There’s a lot of talk in the industry right now about attribution modelling and that scares the daylights out of a lot of people because it’s super-complicated. Well, your friends at Fuel are here to help shine a light on the ins and outs of attribution modelling and all of the considerations you should be making.
What Is Attribution Modelling?
Attribution modeling is where a hotel creates one or more rules that help calculate the credit for bookings or other conversions that should be assigned to various customer interactions throughout the sales funnel.
Why should hotels use an attribution model?
Attribution modelling creates an apples-to-apples comparison for your marketing efforts and allows hotel marketers to make smart decisions about where they should invest more and where they should pull-back.
Marketing has become significantly more complicated over the years and requires more sophisticated tracking and analysis to understand the impact that your marketing dollars are having on your hotel’s business.
Factors to Consider:
- Source of the data
- Type of interaction
- Length of cookie
- Time between interaction and conversion
- Where the interaction was in the funnel
- Was it new or repeat business
- Lifetime value of the customer
- Consumers are using multiple devices
- Are you including the management cost in your ROI/ROAS?
- What type of attribution model your vendor is using
Different Types of Attribution Modeling
Let’s discuss a specific scenario:
A potential guest finds your hotel website by clicking one of your paid search ads in Google AdWords. The consumer then returns two weeks later by clicking over from a Facebook organic post that has a campaign ID. That same day, they comes back a third time via one of your guest history email special offer, and a few hours later, returns again by typing your url into a browser and making a booking that was worth $1,000.
Last Click – the last click or source of traffic that occurred prior to the booking—in this case, the Direct channel—would receive 100% of the credit for the sale.