Last-Touch Attribution is an attribution model crediting the final touchpoint prior to conversion for a customer's purchase decision.
Breaking it down, last-touch attribution (LTA) is a marketing term in the digital landscape, referring to an attribution model that assigns 100% credit to the last touchpoint customer interacted with before making a purchase decision. This model implies that it was the last point of engagement that ultimately swayed consumer behavior toward conversion. The LTA adds simplicity to what can usually be complex to trace - the customer's journey.
Probably the best way to understand this concept is through an example. Let’s assume a potential customer sees a display ad for a product on a news site (touchpoint 1), later clicks on a promotional article on social media (touchpoint 2), and then receives a targeted email campaign (touchpoint 3). This customer, intrigued, reads the email and decides to buy the product directly from the email link. According to the last-touch attribution model, the email campaign (touchpoint 3) receives all the credit for the conversion even though other touchpoints were involved in the journey.
Understanding the consumer's last interaction before purchase helps businesses make decisions. LTA assists marketers to identify the channels or platforms that directly lead to conversions. It permits them to streamline their marketing strategies depending on which touchpoints seal the deal. LTA is less complicated and easier to implement than other models, owing to its simplistic approach.
By utilizing advanced data tracking tools and analytics, marketers can gain a better understanding of consumer behavior leading to refinement of last touch strategies. Leveraging marketing automation solutions can help to create personalized end-stage content that can better resonate with potential customers for improved LTA.
Several factors impact last-touch attribution including the customer's purchasing cycle length, the buying complexity, how engaging promotional content is, and the effectiveness of the final touchpoint. The choice of marketing channels and the frequency and timing of promotional activities also play a role
Last-Touch Attribution co-relates with several other ecommerce metrics. It can affect Customer Lifetime Value, as the final touchpoint can determine customer retention rate. LTA also directly influences Return on Ad Spend because it indicates where marketing funds should be invested for maximum returns. It reveals which campaigns are driving conversions, influencing the calculation of Cost Per Acquisition.