While most B2B marketers know Jay Baer as a jedi of content and suit style, what you may not realize is that he’s also a total data nerd when it comes to attribution. Just take a look at one of his many posts about how to measure the ROI of your content marketing or social media, and you’ll know that when it comes to attribution, Jay means business.
In our recent 9-minute webinar, or ‘webinine,’ as Jay calls it, he laid down some fuego reasons as to why marketers should be tracking down their impact on pipeline and revenue. As Jay put it, “marketers that measure are marketers that matter” and we couldn’t agree more. Today’s buyers taking different paths to sale, which makes it unsurprising that Forrester credits 75% of the B2B buyer’s cycles as being owned by marketing. This means marketing is even more competitive than ever before and to beat out your competition or even climb the next level in the career ladder, you’re going to need to start putting your money where your mouth is and became a marketer that measure if you want to matter.
Sound a little daunting? Have no fear, we’ll outline some of the tactics Jay mentioned on our recent webinar that you can use to tie back marketing to ROI and revenue.
#1 Choose the Right Attribution Model
OK – so you’re ready to be a marketer that measures, so what do you do first? Well, before you begin down the path of attribution, you’ll need to pick the right model before you start your quest for ROI. Essentially, what you want to decide is how to connect the dots from a set of user actions (clicking an email, downloading an ebook) to the desired revenue outcome (pipeline and closed-won dollars).
Attributing specific values to each of these events is an important step in understanding what drives customers to make a purchase and where attrition occurs. There are three main attribution models take different angles to arriving at these insights:
- First-touch attribution: This model assigns revenue credit for the deal to that initial point of contact. Whichever campaign brought your lead into the funnel gets 100% of the credit.
- Last-touch attribution: This falls on the opposite end of the spectrum from first-touch attribution, crediting the final touch point with converting the lead to an opportunity.
- Multi-touch attribution: Multi-touch attribution accounts for each step of the journey. This can be done through a linear model, in which each step is weighted equally, or through a more nuanced model that emphasizes touch points with higher influence.
But which attribution model is right for your business? As Jay pointed out in the webinar, the truth is that marketers need multiple models since any of these three attribution models can prove fitting in certain situations.
By using them in conjunction with metrics such as velocity, which measures how quickly a campaign moves prospects through the pipeline, and others that quantify resource allocation (Cost Per Order, Cost Per Deal) you can go further on your quest of understanding of ROI and how to optimize it.
#2 Start with A Heavy Hitter: the Marketing Impact Report
There’s a reason you’ll want to run this report first if you’re tying your marketing to ROI and revenue and that’s because this is your money report. In a nutshell, marketing impact reporting measures how each marketing activity has sourced or influenced pipeline and revenue for your business.
Since marketing impact reporting looks at all channels and campaigns, it’ll help you keep an eye on everything you do. Be sure to look at how marketing impact is trending over time to make sure that the team is influencing an increasing amount of pipeline and revenue. To do this type of reporting in Excel, if you have a pivot table whiz on your team, or you can do attribution tracking in a marketing analytics tool, like BrightFunnel.
#3 Get Granular: Track Your Channel Performance
Channel performance reports are my personal favorite since they help you understand which channels are performing the best across the board. This shows you how channels such as online ads, tradeshows, or email blasts are doing. And best of all, you can track this from multiple perspectives to see how these channels are performing throughout the funnel.
When measuring your channel performance, you’ll need to keep track of your full channel mix to see what channels bring leads in and what channels influence leads from opportunity-to-close. By understanding what channels work best for your business you can a) choose the corresponding offer that maps to where a lead is in his buying journey and b) you can better plan your marketing mix throughout the year.
Ready for more insights? Watch the recording of Jay Baer breaking down How to Tie Marketing to Revenue and ROI in 9 Minutes!