RevRocket's Guide To Marketing Attribution & UTMs

Marketing (or revenue) attribution can be a complex topic to navigate.

Let's consider a scenario:

• A prospect interacts with a Facebook Ad
• Explores your website
• Signs up for a free trial
• And ultimately converts on a special offer sent via email.

Determining which touch point played the most significant role in the prospect activating requires a strategic approach to marketing attribution and how to track it in this modern buyer era.

In this comprehensive guide, we will provide definitions of the leading marketing attribution models, offer tips on selecting the most suitable model for your company, define how to build UTMs into your URLs, and share best practices for creating an impactful marketing attribution report.

So let's get going!

Various attribution models have been developed to comprehend the intricacies of a buyer's journey. In the following discussion, we will provide a brief overview of the distinctive features of each model and explore instances where their application can enhance and inform your marketing strategy.

First-Touch Attribution

The first-touch attribution model attributes all credit to the initial touchpoint a customer encounters. For instance, if a lead discovers your product through a blog post and subsequently signs up for a free trial, the first-touch attribution would attribute the conversion primarily to the blog post.

Last-Touch Attribution

In contrast, the last-touch attribution model assigns all credit to the touchpoint just before the conversion. Consider a scenario where a customer first learns about your service through a webinar but converts after receiving a targeted email. In this case, the last-touch attribution model would credit the email as the primary reason for the conversion.

Linear Attribution

The linear attribution model distributes credit equally among all touchpoints, recognizing the contribution of each. If a customer's journey involves interacting with your social media ads, visiting your website, and receiving an email, linear attribution would assign equal credit to each touchpoint for the conversion.

Lead-Conversion Attribution

This model focuses on the progression from lead to conversion, crediting touchpoints that contribute to the lead generation process. For instance, if a lead undergoes a series of email nurturing campaigns before converting, the lead-conversion attribution model would acknowledge the role of these emails in the conversion.

Time Decay Attribution

Timing takes precedence in this attribution model, with touchpoints closer to the conversion receiving more credit. Suppose a lead engages with your company through multiple touchpoints over several weeks before subscribing; time decay attribution would give more credit to interactions in the days leading up to the subscription.

Position-Based Attribution (U-Shaped Attribution)

Also known as U-shaped attribution, this model assigns higher credit percentages to the first and last touchpoints and less to those in between. For example, if a lead discovers your product through a Google ad, engages with your content on LinkedIn, and converts after a demo, position-based attribution would emphasize the significant roles of the Google ad (first touch) and the demo (last touch).

W-Shaped Attribution

Similar to U-shaped attribution, W-shaped attribution allocates credit to the first, last, and one or more touchpoints in between. Suppose a prospect discovers your software through a PPC ad, interacts with your blog content, attends a webinar, and finally converts after a personalized email. W-shaped attribution would recognize the importance of all the first and last touchpoints and any impactful touchpoint in between in the conversion journey.

Custom Attribution

Custom attribution enables businesses to create their own model tailored to their unique needs and objectives. For instance, a SaaS company might create a custom attribution model that places more weight on webinars and free trials, based on their discovery that these touchpoints significantly impact conversions.

Multi-Channel Attribution

This model assesses the impact of marketing efforts across various channels, acknowledging that customers often engage with a mix of channels before converting. If a customer interacts with your company through social media ads, email campaigns, and direct website visits before subscribing, multi-channel attribution would evaluate the combined influence of these channels on the conversion.

Weighted Multi-Source Attribution

Weighted multi-source attribution assigns distinct weights to different touchpoints based on their perceived importance, allowing for a more nuanced assessment. For instance, a company might give higher weight to a live demo than to an initial website visit, considering customer data that demonstrates the substantial impact of demos on conversions.

Choosing the best marketing attribution model requires a deep understanding of your unique position in the market and your customers’ behaviors. Here are some things to consider before deciding: 

Assess Campaign Types and Channels

Tailoring your marketing attribution model involves a thorough comprehension of the diverse campaigns and channels embedded in your growth marketing strategy. Each facet, be it social media, email, paid advertising, or content, plays a unique role in shaping the customer journey.

For instance, a SaaS company heavily leveraging webinars for conversions might find a custom or weighted multi-source attribution model more fitting.

Evaluate Channel Impact on Customer Journey

Examine how customers traverse your marketing channels leading up to conversions. Identify the channels they engage with most frequently and those serving as pivotal steps before conversion.

Understanding this journey dynamics allows alignment of your attribution model with precision. For instance, if your typical customer discovers your company through organic search, interacts with downloadable content, and converts after a personalized email, opt for an attribution model acknowledging the significance of each touchpoint.

Consider Customer Engagement Preferences

Factor in how your customers prefer engaging with your brand across various channels before conversion. A multi-channel or W-shaped attribution model might be apt if customers interact across diverse touchpoints. Conversely, if conversions typically follow private consultations with sales reps, a simpler attribution model could prove more effective.

Digital Sticky Notes = UTM Parameters

As detailed in Unveiling the Power of UTM Parameters: Shedding Light on the Dark Funnel, UTM parameters are simple snippets of code that you can add to the end of a URL, allowing you to track the effectiveness of your marketing campaigns. Think of them like tags or sticky notes attached to your content as it circulates through digital channels.

For example, let's say you're running a summer sale campaign on social media. By adding UTM parameters to the links you share, you can distinguish traffic from different social media platforms (such as Facebook, Instagram, or Twitter) and evaluate which one drives the most conversions.

