Attribution helps SaaS companies identify which sales and marketing efforts result in a conversion. Doing so allows marketing, sales, lead gen, and other teams to identify the actions that drive conversion and revenue.
Additionally, with the help of attribution, SaaS teams can optimize budget allocation for various channels and campaigns to improve the conversion rate.
In this article, we’ll discuss the following
Last Click Attribution (LCA) model credits 100% of a conversion to the last touchpoint a buyer interacts with for a conversion event in the buyer’s journey.
Here’s an example to help you understand how LCA works.
Let’s say a CMO is looking for attribution software to help them tie their marketing team's efforts to conversions and revenue generated.
During market research, they come across a LinkedIn advert for Factors.ai and land on the features page and get insights into how the application can provide a solution to their needs.
Later that week the CMO comes across a blog talking about why CMOs should care about B2B Marketing Attribution. Upon reading this article, they finally decide to sign up for a demo.
Here the last touchpoint the CMO interacted with is the blog. So the LCA model will give full credit to the blog for the CMO’s conversion (demo sign up).
First Click is another simple attribution model that is similar to Last Click. Both of these are single-click attribution models, they attribute conversion to a single touchpoint.
The key difference between the two models is that Last-Click attributes a conversion to the final touchpoint. Whereas First-Click gives credit to the first touchpoint that led to a conversion.
We will explain how First Click Attribution (FCA) works by using the same CMO’s demo sign-up example.
The differences between the two models are that
Last Click Attribution is a cost-effective model that SaaS companies can use to identify and optimize various campaigns and channels driving conversions. LCA is available for free on Google Analytics.
LCA provides an intuitive framework to make sense of the nonlinear and long SaaS sales cycle with quick insight into the final touch-points before conversions.
Last Click Attribution can be used flexibly with any conversion event in the sales funnel, like
The simplicity of the model is what makes Last Click Attribution so attractive, but this simplicity comes at a cost.
The model has some limitations that can impact its accuracy and functionality in certain situations. Here are some of its limitations:
As the average timeline of the B2B customer journey is increasing, it’s key for marketers nowadays to understand the various factors influencing a prospect's decision.
B2B SaaS companies with long business cycles need to ensure that their efforts are aligned and are contributing to the end goal of converting prospects into paying customers. In this case, the LCA model will give you a skewed perception of the effectiveness of the marketing strategy.
However, these limitations . In the above case, LCA should be used along with other types of attribution models to cover for its shortcomings.
Last Click Attribution is still used in many B2B SaaS companies where the sales cycle is shorter, and the decision-making process is less complex.
In Factors, you can easily create intuitive Last Click Attribution reports. Additionally the tool presents key metrics such as spend and CPC to help marketers improve budget allocation towards campaigns that work.
The Cost Per Conversion metric when used along with LCA gives insights into the cost-efficiency of the employed strategy. Marketing teams can use this information to optimize budget allocation for their channels and campaigns to further improve conversions and ROI.
While there are several types of attribution models, the six most common ones apart from LCA are:
The decision depends on the specific needs and goals of your business. Last Click Attribution is a simple model, but it is not the best fit for every company. Consider the limitations of LCA and explore other attribution models and choose the one that aligns with your needs.
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