The importance of eCommerce Attribution

Online stores are becoming more and more popular and due to their efficiency and convenience, today’s shoppers have become far more than one dimensional, as they constantly encounter new online experiences and platforms. 

 

Thus, given the cross-channel nature of today’s consumer, ecommerce store owners are urged to consider the amount of money being spent in the digital space and ask themselves the following questions:

 

“What value do my marketing channels and campaigns have?”

“Am I spending my money wisely?”

“What channel of attribution is the most effective?”

“Am I retaining my customers?”

“Who is my main target audience?”

“At which touchpoint did the lead convert?”

“Which source actually lead to the conversions?”

 

Answering these questions is equally important, and the only way to do so is to understand that the eCommerce Attribution Model is more than Google’s “Default Channels” or “Source/Medium”.

 

Understanding the most common eCommerce Attribution models

 

First Click Attribution

The goal is attributed to the first interaction. For example, if a user’s website visit was prompted by a Facebook Ad, then they visited your website again via Google Search, the conversion is attributed to the Facebook Ad.

 

Last Click Attribution

In The last interaction model the goal is attributed to the marketing channel that brought the customer to your website during the last session of their journey. This is the most common and unfortunately the most inaccurate. Since it awards credit to the last interaction, it disqualifies any effort put into previous interactions such as social media, emails etc – it has a somewhat ‘incomplete nature’. 2

Linear Attribution

Attributed to all channels involved prior to the purchase. This model distributes credit to every interaction that prompted the call to action and the conversion.

 

Last Non-Direct Click

This is the standard model used by Google Analytics. 100% of the credit is attributed to the last clicked channel within the user’s journey. However this does exclude any direct channels, but also undervalues any  previous interactions and awareness that may have prompted the direct sales. 

Time Decay Attribution

This attributes a small amount of credit to each touchpoint, however, the closer the interaction is to the actual sale, the more credit it is awarded.

“Thinking about ecommerce attribution is simply attempting to add granularity to your marketing analytics and to spend money and time more wisely.”2

 

Effective Tracking

Using an effective campaign builder and creating a correct UTM (Urchin Tracking Module),  is the most important part of the overall process. Should a campaign or ad not be tracked correctly, the user’s entire journey goes ‘undocumented’. Therefore all forms of interaction including calls, emails, chatbots, whatsapp messages, social ads, google ads, email signatures (and even non-digital media), should be tracked in order to effectively analyse the channels that may have prompted the interaction or conversion.

This helps the owner, or agency, to make better decisions when deciding where to invest more money, based on which channel is more effective.

 

How does this affect ROI Tracking?

Since the provided data enables the owner to track which platforms perform better than others, they are able to allocate budget to the high performing platforms that work best and therefore save time and money that may have been wasted on non-performing platforms. 

 

Integrating Google Analytics with CRM

Although Google Analytics assists in measuring the effectiveness of your inbound website marketing campaigns, a CRM platform stores data of your consumer’s offline activity. This is done by capturing the data collected emails, sms’s, social messages, whatsapps, skype and phone calls creating an attribution beyond the ecommerce store. An effective  CRM provides you with information including sale stage processes, hot/warm or cold leads, lead income, user loyalty, surveys and customer retention. This information, combined with Google Analytics data, forms a powerful remarketing tool. 6

Therefore, with the use of eCommerce Attribution Models, you are able to understand user’s journey as a whole and get a better understanding of which model will work best for your organisation. This allows you to allocate the necessary amount of money to the correct platforms and therefore save costs, increase revenue, generate new business and increase consumer retention and satisfaction.

We’ll be posting our next blog on how we use Bitrix24 CRM to measure offline attribution.

Keep an eye out!

Behavioural Economics in Ecommerce

Behavioural Economics in eCommerce

Behavioural Economics in Ecommerce

Insights of behavioral economics that can be applied in eCommerce :

What is behavioral economics? It is a term that is becoming more and more familiar on a global level in eCommerce. Combining psychology and business, behavioral economics looks at decision making processes from an economic perspective in both individuals and institutions. Why people make the decisions they do based on cognitive, contextual, social and emotional factors. Behavioral economics is not only concerned with the “why” it also looks at the inner workings of how these have an effect on the economic environment.

The first Insight that is addressed explains default behavior and how this can be used to enhance online engagement. Take a look at this example found in an online lecture on Behavioral economics, from the University of Toronto by Dilip Soman, found on edX online Courses. He explains the organ donation rates between different countries. How is this related? Read on, It’s astounding.

