Linear Attribution: E-Commerce Explained

Understanding Linear Attribution

What is Linear Attribution?

Linear attribution assigns equal credit to all marketing touchpoints that occurred throughout a customer’s journey. In other words, if a customer visited your website after seeing an ad on Google, then clicked on an email link, and finally made a purchase after visiting the website again from a social media post – each touchpoint would receive an equal amount of credit for the sale.

Linear attribution is a popular attribution model because it is simple and easy to understand. It gives credit to every touchpoint in the customer journey, which can help businesses understand the effectiveness of each channel in the conversion process.

The Importance of Attribution Models in E-Commerce

Attribution models are crucial for e-commerce marketers. By accurately assigning credit to each touchpoint, businesses can understand which channels are delivering the most conversions and adjust their campaigns accordingly. This can lead to more effective marketing efforts and an improved return on investment (ROI).

Without attribution models, businesses may not be able to accurately measure the success of their marketing campaigns. They may end up investing in channels that are not driving conversions, which can waste valuable resources and hurt their bottom line.

How Linear Attribution Works

Linear attribution works by assigning equal weight to all touchpoints in a customer journey. This means that each channel – whether it be display ads, social media, email, or something else – is given an equal amount of credit for the sale.

For example, if a customer sees a display ad, clicks on a social media post, and then receives an email prompting them to return to the website and make a purchase – each touchpoint would receive 33% of the credit for the sale.

Linear attribution can be useful for businesses that have a relatively short and simple customer journey. However, for businesses with longer and more complex customer journeys, linear attribution may not accurately reflect the impact of each touchpoint.

It’s important for businesses to consider their unique customer journey and choose an attribution model that accurately reflects the impact of each touchpoint. This can help businesses make informed decisions about their marketing campaigns and drive more conversions.

Comparing Linear Attribution to Other Models

Linear attribution is just one of several models that businesses use to understand which marketing channels are driving sales. Let's take a closer look at some of these other models.

First-Touch Attribution

First-touch attribution gives all the credit for a sale to the initial touchpoint that brought the customer to your website. For example, if a customer clicked on a Facebook ad and then made a purchase, all the credit would go to Facebook. This model is useful for businesses that want to know which channels are best at generating initial interest.

However, first-touch attribution can be problematic because it doesn't take into account all the other touchpoints that may have influenced the customer's decision to make a purchase. For example, the customer may have also seen a Google ad and received an email before finally clicking on the Facebook ad.

Last-Touch Attribution

Last-touch attribution gives all the credit for a sale to the final touchpoint that led to the conversion. For example, if a customer clicked on a Google ad and then made a purchase, all the credit would go to Google. This model is useful for businesses that want to know which channels are most effective at driving immediate sales.

However, last-touch attribution also has its limitations. It doesn't take into account all the touchpoints that may have influenced the customer's decision to make a purchase. For example, the customer may have seen a Facebook ad and received an email before finally clicking on the Google ad.

Time-Decay Attribution

Time-decay attribution assigns more credit to touchpoints that are closer in time to the sale. For example, if a customer clicked on a Facebook ad, received an email, and then clicked on a Google ad before making a purchase, the Facebook ad would receive less credit than the Google ad because it was further away in time from the sale. This model is useful for businesses that want to understand which channels contributed to customers who were convinced to make a purchase after several touchpoints.

Position-Based Attribution

Position-based attribution gives the most credit to touchpoints that were closest in time to the beginning and end of a customer journey. For example, if a customer clicked on a Facebook ad, received an email, clicked on a Google ad, and then made a purchase, the Facebook ad and the Google ad would receive the most credit because they were closest in time to the beginning and end of the customer journey. This model is useful for businesses that want to reward channels that first attracted a customer’s attention and ones that led to a final conversion.

Overall, each attribution model has its strengths and weaknesses. Linear attribution is a good choice for businesses that want to give equal credit to all touchpoints in the customer journey. However, it's important to remember that no single model can provide a complete picture of how customers are interacting with your brand.

Implementing Linear Attribution in Your E-Commerce Strategy

Setting Up Linear Attribution Tracking

The first step to implementing linear attribution is to ensure that you have access to the data necessary to properly track and evaluate your marketing efforts. This can be achieved through the use of analytics tools such as Google Analytics or Adobe Analytics.

Analyzing and Interpreting Data

Once you’ve collected the necessary data, it’s time to analyze and interpret it. Look for patterns or trends that can help you understand which touchpoints are contributing the most to conversions. Use this information to optimize your campaigns for maximum effectiveness.

Adjusting Your Marketing Efforts

Finally, use the data you’ve collected to adjust your marketing efforts. For example, if you notice that social media is consistently driving the most conversions, consider reallocating some of your budget towards that channel.

Pros and Cons of Linear Attribution

Benefits of Using Linear Attribution

Linear attribution is a simple and easy-to-understand model that assigns equal credit to all touchpoints. This makes it a good starting point for businesses that are new to attribution and unsure which model to use.

Limitations and Drawbacks

One major limitation of linear attribution is that it fails to take into account the impact that certain channels may have on other touchpoints in a customer’s journey. For example, a display ad may be responsible for initially attracting a customer to your website, but may not receive enough credit if a customer later makes a purchase after being influenced by other channels.

Additionally, linear attribution does not account for variables such as customer behavior or purchase intent – which can have a major impact on whether or not a conversion occurs.

Is Linear Attribution Right for Your Business?

The answer to this question depends largely on the goals and needs of your business. Linear attribution can be a useful tool for businesses that are just starting to explore attribution, but may not be the best choice for those with more complex marketing campaigns or customer journeys.

Ultimately, e-commerce marketers should carefully consider their options and choose an attribution model that aligns with their goals and can help them make better-informed decisions about their marketing efforts.