As the name suggests, this model consists of attributing the credit of the purchase entirely to the marketing channel prior to that purchase. If we go back to our digital lemonade stand example, this would mean that we should assign all of the credit for the customer’s purchase to social media. It is not difficult to see that there’s something wrong with this logic. How about the other channels? If it is the case that the remaining channels should get no credit, could we safely discard them and retain all of our conversions? Probably not!
Why is it important ? It is pretty straightforward to see how attributing conversions to the right channels might boost sales and benefit the company. First of all, and most importantly, by optimizing your spending on the right channels, you will naturally improve the ROI, which is the ultimate goal of any marketing strategy. Second, actually knowing which channels drove the conversions simply improves your understanding of the customer journeys and enables you to enhance and adjust your marketing strategy accordingly.