What is Position Based Attribution?
Position based attribution, also known as U-shaped attribution, is a model used in digital marketing to allocate credit for conversions across multiple touchpoints in a customer’s journey. Unlike first-touch or last-touch attribution models that give full credit to either the initial or final interaction, position based attribution acknowledges the importance of both the first and last touchpoints while also distributing some credit to the interactions that occur in between.
How Does Position Based Attribution Work in Email Marketing?
In the context of email marketing, position based attribution assigns credit for a conversion to multiple emails that a user interacts with. Typically, 40% of the credit is given to the first email interaction (first touch) and another 40% to the last email interaction (last touch). The remaining 20% is distributed among the intermediate touchpoints. This approach ensures that both the initial engagement and the final push to conversion are recognized, while also acknowledging the role of the emails in between.
Holistic View: It provides a more comprehensive understanding of the customer journey by acknowledging multiple touchpoints.
Better Resource Allocation: By understanding which emails contribute most to conversions, marketers can optimize their
email marketing campaigns more effectively.
Increased Accuracy: This model reduces the risk of overvaluing or undervaluing specific emails, leading to more accurate performance metrics.
Complexity: Implementing this model can be more complex compared to simpler models like first-touch or last-touch attribution.
Data Integration: Accurate position based attribution requires robust
data integration across various platforms, which can be resource-intensive.
Subjectivity: The percentage of credit assigned to different touchpoints is somewhat arbitrary and may not suit all business models.
Identify Touchpoints: First, identify all the email interactions that can potentially influence a customer’s decision.
Set Attribution Rules: Define the percentage of credit to be assigned to the first, last, and intermediate touchpoints.
Use Analytics Tools: Utilize email marketing analytics tools that support position based attribution to track and measure performance.
Analyze and Optimize: Regularly analyze the data to understand the performance of different touchpoints and optimize your campaigns accordingly.
Examples of Position Based Attribution in Email Marketing
Consider a scenario where a customer receives three emails before making a purchase: Email 1: Introduction to the brand
Email 2: Information about a product
Email 3: A discount offer
In a position based attribution model, Email 1 and Email 3 would each receive 40% of the credit for the conversion, while Email 2 would receive 20%. This distribution acknowledges the importance of both the first touch (brand introduction) and the last touch (discount offer), while still giving some credit to the informational email in between.
Best Practices for Position Based Attribution
To make the most out of position based attribution, follow these best practices: Regularly Update Your Model: Adjust the attribution percentages based on new data and changing customer behaviors.
Integrate with CRM: Ensure your
CRM system is integrated with your email marketing platform for seamless data flow and accurate attribution.
Continuous Testing: Regularly test different attribution models to see which one aligns best with your business goals.