Data-driven attribution
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- Bartholomew Hines
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1 Data-driven attribution with Jaywing Measure the true impact of your marketing and maximise ROI with individual-level attribution.
2
3 What is attribution? In marketing, attribution is the science of identifying and assigning proportional value ( ) to each touchpoint that influences a customer to make a purchase.
4 The Challenge 4
5 The customer journey has never been more complex Marketers must evolve measurement methods to keep up with customers and competitors. In today s rapidly evolving marketplace, diverse customer segments use multiple devices to interact with a broad spectrum of marketing touchpoints, encompassing inbound and outbound, online and offline communications from browsing to broadcast. Collecting, measuring and interpreting this activity is essential to fine tune your messaging and optimise marketing spend to target the right customers at the right time, for maximum impact. Fortunately, brands can access more data and processing power than ever before. The challenge is to accurately and efficiently harness these resources to generate a wealth of actionable insights. Data-driven attribution 5
6 The Solution 6
7 Advanced attribution modelling The foundation of better decision making Jaywing s advanced attribution modelling approach enables businesses to:»» Capture every customer interaction.»» Assign monetary value to each marketing touchpoint. The result is enhanced insight into customer behaviour and the role that marketing actions play in the path to purchase. This leads to improved marketing strategy and more successful tactics.»» Interpret the data to understand customer behaviour and make robust, evidence-based decisions for answering questions like: What is the true value and ROI of my marketing activity? Which channels should I allocate my marketing budget to? How can I enhance my marketing channel performance? Which marketing channels and messages are most effective for each customer segment? What is the next best action to nudge my customer towards a purchase? Data-driven attribution 7
8 Why conventional methods won t cut it cut it Unfortunately, businesses rarely understand the full effectiveness of their marketing. This is due to the limitations of A/B testing and basic attribution modelling methods: A/B testing can only explain how each marketing channel performs independently. It can t tell you how every channel works together. Standard position or rule-based models are easy to build and hence very popular. But such models are inherently biased and simplistic, resulting in poor decision making. 8
9 Beware the self-fulfilling prophecy Your choice of rule based attribution model can determine what your business value upfront with little evidence leading to a cyclical pattern of investment. For example: Linear attribution (valuing every touchpoint equally) can result in a situation where every display advert you serve before a sale would get credit. Double the number of ads, double the credit. This focus on volume favours lower cost marketing channels which may or may not be delivering real-value. Last touch attribution (only valuing the last touchpoint before the sale) results in favouring closing touchpoints like branded PPC often to the detriment of awareness raising touchpoints, which can harm the long-term health of your brand. In short, whatever standard or rule-based model you choose to value will direct spend to certain channels, leading to a sub-optimal marketing investment strategy. Only advanced attribution modelling can overcome this problem. Data-driven attribution 9
10 Trans your ma Jaywing s data-driven attribution modelling manages complexity and eliminates bias, enabling you to: Understand the role of each touchpoint in the customer journey Track engagement across the digital and physical worlds We give you the ability to assess the impact of your marketing from awareness, to consideration and conversion so you can tailor your comms to deliver the right message at the right time on the most appropriate channel. With the right data, attribution modelling can measure the relationship between online marketing and offline sales. Physical touchpoints, like store visits, can be included in the journey and value attributed to both in-store and e-commerce sales. 10
11 form rketing Derive deeper insights into customer behaviour Our solution measures the impact of marketing at an individual level, enabling you to create a more granular level view of all of your customers and prospects. This enables you to view insight by customer segments and create more timely and relevant messaging via the most effective channels resulting in a better customer experience. Allocate budget for maximum impact When you have the whole picture, you can make smarter investment decisions. With Jaywing s advanced attribution modelling, you can identify and invest in the most profitable channels and campaigns to optimise your ROI. Data-driven attribution 11
12 How does it work? 12
13 1Collecting and connecting data at an individual-level Tracking every customer interaction with each marketing touchpoint enables businesses to build up a complete picture of the customer journey. We help you to capture and cleanse this individual-level data, which forms the foundation of accurate attribution and the first step to understanding the true impact of your marketing. What is individual level customer data? Individual customer data is the merged and linked data gathered on a person, including all online and offline data points. This can encompass a customer s buying history, the marketing they have been exposed to, browsing history, device usage, search history, as well as any personal information they have shared (e.g. name, age, mobile number, address) and demographic data declared. Using proprietary technology, we track customers across multiple channels and devices, combining data from online and offline sources, including:»» Marketing data (digital and offline events)»» Brand interactions (browsing behaviour and in-store visits)»» Customer research (third party demographic data, attitudinal segments and/or behavioural segments)»» Sales data (in-store and e-commerce sales) Our holistic approach sets us apart from many standard attribution approaches which only show a snapshot of the customer journey. Our customer data collection solution enables you to identify individuals and connect multiple purchases to one customer. Without it, brands often treat each purchase as a new customer journey and therefore cannot build a true picture of the interaction of a customer with a business over time or gain a clear view of the true impact of their marketing activity. With our solution you can. We include physical as well as digital touchpoints (e.g. store visits) as well as traditional broadcast marketing using impression data (the probability of an individual seeing a TV ad given what is known about the customer and the TV targeting strategy). This individual-level data is cleansed and connected to create a comprehensive single customer view (SCV). Jaywing s technology platform uses sophisticated procedures in order to collect, integrate and secure individual level data. The resulting SCV is the foundation to building predictive models that improve customer experience and optimise marketing effectiveness. Data-driven attribution 13
