Channel Attribution Using Markov Chain model

Abstract

For every company it is crucial to know how the marketing channels performing towards the sales of a company. So, there is a need for a model to predict which channel is best performing and which is least performing. The multi-channel attribution helps to find which channels generate the more conversions and most value to the sales, they are very important to predict overall marketing ROI and helps to make key decisions based on analysis of the data. Multi-channel attribution is must for every business marketer to identify the growth. But most of them not able to understand how it works and cannot use it as it are difficult for them. The recent study shows that 59% of marketers didn’t have knowledge of channel attribution and admitted that a lack of understanding is the key reason why they haven't implemented an attribution model. Multi-channel attribution helps to track and find the marketing touch points which make the user to convert which leads to conversion/sales. Channel Attribution follows predefined rules that assign the attribution value to every touch point which contributes to the sales of company. There are many benefits like that it tracks each touch point across the entire conversion path. But there are different models which give us different results and also, they give credit to only one channel which leads to overconfidence. Markov Model is a probabilistic model which will assign value based on channel contribution and calculate for all channels so that marketer will know better influencer.