Modern shoppers will define the future of retail

The evolution of attribution

Let’s start by looking back at how attribution has developed. Before attribution, performance analysis was restricted to individual channels, but it soon became clear that the consumer behaviour we were seeing was not happening in isolation. This realisation led to the first multichannel rules-based models, which evolved into the statistically derived models we see today – the birth of the algorithm. In the years that followed ‘early adopters’ of attribution started to see huge benefits but there was a pause in uptake from onlookers who awaited validation of success.

We are now seeing a dramatic increase of interest in attribution and it’s no coincidence that this upswing coincides with the increasing complexity of the user journey. Attribution today offers a far more transparent view that enables businesses to understand the true behaviour of their customers, but it continues to be a hot and controversial topic. The drivers behind it are well known, but the term ‘attribution’ has almost become unhelpful when trying to communicate the breadth of value and opportunity that is unlocked by path to conversion and attribution analysis.

It is what you do with the data that counts

Many get caught up on the algorithm and technology: are you following a rules-based model? A statistical model? Is there machine learning? It’s an interesting technological debate and it is important to get the sharing right, but the focus should be on the outputs and what you do with the data.

Attribution enables marketers to understand their customers – how they interact, what they buy and their lifetime value. However, understanding user journeys that don’t end with a purchase is also an important step towards discovering what is actually working.

Many brands now recognise that attribution should underpin their marketing strategy, but understanding the user journey is only one piece of the attribution puzzle. If marketers use the insights to improve consumer experience, it is possible to drive even greater results.

Personalised advertising and emerging technologies

There has been a definite shift in focus to cross-device usability, which is an ongoing challenge for advertisers as new technologies emerge. When the iPhone 6 was launched it was clear that larger mobile screens made it easier to deliver a better experience to consumers. One of our clients, Red Letter Days, saw 94 per cent more revenue through mobile and tablet channels last year compared to 2013 over one of its biggest selling occasions, Father’s Day. Sessions on mobile devices were also up 175 per cent, suggesting that many shoppers are browsing and considering products on a mobile device, even if they are purchasing on another channel.

The advertising potential for wearables is also huge. Imagine a future where consumers are accustomed to the convenience of discount alerts when they pass retailers on the high street. A discount code from their favourite shop for those shoes they were looking at last week or a 50 per cent off voucher code from a nearby store they haven’t yet ventured into.

Over the years marketers have followed their instincts and become more ambitious with creative campaigns that resonate with millennials. Measuring the success of creative campaigns with attribution will empower marketers to make more confident decisions and validate spend on creative resource. They will be able to answer pressing questions such as; what is the incremental value of display? And, which affiliate drives the most sales? It is a complicated task and unique to each business, but the technology and expertise is there to make it happen.

Driving the omni experience with attribution

The future of retail will be defined by modern shoppers who have come to expect consistent experiences across multiple devices. As consumers, we want to browse and buy on the go or at home and we expect our favourite brands to keep up with evolving technologies. Adding to those expectations, retailers quick to embrace attribution like House of Fraser and John Lewis are already proving that it is possible.

Attribution is becoming an essential tool for understanding consumers and how brands are influencing their behaviour. As we continue along this path to creating the ultimate omnichannel shopping experience, priorities will begin to shift from the quest for the perfect algorithm to a focus on taking action and using attribution to drive real business value.

Join the conversation on Twitter #EvolutionOfAttribution @RakutenMKTG_UK or find out more at www.rakutenmarketing.co.uk/attribution

James Collins, MD, Rakuten Attribution (Europe), part of the Rakuten Marketing group

Tel: +44 1273 807272

Email: rm-sales@mail.rakuten.com

Web: www.rakutenmarketing.co.uk/attribution

Twitter: @RakutenMKTG_UK