14 2Transforming data into actionable insights Applying advanced modelling Sophisticated processing with full transparency Harnessing individual-level data and applying advanced modelling techniques, we accurately allocate the value of each marketing touchpoint in the customer journey. Our systems may be sophisticated, but we don t believe in hiding them in an impenetrable black box. True partnership demands transparency, so we share our approach: 1. Powerful model A powerful model, developed using sophisticated machine-learning statistical techniques, ingests granular information about all customer journeys, including type and timing of marketing exposures. The model learns from successful and unsuccessful journeys to predict with accuracy the probability of any journey resulting in a sale. 2. Event combinations A complex procedure is applied to every successful journey, creating all possible theoretical subset journeys. It does this by systematically eliminating single and combinations of events. These theoretical journeys are then passed through the model and the probability of success for each journey is calculated. 14
15 3. Shapley value The Shapley value is a fair way of calculating how each piece of marketing activity has contributed to the sale. It is determined by comparing the probability of a sale, based on every theoretical purchase journey a customer could make, with and without interactions with each piece of marketing activity. This enables you to measure the influence that each marketing channel has on sales. 4. Attribution The Shapley value converts to income and can be aggregated up over all successful journeys. As well as accurately valuing all touchpoints in the customer journey our modelling approach also quantifies base sales which is defined as the value of sales that would have occurred if the customer was not exposed to any marketing. This gives a measure of residual brand awareness plus any influences that are not explicitly captured in the journey, ensuring that the marketing impact is accurately valued. The output is a highly accurate measure of the incremental sales resulting from channels and campaigns for each customer group. Data-driven attribution 15
16 Analysing and executing Visualising data, ensuring impartiality and generating actionable insights Attribution modelling can only add value to a business if the insights gathered are turned into action. We generate a custom-built suite of reports and dashboards according to your specific needs enabling you to interrogate data and answer key business questions, drive investment decisions and optimise ROI. You can access reports directly and we can provide data cubes to import them into your own visualisation tools. Generating and actioning insight Jaywing s expert team of impartial consultants works with you to extract relevant information, develop insight-led hypotheses, and create and execute a pragmatic test and learn plan to improve the effectiveness of your marketing spend. Optimising budget Using Jaywing s budget optimiser tool you can run budget scenarios, facilitating testing and evaluating varying investment tactics to better understand the impact of marketing activity. This helps refine the allocation of budget and ensure that channels and campaigns are truly optimised. 16
17 Personalising communications Using advanced attribution models, you can better understand how each marketing event contributes to the customer journey and use this insight to develop more personal communications. Jaywing s Action Optimiser Tool enables: 1. Next best action: Calculate the best next action for an individual by determining which marketing activity will most improve the probability of them completing the journey successfully, or will generate the greatest ROI. Implementing with your partners And we don t stop there. We work closely with business stakeholders and other marketing agencies, like ourselves, in order to facilitate efficient implementation of the plan and measure its impact ensuring your data is transformed into real-world value. 2. Channel selection: You can determine which customers would best respond to marketing comms from a specific channel. You can then choose the customers for whom that marketing activity would most improve their success probability. 3. PPC Bid guide: You can identify the customers for which the PPC bid amount should be adjusted, based on how much their success probability would be improved by a PPC event. It can help direct customers to the most appropriate landing page on your site. These actions enable you to accurately and efficiently target relevant communications, further improving the effectiveness of your marketing. Data-driven attribution 17
18 About Jaywing Jaywing is a major data science-led UK agency that employs around 700 specialists in the fields of marketing, customer management and credit and fraud risk regulation and management. 1 in 10 is a heavyweight data scientist. We are dedicated to our collaborative approach that brings hand-picked teams of specialists to each client challenge across a host of sectors to connect powerful ideas, rich data and new technologies. Our team of data science specialists is now more than 70 strong. In the last two decades, we have worked extensively within industry sectors that are data rich, data literate and able to drive value from the data they hold. Working with the likes of Swinton Insurance, Jet2, Irwin Mitchell and Avios, Jaywing has delivered Single Customer View (SCV), personalisation, price optimisation and attribution projects. 18
19 Ready to unlock the power of attribution? Attribution modelling allows you to uncover deep insights into customer behaviour and reveal the true impact of your marketing helping you to deliver timely, tailored communications that optimise conversion, boost retention and maximise ROI. When you work with Jaywing, you get: Individual-level data from multiple channels - see the whole customer journey, online and offline Highly sophisticated modelling techniques - eliminate bias and generate deep insights Market-leading data management and compliance - security and peace of mind Bespoke reporting and impartial consultancy - formulate a plan that s right for you For more information on how to join together online and offline data and apply advanced attribution modelling, get in touch: Olly.Sowden@jaywing.com. Data-driven attribution 19
20 jaywing.com SHEFFIELD LONDON NEWBURY SWINDON LEEDS SYDNEY Albert Works 71 Sidney Street Sheffield S1 4RG Kirby Street London EC1N 8TE Albion House 27 Oxford Street Newbury RG14 1JG Arclite House Century Road Peatmoor Swindon SN5 5YN The Small Mill Chadwick Street Leeds LS10 1LJ Suite Elizabeth Plaza North Sydney NSW 2060 Australia JAYWING PLC is registered in England and Wales. Albert Works, 71 Sidney Street, Sheffield S1 4RG. Company number
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