Have you heard about Google’s new Analytics Academy? It offers extensive training in Google Analytics and data analysis and helps you to prepare for the Google Analytics Individual Qualification. The first class in the academy, Digital Analytics Fundamentals, wrapped up on October 30th. We’ll be covering each unit for those who missed the deadline, and next up is “Conversion and Attribution”.
There are two important concepts to measure the customer journey along the funnel:
- Conversion Attribution
In Google Analytics (and digital analytics, in general) there are macro and micro conversions.
- Macro Conversion – occurs when someone completes an action that is important to your business. For ecommerce, the most important conversion would completing a transaction.
- Micro Conversion – is also an important action, but does not immediately contribute to the bottom line. These are also important to measure because it can help you understand where people are on their journey to macro conversions.
In marketing, we talk about attribution. Attribution is assigning credit for a conversion. We want to assign credit to the marketing channels in order to understand our return on investment for each marketing channel.
The most common type of attribution is last-click attribution. “Last-click” means that all of the value of the associated conversion is assigned to the last marketing activity that generated the revenue. For a long time, this was the best measurement available to marketers. But now, we are able to look at all of the marketing activity that helped create the conversion. In most instances, your customer will interact with your company or brand a few times before a conversion happens. Using the concept of an assist, we can attempt to understand the value of other marketing channels prior to the conversion.
There are many ways to assign value to channels. These include:
- First Click Attribution – assigning the value to the first click, the one that started the user on their journey. You might do this for particular channels that are good channels for initiating customers.
- Or you might assign a little bit of the value to each of the assisting channels in the customer journey.
The point of attribution is to better understand the value of each marketing channel and how these channels work together to drive conversions. This allows for better budgeting of your dollars.
Was this post helpful? Stay tuned because next up we’ll give you a step-by-step guide for creating your measurement plan.