Macro & Micro Conversions
Macro: Action that is inherently important to your business
- Micro: Action that in indicative of a user moving towards a macro conversion. This doesn’t directly contribute to your bottomline like the macro conversion.
So why do we care about micro conversions? These are indicative of a customer's steps towards making a macro conversion, highlighting the early actions of a customer's digital journey before a purchase. Now that we know the different types of conversions, how do we go about attributing them to the proper sources to know what's working and what isn't?
Attribution is assigning credit for a conversion, whether it be a search ad, display ad, social ad, etc. Attribution allows you to better understand the value of each marketing channel to your company and how multiple channels work together to drive conversions.
Utilize attribution models to better understand your ROI on investment through your various marketing platforms and better inform your next marketing budget decision.
To find the attribution reports, go to the menu options Conversions --> Attribution --> Model Comparison Tool.
Once you are on the report, there will be a drop-down menu from which you can choose the model you want to view or compare. There are quite a few options, but we're going to dive into those now
- Last-Click attribution: All the value associated with the conversion is attributed to the last marketing activity the user experienced, but how do you understand the value of all the other marketing activity for your company?
- Last AdWords Click attribution: This one is pretty self-explanatory after reading the last attribution model. This attribution model gives credit to the last AdWords campaign that the customer click on, no matter what. For example, even if they clicked on an email you sent out, it would still attribute their conversion to the AdWords campaign. Use this attribution model to easily generate a return on spend for your Adwords campaigns. You have all of the Adwords costs readily available at your fingertips.
- First-Click attribution: All the value associated with the conversion is attributed to the first marketing channel the user interacts with. This is a good way to understand the best channels for initiating conversions. The First-Click attribution model is a great option for new companies & websites because exposure and getting your name out in the market is your most important goal.
- Linear attribution: Assign the value associated with the conversion spread across equally to all the marketing channels that were part of the customer’s journey to conversion. This attribution models work great with larger conversion cycles because there is a much longer period of exposure and consideration that goes into conversions. For example, if your customer clicked on 1 Facebook ads, 3 Instagram ads, and 1 email over 3 months before converting, then each one of those would get 20% of the conversion credit.
- Time Decay attribution: This is very similar to the linear model, except that it attributes credit based on how long ago the interaction was. For example, the oldest interaction gets the least amount of credit while the interaction that directly led to conversion will get the most credit. This is a great model to account for the fact that historic marketing efforts become less and less important as time goes on. People tend to forget about something they interacted with 6 months ago, even though it may be in the back of their mind.
- Positioned Based attribution: Last-click attribution and First-click attribution combined into one! By default, the first and last interactions receive 40% of the conversion credit, while the remaining 20% is spread amongst the middle interactions.
Now that you know and understand all the different types of attribution models what should you do next? Use it! Now you can run tests to compare your instagram efforts with your email efforts, and better inform your marketing spend in the future!
Remember to reach out to us if you have any questions! We're always happy to help.
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