Understanding the Marketing Funnel

Today more than ever, it’s crucial to understand the intricate relationship between marketing measurement and the marketing funnel. The funnel concept guides marketers from broad-reaching methods to targeted approaches like retargeting, moving potential customers from awareness to consideration and finally to purchase. Measuring marketing effectiveness is a complex task, requiring a mix of methodologies tailored to different audience segments and stages within the funnel.

Levels of the Marketing Funnel

The marketing funnel serves as a foundation for understanding the effectiveness of various advertising channels, from linear TV's broad reach at the top of the funnel to the narrow, focused efforts of retargeting campaigns aimed at users with demonstrated interest. Each level of the funnel serves a distinct purpose, with corresponding metrics and measurement strategies that align with the audience's stage in their journey.

Types of Measurement Tactics

Broadly, measurement tactics are categorized into two types: base and advanced attribution. Base attribution covers the direct data obtained from platforms, web analytics, mobile marketing platforms (MMPs), app attribution vendors, and direct mail reporting. Advanced attribution, on the other hand, delves deeper, using marketing mix modeling and various testing methodologies to parse out the impact of specific marketing efforts.

Advanced Measurement Methods

Geo-testing and split-testing are examples of advanced methods that gauge the performance of marketing actions by comparing results across different geographic regions or among varied audience samples. These methods provide a clearer picture of a campaign's effectiveness beyond the immediate data points.

The Power of Post-Purchase Surveys

One often overlooked tool that straddles the line between base and advanced attribution is the post-purchase survey. This method asks customers directly where they heard about a product or service, offering a straightforward and often insightful look into customer awareness. The simplicity of this technique can yield robust insights, allowing brands to attribute sales to marketing efforts effectively and pressure-test assumptions about acquisition sources.

Understanding Attribution Multipliers

Attribution multipliers are essentially coefficients used to give weight to different marketing channels based on their expected impact on consumer behavior. When calculating these multipliers, marketers analyze data from testing against baseline conversions to evaluate the additional lift that marketing efforts contribute.

Strategic Imperative for Modern Marketers

Understanding marketing measurement in the context of the funnel is a strategic imperative for modern marketers. By harnessing the power of both base and advanced attribution methods, and considering the nuances of attribution multipliers, businesses can better navigate the complexities of the digital landscape and drive meaningful growth.

Learn more in our Self Paced Advanced Attribution course.