What is Revenue Attribution? A Detailed Guide

Revenue attribution is a useful method for the identification and assigning of value to touchpoints in marketing. It provides credits to the touchpoints resulting in revenue. Additionally called marketing attribution, it is crucial for B2B companies or businesses. Its utilization can clarify to them complex processes such as buyers' journeys. For this usage, several models are available along with which revenue attribution can work. They range from single-touch to multi-touch attribution. Depending on how it functions, the method can create its importance for businesses. By attributing revenue, they can detect several touchpoints, understand conversions in-depth, make forecasting better, and do more.

What is Revenue Attribution?

A process through which value is detected and assigned to marketing channels or touchpoints is called revenue attribution. Its functioning depends on the related influence on revenue, conversions, and pipelines. Also known as marketing attribution, this process links diverse data sets for determining the effort that is driving revenue.

Who Requires the Revenue Attribution Model?

Typically, businesses require implementing revenue attribution. It can help them understand the extent to which their sales, marketing, and customer services are crucial. Take into account that the journey of customers and the process of buying business-to-business products can be complex. The use of this model can minimize gaps among departments to ensure their understanding of these processes.

Furthermore, it is significant to be aware that in B2B organizations, usually, revenue departments are focused on credit. The use of the revenue attribution model can introduce this awareness among others as well. Such awareness can encourage contributions regarding effective strategies from several teams.

With Which Models can Revenue Attribution Be Used?

The revenue attribution process can be used with several models of attribution. The use cases can differ, on the basis of the sector as well as touchpoints, sales cycle duration, etc. Primarily, the models include rule-based, multi-touch, and single-touch attribution.

Single-Touch Attribution

The single-touch attribution model is of 2 types, i.e. first and last. They can be used with revenue attribution. In the first-touch attribution model, credit is fully provided to the initial touchpoint. In the last-touch type though, revenue is given to the final touchpoint in a buyer or customer's journey.

Multi-Touch Attribution

Understanding that there can be various touchpoints in the journeys of customers that can result in conversions, the multi-touch attribution model has been formed. It can work along with revenue attribution.

Rule-Based Attribution

As part of the rule-based attribution model, pre-set formulae are used. Depending on each formula, touchpoints can be determined. Considering the same, it can be utilized with revenue attribution.

Why is the Attribution of Revenue Important for a Business?

For a business, it is important to attribute revenue in order to find new avenues for growth. It can use the accessible insights to enhance buying decisions as well as optimize its spending. During the commencement of the growth curve, attributing revenue can facilitate the templatization of plans for marketing and action.

Not limited to this, this model is vital for businesses for additional reasons too.

Detecting Touchpoints and Creating Strategies

Companies require creating impactful strategies to acquire new customers. For this, identifying the touchpoints leading to conversions is vital. Revenue attribution assumes enough significance in this regard. It can assist in detecting these touchpoints individually for customers.

• In accordance with the same, spending can be planned.

• Moreover, the model can be useful in limiting assumptions for campaign failures/successes that are premature.

Comprehension of the Customer Journey

By attributing revenue, an organization can develop a fine understanding of the journeys of its customers. It is to note that business-to-business sales cycles can usually run from 6 to 9 months. Though analytical tools can give insights into the same, the other approach can offer in-depth information. Besides, it is crucial to be aware of the complete journeys of buyers to ensure profitable decisions.

Fostering an Understanding of Conversions

The process of attribution is functional for understanding the sources of leads or how conversions take place. While CRMs can largely offer a lead's original source, revenue attribution can ensure deeper insights. It is beneficial for the tracking of previous conversations to know how conversions occur.

• This approach lets a business align the functioning of marketing and sales teams.

• Through this, marketers can enhance the quality of leads.

• It can help them comprehend the intent of customers.

• Hence, it can eventually enable improved targeting.

Discovering High-Value Buyers

Through the use of revenue attribution, organizations can detect segments that yield the maximum revenue or high-value buyers. They can customize their marketing/sales practices by perceiving the characteristics of such buyers or customers in every segment. Further, they can attract as well as retain more such customers for better revenue.

Improving Forecasting/Planning

Businesses can rely on marketing or revenue attribution for better forecasting. It is facilitated by understanding the process of making purchasing decisions. However, keep in mind that building this understanding for planning and forecasting can be time-intensive. Nevertheless, it is effective for introducing accuracy in forecasting.

Thus, the eventual application of this model is crucial for organizations. The benefits of marketing attribution can then be reaped.

How to Start with Revenue Attribution?

Marketers can start with revenue attribution by initially setting their objectives. They must keep in mind that the goals should be focused on revenue. Afterward, they should set up the model by individually tracking all visitors. This is accompanied by storing information via several sources on a platform. Afterward, the original or primary sources can be attributed to revenue.

Establish Revenue-Focused Objectives

To get started with revenue attribution, business objectives should be set. They should be revenue-focused. Given that the goals are oriented toward gains, further functioning can be planned in sync with it. Thus, marketers within an organization can collectively focus on the ultimate objective.

Set up the Model & Track Visitors

After identifying profit-oriented business goals, the revenue attribution model should be set up. The next step should involve visitor tracking. Note that visitors should be individually tracked to closely measure their movements. Tools such as GA4 or Google Analytics 4 leverage first-party information. They focus on users individually, especially the ones interacting with organizations.

• Take into account that while using these tools, a user ID will have to be implemented.

• The ID should comprise alphanumeric characters.

For tracking visitors as part of revenue attribution, tools for buyer journey analytics can also be preferred. Once the journey has been tracked, marketing and sales professionals in the organization can map crucial touchpoints of certain users, across several channels. Hence, the transition from a user to a customer can be understood better.

Collect & Store Information on a Platform

Going further with revenue attribution, businesses will have to collect the marketing source/lead/conversion information from different sources. The collected data can be stored on one platform. It is ideal to keep it on CRM software.

• This information can be accessible by marketers.

• It can give them a holistic picture of customers' journeys.

• While leads move further in the funnel, campaigns' impact can be throughout the stages of sales.

• Assuming that tools are in place, the source of marketing and data conversion can be smoothly passed to the CRM.

Attributing Revenue to the Primary Source

Moving forward with the implementation of revenue attribution, as leads turn into customers, the primary source should be attributed. Via some tools, revenue can be auto-matched with a marketing campaign, keyword, or channel. Through these, they can create reports displaying the accurate values for the revenue generated.

Tip: Prior to using, the revenue or marketing attribution model’s pros and cons should be looked at.

In Short,

The revenue attribution method is effective for organizations, especially when they engage in B2B operations. Since it can be used with several models, its implementation becomes easier. Remember that the sooner it is utilized, the faster it can enhance marketing strategies. Thus, it can facilitate high conversions, resulting in more revenue.