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Marketers use single and multi-touch attribution models to determine which touchpoint contributed to the final sale.

Attribution models are the tools that provide information about the interactions, or touchpoints, that lead to a person responding to commercial or other marketing stimuli. Depending on their company model and the path prospects take to become customers, marketers can utilize various models. Marketers frequently run multiple campaigns across several platforms. It may be challenging to determine which channels have the most significant impact on the final sale. As a result, attribution modeling can assist marketers in determining the contribution of individual channels and touchpoints to the conversion. A company must choose an attribution model according to their marketing approach and objectives.

Two types of attribution models:

Single-touch models

A single touchpoint along the consumer journey is credited in single-touch attribution models. It could be the first or final interaction with the customer.

First interaction attribution: This model gives credit to a potential customer's first interaction with a company. This interaction can be online, at a trading event, or any other interactive event. The first touchpoint usually initiates the sale and is credited with 100 percent of the sales credit. However, this approach may neglect additional touchpoints that occur during the buying process and have a substantial impact on the final sale.

Last interaction attribution: this model gives 100 percent of the sales credit to the last interaction. Just like the first interaction, the last interaction may also overlook other touchpoints.

These single-touch attribution models are more accessible for marketers to use and provide fairly constant information on the success or failure of an engagement.

Multi-touch models

Linear approach: The linear attribution model provides the most democratic approach. All touchpoints are given equal credit, regardless of where they fall in the sequence or how much of an impact they had on the buying process.

Time decay: The time decay model gives more credit to the touchpoints that were close to the conversions. The idea behind this model is that as the sale approaches, the desire to make a purchase grows stronger.

Position based: Position-based attribution model provides credit for the sale to the first and last touchpoints. The first and last touchpoints each attain 40 percent of the credit, with the remaining 20 percent distributed equally among the remaining interactions.

Last non-direct click: Non-direct click attribution model gives all sales credit to the customer's most recent non-direct engagement. It's also obtained from non-direct traffic to websites, including social media posts, email campaigns, and influencer marketing efforts.

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