Carlos Molina, CEO of Tidart, has published an article in the Madrid Retail Congress blog. The key event in the retail sector will take place between 27 and 28 November. Carlos, who is also Managing Partner of Kimia Group, will give a talk on the same subject.
What about you? Do you know what the incremental value of your conversions is?
In recent years, there has been a lot of talk about attribution models in the eCommerce sector. In fact, some retailers have implemented them with more or less success: Last Click, First Click, Decay and even Data Driven. It’s about time everyone started to value the incrementality of each of their conversions.
Do you know the real value attributed to you by the channels in which you are investing? Do you control the attributions given by Google or Facebook to each of your conversions? Probably not, but you should start thinking about why and, above all, take it into account now.
According to WordStream: «Companies that improve their conversion ratios from the previous year test, on average, 50% more tests and 47% use more methods to improve their conversions. Using test methods such as incrementality can increase your conversion ratio by up to 300%.
Measuring the incrementality of your conversions basically consists of finding out if your online campaign has managed to get the user to convert or if, on the contrary, that user would have converted equally without it. In these cases, remarketing campaigns are the ones that generate the most doubts about this incrementality.
In order to measure this incrementality, the audience is divided into two homogeneous groups. One is called «test» and the other «control». The first is exposed to an advertisement and the second is not. So we can observe the conversion rate of both and, once this is done, measure their incremental conversions. In other words, we will be able to accurately measure both the cause and effect of your ads. For those more familiar with incrementality, performance attributes such as iCPA or iROAS will be familiar.
In our blog, we recently talked about 3 compelling reasons to invest in Facebook Conversion Lift. Incremental studies like this can have too much impact on your digital marketing efforts to relegate them to the background. Now is the time to delve deeper into them, to understand them and elevate the optimization of your conversions. If you want to check that your campaign is working, the best way to do it is through a study of incrementality. What are you waiting for?
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This article’s written by Carlos Molina and was originally published in Spanish on the Madrid Retail Congress blog.
