Revenue Attribution
Revenue attribution connects data from various sources to determine which of your marketing efforts are contributing the most to your overall revenue figures. In other words, it’s a process that assigns value to the various facets of your marketing efforts based on their relative influence on conversions and, consequently, your revenue.
With revenue attribution, marketing teams can more easily connect purchases to the various elements that make up their wider marketing efforts—for example, X amount of sales came from Instagram ads which led to $Y in revenue at a customer acquisition cost of $Z. This is often referred to as a Marketing Qualified Lead, or MQL.
The key outcome of revenue attribution is finding out which marketing channels drive the most conversions. This enables marketing and sales teams to make more informed decisions about where to invest their resources for the best returns.
How to Measure Revenue Attribution:
Revenue Attribution FAQs
What is revenue attribution?
Revenue attribution connects data from various sources to determine which of your marketing efforts are contributing the most to your overall revenue figures. For example, X amount of sales came from Instagram ads which led to $Y in revenue at a customer acquisition cost of $Z.
What are examples of revenue attribution models?
Common revenue attribution models include:
First-touch – Credit is given to the first interaction that led to the sale.
Last-touch – Credit is given to the final interaction before the sale.
Multi-touch – Credit is distributed across multiple interactions throughout the buyer’s journey.
Linear – Equal credit is assigned to all touchpoints.
Time decay – More credit is given to interactions closer to the sale.
How is revenue attribution calculated?
Revenue attribution is calculated by assigning credit to different touchpoints in the sales pipeline based on their attribution to a sale. This is done using attribution models such as first-touch or multi-touch.