Customer Connection Shifts and Digital Attribution Models

Posted on Dec 20, 2025 in Business Management and Marketing

Shifts Toward the Connected Customer

The modern market is defined by fundamental shifts in how businesses connect with their audience:

  • Exclusive to Inclusive

    Focus on innovation and diversity, mass markets, and social media as a redefinition of how people interact.

  • Vertical to Horizontal

    Emphasizing open innovation, ecosystem business models, and branding based on shared value.

  • Individual to Social

    Most personal purchase decisions are now social decisions, leading to a lack of control over marketing communication and a high impact of community-generated content.

Marketing Attribution Modeling

Attribution modeling is the process used by marketers to assess the value and Return on Investment (ROI) of the channels connecting them to potential customers. It serves three primary functions:

  1. A method to determine the value of different channels on marketing efforts.
  2. It allows mapping which channels provide the most benefit to a marketing campaign.
  3. It is the way marketers assess the value or ROI of channels that connect them to potential customers.

Goals, Measurement, and Use

  • Goal: To map the effects and value of a campaign’s components.
  • Measurement:
    • Within a Channel: E.g., delivery rate to lead generation.
    • Cross-Channel: Looks at the interaction between people and their exposure and/or interactions with each element of the digital mix.
  • Use: Channel impact measurement and budget planning.

Types of Attribution Models

Single-source attribution models assign all credit to one touchpoint, while multi-touch models distribute credit across the customer journey.

First Touch Attribution

Single-source attribution models assign all the credit to one touchpoint, usually the first touch or last touch. In First Touch, 100% of the credit goes to the initial interaction.

Last Touch Attribution

  • 100% of the credit goes to the marketing interaction that drove the conversion.
  • Provides insight into campaigns that have the highest conversion rate, but loses sight of any influences leading up to the conversion.

Linear Attribution (Multi-Touch)

  • The first step towards multi-touch attribution.
  • Assigns credit evenly to every marketing touch throughout the customer journey.
  • Example: If there are 10 touches, each will receive 10% of the credit. When there are 5 campaigns, each will receive 20%.

Time Decay Attribution

  • Assigns the most credit to the interaction that resulted in a conversion.
  • Touches leading up to the conversion event receive less value the further back they are from the conversion.

Position-Based Attribution

  • Combines features of the linear and time decay models.
  • Position-based models typically assign 40% of the credit to the first touch and 40% to the last touch, with the remaining 20% being split evenly among every touch in between.

Data-Driven Model

This advanced model allows marketers to input end goals and then weights each channel based on its effectiveness in accomplishing those specific goals.

Customer Relationship Management (CRM) Strategy

  • Goal: Bonding with your customers to ensure long-term retention.
  • Proactive Strategy: Controlling a positive situation.

Core Principles of CRM Strategy

  1. Frequency: How often do you contact your customers?
  2. Timeliness: Are you talking to the customer at the right time? How do you determine this optimal time?
  3. Accuracy: Is your customer data accurate?
  4. Relevancy: Does your message truly resonate with the customer?
  5. Personalization: If your customer has shown interest in certain areas or displays specific behaviors, are you responding appropriately?
  6. Value: Are you offering true value? What is the customer getting from your communications that they cannot get elsewhere?

Defining Digital Strategy

Digital strategy is the process by which a firm employs, either partially or exclusively, digital tools, techniques, and tactics to create value for customers.