Challenges of Multichannel Attribution

Image courtesy of KROMKRATHOG at

Image courtesy of KROMKRATHOG at

     In spite of the advantages of the multichannel analytics it may sometimes become very challenging to run multi-touch campaigns due to the following factors:


       1. Complexity. Very sophisticated marketing skills and tools are required to accomplish the goal of running multi-touch campaigns. Common unique messaging across all channels  including direct mail, email, online solutions; tracking systems, database creation and maintenance, reporting will become critical tasks during the process of implementation and handling multi-touch marketing.


       2. Commitment. The managers should keep going and stay committed to the multitouch campaigns’ process even though early results are below expectations.


       3. Target market. The right target market guarantees 50% of success. It is essential to reach out to leads that are profitable with a low cost per acquisition.


       4. Channels’ effectiveness. Lack of understanding what channels are the most effective leads to waste in advertising spend and driving up the cost of acquisition.


       5. Retention. Very often retention is declining because the product is seen as a commodity.


       6. Acquisition aspects. An increased use of aggregators causes the cost of acquisition and retention to go up.


       7. Marketing database creation which requires technical expertise and skills. The marketing database ties the activity of each channel at the household/customer level. For example, Mary Town who resides on Main Street 123: Saw a banner ad online  and landed on the company’s website and filled out the form to purchase the beauty product. Two days later she received a piece of direct mail and called the Sales Center and provided Sales rep with personal information, but decided not to purchase. A week later she received an email and finally purchased the company’s product online.


       The marketing database ties these actions together for Mary Town by generating a household id of 1 and assigning these touchpoints to this specific household id of 1, therefore the marketer clearly sees that Mary Town was exposed to a banner ad, received a piece of direct mail and email prior to purchasing the product.


       The limited success of one-touch campaigns is being emphasized in a variety of research studies. Experience shows that single touch campaigns are not effective and do not impact the customer’s decision to make a purchase. One the one hand, very often marketers make misleading conclusions that direct mail, the telephone call or email didn’t work, however it is essential to remember that the customer should be contacted at least 5 – 7 times via various channels in order to start a meaningful dialogue. On the other hand, there is a list of rules that should be kept in mind before entering the world of multichannel marketing:


       – There is no one right channel for every business. The choice depends upon the characteristics and behavior of the audience which could potentially be investigated through surveying current customers in order to determine what sources are being used for information collection about the company’s products.


       – It is more efficient to start with two or three channels, the ones that are already being used by the customers and then gradually start adding new platforms.


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