It is important for every entrepreneur to realize that the millennial age doesn’t support the blind spending of money on marketing without first checking whether you are going to get any return of investment on your marketing investments. There are special tools, known as the marketing attribution tools, which can help you maximize your returns of investment, which will use each of your marketing to interact more with your customers. Before we go to the tools, let us understand what marketing attribution actually is. Marketing attribution is a concept that helps you establish a certain value to each of your marketing channels, and whether these channels should be give credit for the sale of your product. Now, this value will help you when you are calculating the returns of marketing investing for your business. As straightforward as it sounds, calculation marketing attribution is actually hard – what happens if the same customer is visiting multiple channels? For example, if a customer receives an email newsletter, and to know more about the bran, he/she visits the website and then after understanding the brand, he/she buys one of the many products on the store. So which one of these channels is going to get credit for the conversion? Now, this is where the tools come handy. Many big business go for sophisticated software technology that helps them get to this value – there are Bizable, Bright Funnel, Track Mavenn, ABMA Analytics and Attribution, etc. To choose the best software based on user reviews on Capterra.
If you feel these software are too expensive, you might want do the calculations yourself. Let us take an example here. If you decide to spend $10,000 on direct email newsletters, and out of the total people you contact, about a 100 of them (1 percent) buy your product, worth $200. Out of the 100 who buy your product, 50 of them buy it through your retail store, while the remaining 50 buy it through your web store. Now, you know the web store orders were directly linked to the emails, because those required a promo code that was sent only through the email. So, while the usual catalog that you issued gets credit for 75 out of the 100 orders (revenue amounts to about $15,000), the email newsletter will get credit for the remaining 25 orders (revenue amounts to about $5,000). So, you would divide your marketing budget accordingly.