Using Multichannel Attribution Increases Retailer’s Profits by 15%
As digital channels continue to expand and grow, companies are looking to intelligently allocate additional funds to their online marketing efforts, via channels like display ads, paid search, social media, and mobile.
A large publicly-traded retailer of Consumer Packaged Goods was looking to devote more dollars to search marketing endeavors in 2011. However, the client wanted to ensure that any additional money spent on paid search would drive incremental orders, and not simply “cannibalize” sales that would have already been captured through different channels. When marketing budgets are large, channel cannibalization represents a material concern.
The client turned to RKG’s Attribution Management solution to prove marketing budgets and reduce cannibalization amongst channels. With visibility into more than just the first or last marketing touch that drove an order, the client gained the ability to assess whether a marketing channel drove an order “unassisted”, or if it was part of a larger path of touches that might include other digital or offline channels.
Through collaboration with RKG’s Attribution Analysts, the client established a set of custom Attribution Profile for credit distribution. This profile aligned with the client’s goals of ensuring that each additional marketing dollar spent would lead to incremental returns.
With confidence that they would be able to accurately track and analyze the return coming from any increase in marketing spend, the client was able to increase daily paid-search spend by 25%, driving a 15% increase in profits, all while still meeting their efficiency targets. Per the client’s custom Attribution Profile, this increase came from orders driven exclusively by paid search, and did not include orders from customers who may have interacted with a search ad but ultimately purchased after clicking on an additional channel.