For startups, return on investment from various advertising platforms is probably the most important metric you to pay attention to (I’m sure you check it at least weekly if not daily). However, aiming to do data attribution when you are an early stage startup is not always the best idea. Here’s why!
Doing data attribution too early can lead you to wrong conclusions
To do data attribution you need at least 1000 conversions/month. Some would say you need at least 10.000. The exact number may differ from startup to startup. But the point is if you don’t have enough data it’s gonna be tricky to make assumptions and decide which channels should be put on hold and which should be focused on.
Tip: think twice before ceasing some marketing campaigns.
Data attribution requires an entire tool stack
Online marketing and tracking become more and more complex every day and no matter how experienced a marketer is, free tools are simply not enough. To do attribute results you need an entire stack of tools. And tools are expensive.
Tip: budget this cost accordingly.
Data attribution needs an attribution champion
The value of attribution comes from looking at your marketing efforts integrated. So you’ll need someone with a lot of experience in this area to make sure you’re making the right decisions as they will impact your entire business.
Tip: assign someone who understands the business at each level to call the decisions.
Recommendations
- Measure the number of conversions and make sure you have enough data to do the attribution;
- Budget a significant investment in tools;
- Make sure you assign the right person to read the data and call the decisions.
As usual, I’m happy to hear your thoughts on this matter, so make sure to leave a comment below and also spread the knowledge by sharing this article with fellow entrepreneurs.