Talk about an alarming statistic about revenue attribution…
According to research conducted by the analyst firm Aberdeen Group, 51% of marketers aren’t sure how their efforts objectively connect to revenue. Eek.
Additionally, 17% of the marketers Aberdeen surveyed aren’t even sure if they have any kind of revenue attribution model in place. If over half of marketers don’t how their work connects back to the bottom line, and about a quarter of them aren’t even measuring their impact in the first place, then there’s a serious problem.
As Aberdeen’s report says, “Revenue attribution models are explanations for how marketing efforts translate to business value.” Without revenue attribution, marketers can’t understand what they’re actually accomplishing for the organization. And if marketers can’t understand what they’re accomplishing, they can’t drive smarter business decisions and earn their seat at the decision-making table.
But it’s not all bad news for B2B marketers.
In addition to pointing out how far behind the majority of B2B marketers are when it comes to measurement, Aberdeen’s knowledge brief also talks about the various attribution models that are available to marketers who want to connect their efforts to revenue. And to shine some light at the end of the tunnel, the report also shows us how best-in-class marketers (defined as the largest subset of top performers) are using attribution to measure their activities.
One interesting tidbit that the report points out is that best-in-class marketers are 2.8X more likely to use a weighted revenue attribution model, which equates touch points with different weights depending on definitions that are customized for (and unique to) specific businesses. This is the most sophisticated level of revenue attribution, and can be derived from insights gleaned by using the other three models (first-touch, last-touch, and evenly-weighted) together.
What did we ultimately take away?
One—that marketers who want to be taken seriously need revenue attribution in order to measure their impact on the business. And two—that the best way to measure that impact is by using all of the different attribution models together. This allows marketers to see the full picture, and then use what they learn to make more intelligent, business-driving decisions down the line.
Does your CMO or overall marketing team need an attribution reality check? Download the full report to read all about Aberdeen’s findings.