Attribution modeling - or the allocation of a conversion event to a customer interaction - is important to determine how a marketing activity is performing. The challenge is that customers often have multiple interactions prior to conversion. Combine that with the many different ways you could attribute conversion and you end up with a fairly complex situation. So, do you just throw your hands up in the air and give up? I recommend not. Just take a deep breath, grab a cup of coffee or tea, and finish reading this post.
But before I get into the details on the different types of attribution models, I should mention there is no one model that is considered the best. Each model has its pros and cons, depending on the situation and business need. But there are ways you can compare them. I came across this method of comparison from Klaviyo where they suggested that different attribution models can be regarded on a continuum based on simplicity vs precision.
The following chart uses the idea of Klaviyo’s Simplicity-Precision continuum to show where some of these most common attribution models fall. Below the chart is a table (clickable image) that provides the descriptions and illustrations of how each attribution model works along with their pros and cons.