There’s a lot of discussion about attribution and its importance for e-commerce businesses.
Attribution enables you to track customer interactions across various channels, helping you determine which ones drive sales. It optimizes ad spending by revealing the most effective campaigns, enhances customer experience with tailored marketing strategies, and reduces cart abandonment by identifying drop-off points in the purchasing process.
But how do you choose the right attribution model for your e-commerce business? Today, we’ll discuss first vs. last click attribution and explore when to use each one.
What is First-Click Attribution?
First-click attribution is a marketing attribution model that assigns 100% of the credit for a conversion to the first interaction a customer has with a brand.
This means that whatever touchpoint (such as an ad, email, or social media post) the customer engages with first before making a purchase is recognized as the primary driver of that conversion.
Are the first-click and the first-touch the same attribution model?
The first-click and the first-touch attribution refer to the same concept. Both terms assign credit for a conversion to the very first interaction a customer has with a brand or campaign.
In both cases, the focus is on that initial touchpoint—whether it’s a click on an ad, an organic search, or another form of engagement that introduces the customer to the brand. This is useful for understanding which channels or campaigns effectively bring new customers into the funnel.
Example of first-click attribution
Pros of first-click attribution
Let’s explore the benefits of using the first-click attribution model. First-click attribution can be a smart choice for several key reasons:
Improves brand awareness tracking: First-click attribution highlights the channels that successfully introduce new customers to your brand, providing valuable insights into which marketing efforts are most effective for generating awareness.
Simplifies measurement: This model is straightforward and easy to implement, allowing marketers to quickly identify the initial touchpoint that led to a conversion without complex calculations or data analysis.
Focus on customer acquisition: First-click attribution prioritizes strategies aimed at attracting new customers, helping businesses allocate resources effectively to channels that drive initial interactions and support long-term growth.
Cons of first-click attribution
However, first-click attribution has some drawbacks. Here are the less favorable aspects of using first-click attribution:
Ignores subsequent interactions: First-click attribution does not account for the influence of later touchpoints in the customer journey, potentially undervaluing the role of channels that contribute to the conversion after the initial contact.
Limited insight into conversion path: By focusing solely on the first interaction, this model provides an incomplete picture of the overall customer journey, making it challenging to understand how different marketing efforts work together to drive conversions.
Potential for misallocation of resources: Relying on first-click attribution may lead to over-investment in channels that generate initial interest but do not necessarily drive final conversions, resulting in inefficient use of marketing budgets.
Consider using first-click attribution when brand awareness is your primary goal, as it helps identify effective channels for attracting new customers. It’s a straightforward model that provides quick insights into initial interactions and is especially useful for analyzing top-of-funnel marketing efforts like awareness campaigns and social media ads.
However, be careful, as it may overlook the influence of subsequent touchpoints and lead to misallocation of resources.
What is Last-Click Attribution?
Last click attribution is a marketing attribution model that assigns 100% of the credit for a conversion to the last interaction a customer has with a brand before making a purchase. This means that the final touchpoint, whether it’s an ad, email, or social media post, is recognized as the primary driver of that conversion.
Are the last-click and the last-touch the same attribution model?
Example of last-click attribution
Pros of last-click attribution
But what are the benefits of using last-click attribution? Let’s dive a little deeper:
Simplicity: Last-click attribution is easy to understand and implement, allowing marketers to quickly attribute conversions to the final touchpoint without complex analysis.
Focus on conversion: This model highlights the channels and campaigns that directly lead to sales, enabling marketers to optimize their strategies based on what successfully drives conversions.
Clear performance measurement: By attributing 100% of the credit to the last interaction, marketers can easily assess the effectiveness of specific ads or promotions in closing sales, facilitating better decision-making for future campaigns.
Cons of last-click attribution
While last-click attribution can be advantageous, it also comes with some considerations:
Limited attribution perspective: It provides a narrow view of the customer journey, potentially undervaluing the roles of other interactions that contribute to the conversion.
