“It’s really hard to understand what sourced, what brought people to our product, what we should do more of and less of,” admitted a highly-accomplished 3X CMO from a billion-dollar SaaS company. If this CMO, with a ginormous tech stack and dedicated data analysts, can’t nail attribution, who can? As we enter 2025, perhaps it’s time to reimagine measurement and KPIs.
Multi-Touch Attribution Is the False Prophet (or Profit) of Marketing
Multi-touch attribution starts with a solid premise - that B2B purchase journeys are rarely linear or single-stepped. Instead, they meander. They take time. Like 6 to 18 months. Time for lots of folks to weigh in. According to Forrester’s latest research, these journeys involve, on average, 13 internal roles and 9 outside influencers (analysts, friends, rating sites, etc.).
Let’s just focus on the 13 internal roles. Most of these folks will do their own homework. For simplicity’s sake, let’s assume each visits five web pages. That’s 65 touches. Which of those mattered in the final decision? Was it the PR-driven story in a trade magazine or the carefully cultivated analyst’s rave? Or the buyer’s guide the content team crafted and the SEO team optimized? Arguably, all of them, since any one of them had the potential to derail the decision.
Attribution Efforts Tend to Over-Simplify Purchase Journeys
Because every CMO needs to show that marketing is having an impact, many deploy multi-touch attribution. Noted a SaaS CMO, “We use the data that we have to convince leadership to get on board, but I don’t always trust the data because we tend to overemphasize first-touch.” In other words, the CMO offers the appearance of cause and effect, knowing that it will only tell part of the story.
Attribution Efforts Don’t Often Help with Spending Decisions
Marketers, like other departments especially at SaaS companies, aspire to be agile. They want to demonstrate that they can adjust spending to changing market conditions with agility. But this isn't easy. As one SaaS CMO shared, “It’s hard for us to be agile when it comes to marketing decision-making since there’s a lag time between action and result.”
So, What’s a Data-Driven Marketer to Do?
Stop promising direct and short-term cause and effect from specific marketing activities. Sure, that’s what investors and the C-suite want to hear, but it’s a trap without an escape hatch. Stop separating budgets, people, and programs into “performance marketing” or “demand generation” and “everything else.” The implication is that everything else is not performing!
Instead, reimagine your metrics dashboard and commitments. Make sure you are monitoring brand health (awareness, reputation), customer satisfaction (rating, recommendations, referrals, retention), and brand velocity (opportunities, win rate, deal size). Measure trends rather than absolutes. Look at campaign performance, not channel performance.
How will your metrics change in 2025?
Written by Drew Neisser