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We all know that marketing attribution is incredibly important for success. But, how does it work?

Incrementality is expressed as a percentage and it provides insight on the performance of marketing activities. This is done through a KPI, which is a metric that marketers use to evaluate the effectiveness of their different marketing activities. Being able to compare the profit from paid marketing with profit from organic marketing helps marketers optimize their efforts. Incrementality is the added value that a traffic source has brought. It’s often expressed as a percentage to give marketers insights into the performance of different marketing strategies. For instance, it helps marketers compare the performance of paid and organic campaigns. Attribution and incrementality are frantically linked but different concepts.                                                                                                                                          


When measuring the effectiveness of traffic sources, it’s important to consider the incremental value they provide in terms of customer journey. For example, if a customer would have completed 40% of their journey without this traffic source, then the corresponding incremental value would be 60%.


This is a tough one. You have a customer who was about to buy something, but they found a voucher code somewhere else. They then open another tab in their browser, do a Google search for your company’s name and discount code, and find one. The customer enters the voucher code they found and completes their order. One example of this debate is when a customer places products in their cart and starts to check-out but then they see a field for entering a voucher code. They may be more inclined to find an online discount code instead of checking out. To find a voucher code, they will open a new tab in their browser and search “brand” + coupon code. They may find a voucher code and use the code to finalize their order.


Here’s the deal: attribution is the process of giving credit to various touchpoints in a customer journey. Imagine attribution as a pie. The size of the pie depends on the amount of data you have. The bigger the pie, the more credit is given to any one touchpoint in the customer journey. 


In today’s marketing landscape, it can be hard to distinguish between which touchpoints are most valuable. Once you have attribution and incrementality insights, take the next step by turning them into actions. The second step in the process is to determine the value of a touchpoint. The answer then becomes clear: how valuable a touchpoint is depends on its incrementality. Based on this knowledge, it’s time to take marketing actions.