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Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
INVESTING IN THE RIGHT DIGITAL CHANNELS
Jan-Herm Maarleveld, Account Executive
Erwin Huizenga, Consultant Customer Intelligence
Version 1.0
September 2015
“How to get started with multi-touch attribution modeling in the travel industry and generate a higher ROI”
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
A MARKETER'S
CHALLENGE
“WE WANT VALUE-FOR-MONEY FROM OUR DIGITAL MARKETING
CAMPAIGNS.”
• Step 1 – What is my optimal media mix (budget allocation)?
• TV
• Radio
• Print
• Digital
• Step 2 – Which (combination of) digital channels provide me the
optimum conversion in a customer journey?
• Organic search (Search Engine Optimization)
• Paid Search (Search Engine Advertising)
• Affiliate network
• Social media
• Email
• Display Advertising (app, websites etc.)
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
ATTRIBUTION
MODELS
COMMONLY USED FOR DIGITAL MARKETING
• Media Mix modeling
• Budget allocation at highest level.
• Commonly used attribution models in “Digital”
• First Touch
• Last Touch
• Linear
• Position-based (40-20-40)
• Time Decay
• Pros & Cons of these commonly used models.
• “Having one attribution model is better than having no attribution model at all.”
• Assumption-Driven vs. Data-Driven.
• Easily implemented and applied.
• Predefined attribution models are easy to use (…but that may lead you to predefined
conclusions).
• Applicable for simple attribution paths (…but when you have a greater number of channels,
the more robust attribution model you need).
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
MULTI-TOUCH
ATTRIBUTION
WHAT IS IT? AND HOW DOES IT WORK?
• What is it?
• “Multi-touch attribution is a data-driven method that enables organizations to determine the relative value of each impression or
click during the customer journey.”
• How does it work?
• A statistical analysis of historical customer data (e.g. touch point sequence, conversion rate, revenue, margin) provides input for
creating a statistical model.
• This model generates different “contribution factors” for the touchpoints, depending on their frequency and position in the
customer journey.
• The contribution factor determines the share of revenue allocated to that particular touch point.
Contribution factor Web App Mail Social
Position 1 0.25 0.00 0.45 0.15
Position 2 0,60 0.75 0.00 0.00
Position 3 0.30 0.00 0.25 0.00
Position 4 0.00 0.00 0.00 0.30
Allocation per journey Web App Mail Social Revenue
Customer Journey 1 0.25 0.00 0.45 0.15 € 925,00
Customer Journey 2 0,60 0.75 0.00 0.00 € 0,00
Customer Journey 3 0.30 0.00 0.25 0.00 € 450,00
Customer Journey 4 0.00 0.00 0.00 0.30 € 350,00
Sequence Web App Mail Social Revenue
Customer Journey 1 1 2 3 4 € 925,00
Customer Journey 2 1 2 - - € 0,00
Customer Journey 3 2 - 3 1 € 450,00
Customer Journey 4 3 2 - 1 € 350,00
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
MULTI-TOUCH
ATTRIBUTION
ESTIMATE THE REAL EFFECT OF EACH TOUCHPOINT YOUR CUSTOMERS
JOURNEY
Organic
Search
Affiliate Social Media Purchase
61% 29% 10%
Example of 1-1 Customer Journey
€379
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
MULTI-TOUCH
ATTRIBUTION
HOW TO GET STARTED
Collect & prepare
(new) data
Make data-driven
‘maps’ of customer
journeys
Build your analytical
model on data:
sequences, touch
points, contribution,
weights etc.
Apply your model to
new purchases
Create a dashboard
with the results
1
2
34
5
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
6 KEY POINTS OF MULTI-TOUCH ATTRIBUTION MODELING
Travel organizations can now take fact-based decisions about
their digital marketing budget allocation, through
data-driven analysis and modeling of (historical and current) customer journeys, that
provide insights about touchpoints’ actual influence on conversion and contribution, to
generate the highest Return-on-Investment (ROI).
fact-based decisions
digital marketing
budget allocation
data-driven
analysis
and modeling
actual influence on
conversion and contribution
customer journeys
Return-on-Investment
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
LEARN MORE ? PLEASE CONTACT US AT…
• SAS Institute Netherlands
• http://www.sas.com/nl_nl
• Jan-Herm Maarleveld
• Phone: +31(0)35 – 699 69 00
• E-mail: jan-herm.maarleveld@sas.com
• Erwin Huizinga
• Phone: +31(0)35 – 699 69 00
• E-mail: erwin.huizinga@sas.com
• Crystalloids
• http://www.crystalloids.com/
• Marcel van der Marck
• P: +31(0)20 – 888 4849
• E: m.vandermarck@crystalloids.com
Copyr ight © 2013, SAS Institute Inc. All rights reser ved.
sas.com

