Tips for Managing Attribution in an Omnichannel World, Part 2
In part one of this two-part series, I described the concept of omnichannel attribution, some of its associated challenges, and reasons why it's critical for retailers to get this right. Given its importance, what must retailers do to be successful? Effective omnichannel attribution will ultimately require the right technology platform, the right data to tie online and in-store behavior together, and the right level of organizational readiness.
The first pillar of effective omnichannel attribution is a technology platform that enables the following capabilities:
- Data integration: The platform must be able to integrate data from diverse sources such as POS, web analytics, ESP, direct mail and media execution partners with the underlying CRM database in order to gain a comprehensive view of customer behavior both in-store and online.
- Identity management: Identity management capabilities enable retailers to consolidate data from diverse data sources into a complete picture of the customer's engagement across all channels. This results in a retailer's ability to understand "event streams" for each customer.
- Analytics: The value of attribution comes when credit is accurately assigned to customer touchpoints. This is only possible with the use of predictive analytics techniques (as opposed to traditional last-touch or rules-based attribution approaches) and statistically sound approaches to testing and measurement.
The required technology infrastructure can be rolled out in phases. For example, a retailer may start with building out the required data integration and in parallel doing some preliminary analytics around effectiveness of specific touchpoints. At a subsequent stage, identity management can be layered in with more advanced attribution models.
Equally as important as the technology platform is the ability for retailers to tie digital behavior to the final in-store purchase. This is straightforward for retailers with loyalty programs, as transactions can be tied to a customer's account when they scan their card at the point of purchase. For retailers that don't have a loyalty program, the goal is to incentivize customers to provide information in-store (ideally an email address) through some sort of value exchange so the transaction can be tied to the event stream.
An example of a really innovative approach to gathering customer information at the point of purchase is Wal-Mart's recent initiative around electronic receipts. Customers can opt in for emailed receipts at the register by scanning a QR code on the printed receipt and entering their email address. This signs the customer up to receive electronic receipts going forward, while allowing Wal-Mart to tie transactions to the customer record. This is a great example of a value exchange that doesn't involve an offer or price reduction, and makes it easy for the customer to provide valuable information.
The final pillar of an effective omnichannel attribution program is organizational readiness. A consistent challenge retailers confront in realizing the benefits of better attribution is resistance from various stakeholders in the organization. Analytically driven attribution may end up challenging commonly held beliefs about what works and what doesn't in driving sales. Retailers must be prepared to manage these issues as part of the initiative. Gaining buy-in from all affected stakeholders up front and throughout the rollout will be critically important.
Training is also vital, specifically for in-store associates. The in-store interaction is a key opportunity to gather information about the customer, but this must be done in a respectful and effective manner. This may require additional training of in-store associates on customer service skills. Furthermore, techniques for gathering customer information may require additional systems or technical training.
Conclusion
While getting omnichannel attribution right will be challenging for most retailers, there's no question that the benefits will outweigh the costs by a significant margin. Understanding which marketing behaviors are most effective in driving online and in-store conversions and how this effectiveness varies by customer will enable retailers to truly optimize their marketing investment. Having the appropriate attribution infrastructure in place will enable retailers to quickly respond to changes in customer behavior. These insights will continually feed subsequent marketing activities so that engagement with customers becomes increasingly more personalized and relevant, and ultimately valuable for the retailer.
Chris Matz is vice president, retail and consumer goods, Merkle Analytics at Merkle, a customer relationship marketing agency. Chris can be reached at cmatz@merkleinc.com.