not the case. For example, if clicking on a display ad is considered the first touchpoint in the customer journey, even though the conclusion was actually initiated by visiting a store, this can represent a false correlation. This in turn carries the risk of unfavorable weighting - the display advertising is likely to be given more importance than it actually has. This leads to sub-optimal follow-up efforts.

• Market distortion: Market distortion occurs when customers would have bought products due to their market position even if they had not encountered specific marketing measures. For example, a click on an ad leads to the online store where a product is purchased. However, the conclusion does not have to be significantly influenced by the ad. It may be triggered by other persuasive aspects. If now the expenses for advertising are massively increased, this is hardly goal-oriented.

• Enormous variety of touchpoints: There are already a huge number of marketing touchpoints today. These touchpoints can be almost any kind of activity - starting with the consideration of marketing content that is mentioned in social media, to participating in a virtual event. As the number of touchpoints is steadily increasing, it is all the more important that all marketing technologies associated with the individual points work correctly together with the attribution software. Unfortunately, this condition is not always met, which makes attribution processes difficult and once again quickly leads to false assumptions and follow-up measures.

How do you select a suitable attribution tool?

To get a perfectly fitting attribution software, responsible parties should carefully weigh the advantages and pitfalls of the individual provider companies. The following factors should be particularly considered when searching for a suitable solution.

Integration conditions Compatibility with a company's specific tech stack is crucial. In marketing, advertising platforms, e-commerce systems, SEO tools, email automation, a CRM and other programs are now indispensable in many places. These applications provide important information or form direct touchpoints for the attribution. They should therefore be optimally integrable with the attribution solution.

However, this is not always the case. For example, some attribution platforms are unable to connect with multiple Facebook advertising accounts. Others can only contact certain CMS or shop systems. Interested parties are therefore well advised to focus their research early on attribution software that supports their established system architecture.

Attribution models Access to multiple ways of viewing data is another important decision point. Interested parties should look out for attribution software that has models that allow them to dive deep into every area of their marketing funnel.

The following attribution models are extremely helpful in many contexts:

• First-Click ROI
• New Leads ROI
• Re-Engaged-Lead ROI
• Last-Click ROI
• Full-Effect ROI
• Linear ROI

A wide range of revenue models makes it easy to see where the ROI needs to be optimized. This makes analyses and evaluations more meaningful and marketing decisions more sound.

Data protection compliance In today's world, compliance with data protection is more important than ever for companies. Marketing managers should ensure that the attribution software used complies with current data protection regulations.

A precise search should be made for provider companies that strictly comply with GDPR guidelines. If that is not the case and data problems, such as theft or transmission of critical information to third parties, occur, this can cause considerable difficulties for the user company. Heavy fines and legal disputes are threatening.

If GDPR compliance is adhered to, this also makes your own brand more trustworthy.

Tracking users across multiple devices In order to benefit as much as possible from marketing attribution software, it should be able to track users or (potential) customers across different devices. To give a small example: Let's say a prospect clicks on a Facebook ad, but does not buy. The next day, the same person is on the road with their mobile device and makes a purchase that was initiated by a Google ad.

Naturally, it is very helpful to recognize where this conclusion can be classified device across. That it's the same user shows the IP. Facebook should be attributed the first click and Google the last. So far so good. But of course it is also relevant at various levels whether desktop or mobile specific measures led to the conclusion.

Not all tracking attributions are capable of evaluating corresponding data and providing helpful insights. If your own clientele comes into contact with the brand via stationary computers and portable devices alike, the possibility of cross-device tracking should be particularly considered.

Don't put too much into real-time tracking Some marketing attribution software or their provider companies highlight real-time tracking as a significant advantage. However, this feature is far less useful for most users than initially thought. While it sounds great to get immediate weighting, in reality this is hardly helpful.

Clicks, leads and other conversions usually take time to lead to a purchase. On average, it takes (depending on the audience and product) more than one or even two weeks from entry into the customer journey to completion. A variety of touchpoints can arise during this time and various conversions can occur.

Only when responsible parties give their attribution processes enough time can these really contribute to improving marketing decisions. This ultimately leads to a better ROI, rather than making decisions based on fast real-time data.

What does marketing attribution software cost?

The cost of attribution programs depends on several factors. The most important factors are the number of supported channels, the scope and simplicity of APIs or integrations, the strength of analytics and reporting features, support and the possible ability to set up custom attribution models. The more features provided and the more complex and automated the analyses, the more expensive it gets.

The pricing model also varies from platform to platform. Many attribution software providers offer a free version of their system. The scope of functions is usually greatly restricted here. Alternatively, it is a trial version that offers the complete package, but is then only usable free of charge for a certain test period.

For extended requirements, some providers charge cents per conversion, while others offer monthly plans from around 100 euros and even significantly more. Here, active users can also decide on pricing.