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Investing in the right digital channels

  • 1. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. INVESTING IN THE RIGHT DIGITAL CHANNELS Jan-Herm Maarleveld, Account Executive Erwin Huizenga, Consultant Customer Intelligence Version 1.0 September 2015 “How to get started with multi-touch attribution modeling in the travel industry and generate a higher ROI”
  • 2. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. A MARKETER'S CHALLENGE “WE WANT VALUE-FOR-MONEY FROM OUR DIGITAL MARKETING CAMPAIGNS.” • Step 1 – What is my optimal media mix (budget allocation)? • TV • Radio • Print • Digital • Step 2 – Which (combination of) digital channels provide me the optimum conversion in a customer journey? • Organic search (Search Engine Optimization) • Paid Search (Search Engine Advertising) • Affiliate network • Social media • Email • Display Advertising (app, websites etc.)
  • 3. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. ATTRIBUTION MODELS COMMONLY USED FOR DIGITAL MARKETING • Media Mix modeling • Budget allocation at highest level. • Commonly used attribution models in “Digital” • First Touch • Last Touch • Linear • Position-based (40-20-40) • Time Decay • Pros & Cons of these commonly used models. • “Having one attribution model is better than having no attribution model at all.” • Assumption-Driven vs. Data-Driven. • Easily implemented and applied. • Predefined attribution models are easy to use (…but that may lead you to predefined conclusions). • Applicable for simple attribution paths (…but when you have a greater number of channels, the more robust attribution model you need).
  • 4. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. MULTI-TOUCH ATTRIBUTION WHAT IS IT? AND HOW DOES IT WORK? • What is it? • “Multi-touch attribution is a data-driven method that enables organizations to determine the relative value of each impression or click during the customer journey.” • How does it work? • A statistical analysis of historical customer data (e.g. touch point sequence, conversion rate, revenue, margin) provides input for creating a statistical model. • This model generates different “contribution factors” for the touchpoints, depending on their frequency and position in the customer journey. • The contribution factor determines the share of revenue allocated to that particular touch point. Contribution factor Web App Mail Social Position 1 0.25 0.00 0.45 0.15 Position 2 0,60 0.75 0.00 0.00 Position 3 0.30 0.00 0.25 0.00 Position 4 0.00 0.00 0.00 0.30 Allocation per journey Web App Mail Social Revenue Customer Journey 1 0.25 0.00 0.45 0.15 € 925,00 Customer Journey 2 0,60 0.75 0.00 0.00 € 0,00 Customer Journey 3 0.30 0.00 0.25 0.00 € 450,00 Customer Journey 4 0.00 0.00 0.00 0.30 € 350,00 Sequence Web App Mail Social Revenue Customer Journey 1 1 2 3 4 € 925,00 Customer Journey 2 1 2 - - € 0,00 Customer Journey 3 2 - 3 1 € 450,00 Customer Journey 4 3 2 - 1 € 350,00
  • 5. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. MULTI-TOUCH ATTRIBUTION ESTIMATE THE REAL EFFECT OF EACH TOUCHPOINT YOUR CUSTOMERS JOURNEY Organic Search Affiliate Social Media Purchase 61% 29% 10% Example of 1-1 Customer Journey €379
  • 6. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. MULTI-TOUCH ATTRIBUTION HOW TO GET STARTED Collect & prepare (new) data Make data-driven ‘maps’ of customer journeys Build your analytical model on data: sequences, touch points, contribution, weights etc. Apply your model to new purchases Create a dashboard with the results 1 2 34 5
  • 7. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. 6 KEY POINTS OF MULTI-TOUCH ATTRIBUTION MODELING Travel organizations can now take fact-based decisions about their digital marketing budget allocation, through data-driven analysis and modeling of (historical and current) customer journeys, that provide insights about touchpoints’ actual influence on conversion and contribution, to generate the highest Return-on-Investment (ROI). fact-based decisions digital marketing budget allocation data-driven analysis and modeling actual influence on conversion and contribution customer journeys Return-on-Investment
  • 8. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. LEARN MORE ? PLEASE CONTACT US AT… • SAS Institute Netherlands • http://www.sas.com/nl_nl • Jan-Herm Maarleveld • Phone: +31(0)35 – 699 69 00 • E-mail: jan-herm.maarleveld@sas.com • Erwin Huizinga • Phone: +31(0)35 – 699 69 00 • E-mail: erwin.huizinga@sas.com • Crystalloids • http://www.crystalloids.com/ • Marcel van der Marck • P: +31(0)20 – 888 4849 • E: m.vandermarck@crystalloids.com
  • 9. Copyr ight © 2013, SAS Institute Inc. All rights reser ved. sas.com

Notes de l'éditeur

  1. Updated: December 2012