[WUC 2016] Thomas Unruh, Head of Business Intelligence, Lesara | Full Picture Customer Journey Analysis

Full Picture Customer Journey Analysis

Thomas Unruh | Head of Business Intelligence

What is a customer journey attribution?

A random CONVERSION Journey

Click Click Click Click Click Click Conversion

SEM DIS DTI SEO br RET AFF much money

• The first customer touchpoint ( after a conversion ) to an upcoming conversion

100€

𝑖=0

𝑁𝑟 𝑐𝑙𝑖𝑐𝑘𝑠

𝐴𝑡𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑 𝑐𝑙𝑖𝑐𝑘 𝑣𝑎𝑙𝑢𝑒𝑖 = 100 €

• Which are the best channels to invest our marketing budget?

• Which of these channels are not relevant and why?

Conversion Journey Attribution

• What do we attribute?• Conversions (Orders, new customers, reading an article, watching a video, …)

• Conversion values (revenue, profit, clv, …)

• Why is it useful to attribute?• Allocate budget to marketing channels

• Understand their impact on customer journey

• Increase & decrease the value of touchpoints

Customer Journey

data

DATA CREATIVITY

• Be creative on the usage of your massive collected data

• “Big data” is the same as small data but more Analyze it

• Data quality Data connection Analysis Insights

• Enrich data Connect the “dots”

Relevant attribution influencer

First Click Last Click

U-Curve

* Models we might already know

Attribution influencer

• First touchpoint in the journey

• Time decay to conversion

• Last minute voucher redemption

• Session engagement

• No cost touch points (Direct type in, SEO, Social media, CRM)

• Ad Impression touch points

Find weighted attribution algorithm to optimize marketing spend

First click

Don‘t exclusivly award the first click of your conversion journey

• Attribute 100% to the firsttouchpoint of a customer

• Touchpoint has a strong impact on an upcomingconversion

Time decay

The closer the touchpoint to the conversion the more valuable it is

• Attribution based on the time difference between touchpointand conversion

• An exponetial function makessense to reward currentevents

• Example:

„Last minute voucher“ redemption

Don‘t reward „last minute vouchers“

• Voucher touchpoints whichare very close to theconversion should not beconsidered

• A voucher touchpointbetween the last checkoutstep and the success pagewould have a high share but is not relevant for theconversion

Session engagement

High engagement amplifies the probability of a conversion

• The value of the touchpointis based on the amount ofpageviews during the session

No cost touchpoints

Removing no cost clicks depends on the purpose of your analysis

Conversion journey analysis

Consider all channels

Allocation of marketing budget

Drop „no-cost“ channels

(SEO is seen as a channel withfix cost per month and no direct

performance impact)

Ad Impression touch points

Proove the relevance of an impression for your business

• Impressions could be included

• Example weight:

• Clicks 100%

• Impressions 50/30/20%

„THE“ Customer Journey Attribution Formula

Customer Journey

Here is why

Customer Journey attribution is always based on your business model

… does not exist!

Example calculation - based on an eCommerce Shop

xx + x1) 2) 3)

+ x

𝑖=1

# 𝑇𝑜𝑢𝑐ℎ𝑝𝑜𝑖𝑛𝑡𝑠

Attributed touchpoints including PAID & NON-PAID clicks

Analyze relevant channels leading to a conversion

First click

Time decay

Voucher redemption

Engagement

Attributed touchpoints including ONLY PAID clicks

Allocate your marketing budget to the "right" channels

First click

Time decay

Voucher redemption

Engagement

Thank you for your attention.

Thomas Unruh

Head of Business Intelligence | Lesara GmbH

Berlin, Germany

https://twitter.com/thomsen007

https://www.linkedin.com/in/thomas-unruh-28296956

www.lesara.de