It is an exciting time for the ecommerce industry. Growing at the rate of 23% year-over-year, global ecommerce sales are expected to top $27 trillion in 2020 —those statistics are only for the retail sector – ecommerce has become one of the fastest growing industries in the world.
Shopping apps have started gaining more and more mobile real estate and most ecommerce apps are pursuing an aggressive cross-promotion marketing strategy to acquire new users and re-engage with the existing users. While practicing such a strategy, retail app owners and marketers need to take a few important factors into consideration. Some of these factors include precise targeting of users and geographies, creating smart user segments, engaging with customers at the right time and gaining access to reliable marketing attribution data. At the same time, monitoring and understanding in-app user behavior is also crucial.
Why do you need attribution?
As mobile commerce gets ready for another growth milestone, ecommerce app owners need to look at all untapped channels to optimise their business revenues. For that, it has become extremely important to adopt the right mobile marketing approach while promoting their apps.When you’re selling your products online, it is vital to know how to effectively market them using various channels. If tracking your conversions and improving your marketing strategy is important to you, marketing attribution becomes one of the most vital component of any campaign
While marketers are innovating with creative new ways of reaching their customers and then engaging them on a regular basis, when it comes to establishing which channel is working best for them, not many truly understand the significance of the same. Knowing how to attribute the right sources from where their customers are originating can help them optimize their marketing spend effectively.
Specifically, for ecommerce apps, it is important to define campaigns with rich in-app events that are directly linked with your performance goals. Depending on your goals, you can define your campaign to capture In-app events like Viewed Products, Adding to Wishlist, Add to Cart, Checkout etc. Tracking user behavior at a granular level allows marketers to use the same to make smart marketing decisions across channels.
Return on Ad-Spend
One of the most basic question that marketing professionals are asking today is – “Am I spending my marketing budget wisely?”
This is where Attribution analytics becomes so relevant. To make clear and informed decisions, you must be able to define the actual value of your online marketing efforts. Marketers often try to discover which online channels have had the maximum influence on your customers’ purchase decisions.
Having a properly attributed campaign that’s tied to in-app events can contribute heavily in making more informed decisions about which channels or partners to employ to attract users with high LTVs. This attribution can help identify those channels that lead to high download rates with low value users and those that lead to downloads from high value users.
Using specific parameters, lots of data-driven insights can be gained from the in-app events on e-commerce apps. For example, monitoring ‘add to cart’ & ‘brands’ can indicate the user segments who are loyal to certain brands.
Similarly, scrutinizing ‘Add to Cart’ & ‘Payment Completed’ events, can highlight the unsuccessful transactions, where the users did not complete the payment process. This is a very crucial aspect as the users who have reached the payment screen, are the closest to converting to a paying customer. Such user segmentation can help curate the right sort of messaging at the right time for customers.
If you’re investing your funds to market your business, then understanding the results from such efforts becomes imperative. Whichever channel you are using for marketing, you’re expecting each of those efforts to produce some sort of ROI. By adding attribution analytics to your ecommerce app, you’ll know exactly which marketing channels or partners are worth your investment, and which are probably wasted ad spend. When properly implemented, marketing attribution can be used to value conversions, determine the most influential partners and prioritize use of different marketing channels.