Conversion and conversion attribution
- Define the term "conversion"
- Explain how marketing attribution works in Google Analytics and why understanding attribution is important for good analysis
- Understand the “last-click” attribution model versus other models
- A macro conversion occurs when someone completes an action that’s important to your business. For an ecommerce business, the most important macro conversion is usually a transaction.
|Example, a customer performing a macro conversion on an e-commerce site|
- A micro conversion is also an important action, but it does not immediately contribute to your bottom line. It’s usually an indicator that a user is moving towards a macro conversion.
|Example, a customer performing a series of micro conversion which may indicate a macro conversion may happen|
- It’s important to measure micro conversions because it helps you better understand where people are in on the journey to conversion.
|Micro conversion can help your understand how customers are going through a journey|
- Attribution is assigning credit for a conversion.
- We want assign credit to our marketing channel in order to understand the return on a marketing investment for each specific channel.
- The whole point of attribution, is to better understand the value of each marketing channel, and how multiple channel work together to drive conversions. We then use this knowledge to better the customer journey and allocate your online marketing budget accordingly.
|We need check the marketing channel investment is returning more in revenues|
Model of Attribution
- There are few popular attribution models we can discuss when it comes to conversion in sites. We will look at last-click, first-click, linear attribution.
- All the value associated with a conversion, is assigned to the last marketing activity that generated the revenue. Last marketing channel gets all the credit.
|Assigning the credit of a revenue to the last click|
- But we can do better, we also want to understand which channel is assisting the one that generated the revenue. This concept is called Assist.
- Hence, a conversion is more similar to "team playing"
|Similar to a basketball game. Before a goal is made, a few players need to assist the goal|
- We think about our marketing channels as players assisting each other, until a conversion is made.
|We can think of out marketing channels assisting until a channel score the goal|
- Another model is assigning all the value to the first channel. This is called first-click attribution
- The reason we might want to do this, because we want to understand the channel as a good channel to initiating a conversion
- We can also assign the value equally to each channel. Not sure when to use this model.