These tags are appended to the URL as query parameters and are easily identifiable by their distinct format: utm_source, utm_medium, utm_campaign, utm_term, and utm_content.

Let's break down each UTM parameter:

1. utm_source: This parameter identifies the source of your traffic, such as a search engine, social media platform, or email newsletter. For example, if you're running a campaign on Facebook, you would set utm_source=facebook.

2. utm_medium: The utm_medium parameter specifies the medium through which your traffic is arriving, such as organic search, paid search, social media, or email. For instance, if you're running a paid search campaign on Google Ads, you would set utm_medium=cpc.

3. utm_campaign: This parameter helps you identify the specific campaign or promotion that is driving traffic to your website. It allows you to differentiate between different marketing initiatives, such as a summer sale, a product launch, or a holiday promotion. For example, if you're running a campaign called "SummerSale2022," you would set utm_campaign=SummerSale2022.

4. utm_term: The utm_term parameter is primarily used for tracking keywords in paid search campaigns. It helps you identify the specific keywords that are driving traffic to your website. For example, if you're bidding on the keyword "summer dresses," you would set utm_term=summer+dresses.

5. utm_content: This parameter allows you to differentiate between different versions or variations of your marketing materials. It is particularly useful when running A/B tests or multiple variations of an ad. For instance, if you're testing two different ad creatives, you would set utm_content=ad1 or utm_content=ad2 to track their performance separately.

By utilizing these UTM parameters, you can gain granular insights into the effectiveness of your marketing efforts.

They provide a standardized way to track and analyze the performance of your campaigns across various sources, mediums, and campaigns. With this data, you can make data-driven decisions, optimize your marketing strategies, and allocate your resources more effectively.

How UTM Parameters Help Attribution Models

Now that we understand the basics of UTM parameters, let's explore their role in attribution models.

Attribution models are analytical models that help businesses understand how different marketing touchpoints contribute to a conversion or purchase decision.

UTM parameters play a crucial role in attribution models by providing accurate data on the journey of a customer from the first exposure to your brand to the final conversion.

With this information, you can determine which marketing channels or campaigns are driving the most value and allocate your resources accordingly.

Need A Boost? RevRocket Tip - Download Our UTM Template 🚀

A marketing attribution report allows you to analyze the impact of each marketing channel and decide if the chosen attribution model is appropriate for you.. 

Here’s how you can create one. 

Gather the Data from All Marketing Channels

To create a meaningful marketing attribution report, you first need to gather data from all the marketing channels and touchpoints you’re using, like:

• Google Analytics data for website interactions.
• Email marketing performance metrics (e.g., open rates, click-through rates).
• Data from advertising platforms (e.g., Facebook Ads, Google Ads)
• CRM data, including lead interactions, conversions, and pipeline progression.

Analyze the Data to Create a Report

Next comes the crucial part: analyzing the data to create your marketing attribution report. 

Start by defining what a “conversion” means for your company. Is it a product purchase, a newsletter sign-up, or a free trial subscription? Make sure you and your team have a shared definition for accurate reporting. 

Next, examine how customers move through your various marketing channels. Track their interactions from the first touchpoint to conversion. This might involve using tools like Google Analytics, marketing automation platforms, or a CRM.

Now, it’s time to apply your selected attribution model and see how well it reflects the reality of your customer journey. Measure its outputs versus actual outcomes.

With the model in place, you can now dissect the results to pinpoint which touchpoints are responsible for conversions and the extent of their influence.

Now, it’s time to put it all together in a comprehensive report. Your marketing attribution report should provide a clear picture of how different channels and touchpoints contribute to conversions. 

Lastly, share the report with your team and stakeholders for review. Discuss the insights and recommendations that emerge from the attribution analysis. Are there channels that need more investment? Are there areas where the customer journey can be optimized?

Let’s now discuss some attribution best practices to ensure you’re using technologies and data to its full potential.

Set Clear Goals and Objectives

Decide what you want to achieve with your marketing efforts, whether it’s increasing conversions, boosting ROI, or expanding your customer base.

These goals provide direction and purpose to your attribution efforts, guiding you toward meaningful insights.

Use the Right Metrics to Measure Success

Using the right metrics is intrinsic to successful marketing attribution and connecting RevOps to your revenue generation efforts. It ensures that you’re tracking the correct data and interpreting it correctly to allocate credit accurately.

Monitor and Adjust Models as Needed

Regularly check and adjust your attribution models based on new data and changing marketing strategies.

• Are there new marketing channels or campaigns you’ve launched that must be factored into your attribution model?
• Has customer behavior shifted, making a different attribution model more relevant?

Use Data to Inform Future Strategies

Leveraging data to inform future strategies is at the core of effective marketing attribution. By identifying which channels and touchpoints are most effective in driving conversions, you can allocate resources wisely and optimize your strategies for maximum impact.

Revenue, campaign or marketing attribution is a powerful tool for understanding the impact of your revenue generation efforts and optimizing your strategies, tactics, actions, and technologies, (STAT).

But remember: the goal is to select a model that provides the most accurate picture of how your revenue generation or marketing efforts contribute to conversions. 

Don’t settle for the default or most straightforward option!

Instead, take the time to explore and tailor your attribution model to your specific business, customer behaviors, and campaign intricacies.

Gaps in your Revenue Attribution?

Like RevOps, marketing attribution is only one component of the overall revenue you're generating for your business. Take our four-minute pre-launch quiz to see how you stack up. This will help us identify valuable insights and connect the dots with your current current state that is impacting revenue generation throughout the entire buyer's journey.

Now, it’s your turn.