Risk of misallocation: Marketers may allocate budget and resources primarily to channels that generate last-click conversions, neglecting those that build brand awareness and interest earlier in the buying process.
Potential for short-term focus: Last-click attribution encourages a focus on immediate results rather than long-term strategies, which can hinder the development of comprehensive marketing campaigns that nurture customer relationships over time.
First-Click vs. Last-Click Attribution
The choice between first-click and last-click attribution in marketing depends on your campaign goals and how you want to understand customer interactions. Let’s break down the differences between the two:
First Click Attribution:
- First-click attribution assigns 100% of the credit for a conversion to the first interaction a customer has with your brand.
- This model emphasizes the role of awareness and initial engagement, making it useful for evaluating brand awareness campaigns.
- First-click attribution is beneficial when you want to understand which channels effectively introduce customers to your brand and drive interest.
Last Click Attribution:
- Last-click attribution gives full credit for a conversion to the final interaction before the purchase.
- This model highlights the touchpoints that directly lead to sales, making it valuable for assessing direct response campaigns.
- Last-click attribution is particularly useful for optimizing ads that aim for immediate conversions, especially in shorter sales cycles.
Which one to use depends on your campaign objectives:
- Use first-click attribution when your focus is on measuring brand awareness and understanding how new customers discover your products. This approach is ideal when you want insights into the effectiveness of your initial marketing efforts.
- Use last-click attribution when your goal is to optimize campaigns for immediate sales and understand which interactions close the deal. This model is best when you need to assess the final steps in the customer journey and allocate resources effectively to direct response strategies.
In summary, choose between first-click and last-click attribution based on your specific goals and what insights you need from your marketing data.
First Paid Click and Last Paid Click Attribution
First-paid-click attribution is an attribution model that assigns 100% of the credit for a conversion to the first paid interaction in a customer’s journey. This is similar to first-click attribution but focuses only on paid channels.
For example:
- If a customer first clicks on a Facebook ad (paid), later visits the site via an organic search, and finally clicks on a Google ad (paid) before making a purchase, first-paid-click attribution would assign all credit to the initial Facebook ad.
This model is helpful for understanding which paid channels or campaigns are most effective in initially attracting new customers, especially for businesses aiming to maximize the impact of their paid acquisition efforts.
A similar is with last-paid-click.
Last-paid-click attribution is an attribution model that gives full credit for a conversion to the last paid interaction before the purchase. Unlike last-click attribution, which considers any final interaction, last-paid-click specifically focuses on the last paid marketing effort, such as a paid ad on Google, Facebook, or another paid channel.
For example:
- If a customer first clicks on a Facebook ad, later visits the site via an organic search, and finally clicks on a Google ad before purchasing, the Google ad would receive 100% of the credit under last-paid-click attribution.
This model is often used to help marketers understand which paid channels or campaigns contribute most directly to conversions, optimizing budget allocations accordingly.
Choosing the Best Attribution Model
When it comes to choosing the best practices for your attribution model, we recommend using Le-Pixel.
Our Le-Attribution Model focuses on campaigns that help your business grow by highlighting clear marketing goals. It ensures your efforts are effective by emphasizing strategies that attract new customers and improve non-branded search results.
By moving beyond traditional methods, our model uncovers the real drivers of success in your marketing. It offers a straightforward way to evaluate your campaigns, enabling you to make informed decisions that enhance your overall marketing strategy.
Summing Up
To sum up, both first-click and last-click attribution models come with unique strengths and limitations. Selecting the right model for your e-commerce business should align with your specific goals.
First-click attribution can help you understand which channels are most effective in attracting new visitors, while last-click attribution shows what ultimately leads to conversions.
If your primary focus is on growth and gaining new customers, we recommend using Le-Pixel. This tool provides a deeper understanding of multichannel engagement, showing which marketing efforts best expand your customer base and drive sustainable results.