Organ donation rates in Canada are 2.5% and in Austria 99%, thats a huge difference. Why? We look at the processes of engagement that donors have to go through.  Have a look at the two processes below :

Organ Donor Process

As Dilip explains in the lecture, the difference is in their default assumption and this has a direct effect on decision making. Humans are lazy, two ways of looking at this : if you need a particular outcome,  check your process of engagement, what processes are in place that inhibit or enhance the outcome. Are you steering consumers on your site the right way, and is it a smooth drive or a bumpy ride? Consider the potential obstructions that consumers will need to overcome in order to land at the desired destination on your page. This default technique is not necessarily restricted to steering consumers, think of the possibilities of applying it in your online marketing strategy. Also consider that defaults signify “sameness” and grouping,  the “everyone else is doing it” effect is strong in decision making.

Decision making is not as easy to trace as we would like it to be, as individuals we are all unique in the reasoning behind decision making. However we are all human, and humans are creatures of habit, therefore we create patterns of behaviour, consciously or subconsciously, according to our own personal frame of reference as well as external environment. This is what we can observe and take forward into the online business world.

To learn more about how we can help grow your online business visit Shopping Directs’ services page now. Contact us for any further information here. We also suggest to check out our infographic on Consumer psychology and eCommerce Checkout process for more insights.

Online Business Points

Instagram Stories

5 Effective Tactics for Using Instagram Stories for Your Business

Instagram Stories

Instagram recently launched Instagram Stories – a new way for people & businesses to share photos or videos, in an auto-play slideshow format, that disappears after 24 hours.

Instagram users have embraced this integrated Snapchat-cloning feature, that boasts 100 million views per day.
“Stories” seems to be a real game-changer, not only for the everyday user but also for brands.

Instagram’s new functionality can help your business drive sales, enhance your company’s reputation and engage with potential customers, by showing another side of your brand’s personality and giving additional context to better connect with your target audience.

Don’t know where to start? Here are 5 effective tactics you can use to your company’s benefit.

1. SALES PROMOTION
You can use Instagram “Stories” to highlight a limited-time promotion of any of your products or services. “Stories” will allow you to extend the marketing message in a less Instagram-centric and more interactive way that’ll help you draw your audience’s attention, as the content will appear at the top of their feeds. You can also offer a discount code that will make your followers feel special, as it’s just available for them. The best way would be to share an image or video of the product, talk about why it’s so awesome, and then add the discount code on top.

2. SHOWCASE A ‘REAL’ CUSTOMER EXPERIENCE
An effective technique for retail brands is to showcase an authentic customer experience on “Stories”.
For example, a young woman testing her newly acquired yoga pants by working out.

This will enable your brand to get followers so close to your product they can feel it breathe and can connect to it more deeply. It will come across as an organic product review by a customer backing up your brand.

3. SNEAK PEEKS & BEHIND THE SCENES
If you’re currently working on an upcoming product launch or working through something step-by-step, you can add to your Instagram story as you go. Share the process of designing, cooking or editing.

Don’t keep the behind the scenes for yourself, they could help harness excitement for your work-in-progress and create hype around your launch. People love to see and comment on the process of a product, as much as they love to see the end result. Once your product is ready, we suggest doing a quick walk-through of what you’ve created along with info on where to buy.

4. IMPORTANT ANNOUNCEMENTS OR EVENTS
We strongly suggest using “Stories” to announce important news, rather than just posting it on your Instagram feed. The fact that the “Stories” slider is positioned at the top of your feed makes it more likely to be seen by users. It’s a great opportunity to let your followers know that you’re about to broadcast on Facebook Live, just published a new blog post or will be hosting a cool event next week. Don’t forget to include a short link to the website you want your followers to check out. Mentioning incentives such as a giveaways will always increase engagement.

5. QUICK TIPS OR ADVICE
Many lifestyle brands have started using “Stories” to talk directly to their audience and show off their personal voice on social. Help your customers with styling tips or offer a quick webinar related to your product or service. Starting a dialogue by sharing tips or advice will show your followers that you care about them. It’s recommended to turn on the message feature or point them to your latest Instagram post to allow your audience to respond or ask questions. Building a positive emotional relationship with your followers will increase your brand’s credibility and value.

Now that we’ve got you covered with the tactics, it’s up to you to come up with your brand’s first Insta Story!