Hello, and welcome to another episode of Growth Detectives. I am your host, Chris Planeta. And in today's episode, we are going to talk about conversion attribution and different attribution models. And also I'll tell you why I don't like using attribution modelling, why I will never include attribution information in custom reports that I make for my customers and what I use instead.
So let's dive in.
First, what is attribution modelling? What's conversion attribution?
For those of you who don't know, conversion attribution has one goal - to attribute part of conversion's value to different traffic sources that took part in the customer's journey. So for example, if somebody visits a page five times, every time from a different source from Google Ads, Facebook Ads, Google search, et cetera; each of these, let's call them, touchpoints should get 20 percent of the conversion value.
But in reality, it's never so simple. Why is that?
First because for the data to be precise, you actually need to know the full customer journey with all the touchpoints. However, nowadays, it is almost impossible to know it.
Why is that? First of all, because users use different devices, they switch from their mobile phone to a laptop to a company computer. And so you can never know. You can never be 100 percent sure if somebody visits your website for the first time or is it a consecutive visit.
Next, people use browsers or browser extensions that block tracking scripts. And these tracking scripts are indispensable to start tracking attributions. So this is reason number two.
And reason number three - the problem with Apple iPhones.
The thing is that iPhones or applications in iPhones that open websites or open links - usually I'm talking like about social media applications - they don't pass referral information to the website when it gets opened after somebody clicks a link in those apps.
And so Google Analytics or other tracking tools actually have no way of knowing whether someone came from an application or from a different source.
There is simply no referral information.
And the fourth problem is with those tracking tools themselves. Because even though there is a problem with referrals or missing referral information in iOS devices however, this information is present in Android apps. So when somebody clicks a link in a Facebook Messenger on Android, there is this referral information getting passed through.
However, this information is simply not understood by Google Analytics or other tools. And, all of this means, that the touchpoints, the traffic sources that you're seeing in your reports, are very much incomplete. So, in my view, this is one huge disadvantage of conversion attribution.
The second reason why attribution modelling, in my view, is something that you shouldn't actually touch, is the fact that, well, there are many different models of attribution. You can attribute the conversions or the whole value of the conversion to the first source to the last source, divide it equally among all the sources or some combinations of them.
There are also AI engines that try to solve this riddle - to put different values to different sources. But depending on which model you choose, you will get different data. So, well, actually, so what's the best model? There is no, best model. And that's the problem. So if the data that you based your conversion attribution on is incomplete and the attribution and every attribution model is imperfect, then why to use attribution modelling? So, these are the two reasons why I don't use attribution modelling. However, I will tell you what I use instead, and this is a very simple solution. However, I have not seen it discussed anywhere on the internet. So let me share it with you.
The idea is very simple. When people visit your website, they do some actions. Some of them leave the page after three seconds. However, other people can stay there for longer.
They can, I don't know, sign up to newsletters, they will open galleries, view products they can add products to cart, et cetera. So what I do is, I track these actions and apply point value to all of them. And this point value is then sent to tracking tools.
And after some time, I create custom reports and see how many points were gathered by specific traffic sources.
Like for example Google Ads or a particular Google ad gathered 650 points, then a different one got 20, things like that. So even though I don't attribute conversions or a part of the conversion value to these sources I can clearly see whether people who come from a specific source are potential customers, whether this source is valuable or not. And then this information is also very, very valuable to the marketing department.
So yeah, this is basically it. Take care. Bye bye.