B U I L D I N G T H E B U S I N E SS CAS E F O R AT T R I B U T I O N
CO NTEN TS 1. BUILDING THE B USINESS CASE FO R ATTRI B U T I ON. . . . . . . . . . . . . . . . . . . . . . . . . 3 2. DRIVERS FOR ATTRIB UTIO N. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 3. WHY BUILD A B USINESS CASE?. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 4. THE BU S INESS CASE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
BUILDING THE BUSINESS CASE F O R AT T R I B U T I O N An increase in marketing channels and devices, coupled with more complex consumer behavior, means that a true view of omnichannel performance for brands is no longer simply a nice to have. Although multiple touchpoints in customer journeys have resulted in a wealth of data being available to marketers, the challenge for most still is making sense of and taking action from this data. The CMO Club in partnership with Rakuten Marketing surveyed over 120+ leading marketing executives and discovered that 35%* of them are not currently using a robust measurement technique. Having access to a robust attribution solution plays a key role in executing a successful omnichannel strategy, and despite marketers seeing the value in it, incorporating sophisticated attribution modeling across the business is still easier said than done. In this guide, we will look at the importance of a business case in communicating the value of attribution to your wider business, how to go about putting the case together and * Omni What? Demystifying Omnichannel Marketing to Create a Winning Strategy for CMO’s
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common challenges and solutions you may face during the process.
D rivers for At t r i b u t i o n There are numerous benefits to obtaining a transparent view of channel performance, including:
comes to attributing their sales to marketing activity, with different sets of figures being quoted more often than not. With employees responsible for tracking data spending up to 50%* of their time searching for data, correcting errors and seeking sources to confirm data they deem questionable, it’s easy to see why
• Optimizing marketing performance and budget allocation While most standard analytics tools measure channel performance
achieving a true picture of where sales are coming from can be difficult. • Understanding complex user journeys
in isolation, assigning credit for a conversion to the last
Whether joining multiple devices to a universal user, or
touchpoint in the user journey, attribution will help you
understanding how online marketing activity impacts offline
understand which channels are actually working. This allows
sales, brands are increasingly needing to identify each
you to optimize your activity accordingly – whether that be
touchpoint in the consumer journey and determine what role
removing ineffective PPC keywords or re-assigning budget from
each one plays in generating a conversion. For brands who
display to affiliate marketing, for instance.
want a true picture of how their marketing efforts are working,
• Removing inconsistent channel reporting Many businesses struggle for a ‘single source of truth’ when it
it’s no longer enough to simply look at each channel or device in isolation. * Harvard Business Review
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W hy Buil d a B us iness Cas e? Once you’ve made the decision to go ahead with attribution, you’ll probably need to convince your boss and sell attribution into the business as a whole. A business case offers you the opportunity to pitch what can be a complex subject, in a way that is identifiable and relevant to your business. You should focus on the value that attribution modeling will bring to your brand specifically, rather than losing colleagues trying to explain the process behind modeling. Producing a business case can also help manage expectations for the attribution project from the wider organization (both in terms of timing and output) and help you raise the budget needed to get started. Ultimately, this is your chance to get buy in from key stakeholders at the start of your attribution journey and prove why your business should be investing in it.
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The B usine ss Case 1. Calculate the ROI If nothing else, the business case needs to justify your spend on attribution. This isn’t as difficult as you might think. As Marketing Technology Manager at Virgin Holidays, James Libor puts it:
“Budget is often seen as a big blockage, but the way I look at it is just 1% of your budget can tell you what the other 99% is doing. With that perspective, the cost doesn’t seem significant.” -James Libor Marketing Technology Manager, Virgin Holidays
By identifying 1-5% of your media budget that you can reallocate to attribution, you will ensure that the remaining budget is being spent in the right way. Once you apply attributed insights to the rest of your marketing spend, you’ll usually find 15-20% of ineffective spend (within 12 weeks) which can then be reallocated to where it will see the best return. For example, spending 1% of a $2M marketing spend, which saves you even just 10% of the remaining budget means a spend of $20K on attribution will result in a saving of at least $198K (based on a 10% saving on the remaining $1.98M budget). Don’t forget to explain the ongoing return from attribution for your business across the initial six months, first year and beyond. For instance, attribution modeling may allow you to identify a cost saving in your PPC budget, by removing ineffective keywords which are not driving conversions, without having any
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negative impact on your sales. 2. Address key questions or concerns
By capturing and answering these questions in the business case, you will save yourself a lot of time further down the line.
Attribution is a cross-channel project and all stakeholders must be
What’s more, asking key stakeholders for their input can help
onboard. Before you start writing your business case, it is useful
reassure them that their concerns are being addressed and
to conduct some research internally. This could take the form of
gets them onboard at the start of the process.
one-on-one conversations, or structured meetings with all key
3. Explain the value that will be achieved, and when
people in a room together. Either way, the aim is to address any
It’s useful to be upfront about what value attribution will uncover
burning questions that the business is likely to have on attribution.
for your business, and specifically when. This manages
For instance, there might be concerns from managers of
expectations, brings others on the attribution journey with you
currently siloed channels about how attribution is going to
and ensures transparency about the project. This is important
affect the perceived success (or not!) of their particular
for gaining trust and buy-in from your stakeholders.
channel. Or, perhaps your managing director wants to know what activity is driving new customers, or needs to realize the lifetime value of these new customers.
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Below is an example of the typical timeline for an attribution project at Rakuten Attribution:
4. Pricing There is a perception in the marketplace that volume-based pricing is standard. This method means that the more successful you are, the more you will end up paying. However, by going for a fixed price model instead, you will not be penalized for your success! What’s more, you’ll know the costs upfront at the start of your project, which makes budgeting far easier. Including these actual costs in your business case makes getting sign-off easier than having to rely on projected costs. 5. Remain focused A lot of people can get hung up on the algorithms and technology behind attribution modeling. When it comes to the business case, remember to step back from that and stay focused on the value it drives. It’s worth reiterating throughout that a shift in budget from ineffective activity to activity proven to be effective is not only avoiding further wasted spend, but it will also
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generate additional revenue at the same time. Your business case should include a plan that allows you to start taking action and answering the key questions that you’ve identified as relevant to your business quickly, rather than being too preoccupied with the attribution algorithm. As this guide explains, there are many reasons why building a business case is a vital first step in any attribution project. A good business case will address the key points outlined above to help ensure that any potential detractors or blockages find it difficult to argue with why attribution should be a priority, now. In short, creating a business plan should allow you to focus on the aspects of the project that are most in need of your time as a marketer.
Discover what Rakuten Marketing can do for your business Visit www.rakutenmarketing.com/attribution or call 1-855-776-0507
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