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