What’s the best way to attribute pipeline and revenue across different channels?

Attributing pipeline and revenue across different channels can be tricky, but the most effective approach is to use both incrementality testing and Marketing Mix Modeling (MMM).

Incrementality Testing:

This method helps you understand the true impact of each channel by comparing groups that were exposed to the campaign with those that weren’t. You can run A/B tests or use controlled experiments to isolate the effect of a specific marketing channel on pipeline and revenue.

• Why it works: It helps prove if a channel is genuinely driving incremental revenue or if it’s just shifting existing demand (e.g., overlapping with another channel).

• How to implement: Select test and control groups, run your campaigns, and measure the difference in outcomes like sales or conversions between the groups. This will show you the incremental value that each channel adds.

Marketing Mix Modeling (MMM):

MMM uses historical data to assess the performance of all your channels and understand how they contribute to business outcomes. It factors in various external variables like seasonality, market conditions, and budget changes, which gives you a clearer picture of the overall impact.

• Why it works: MMM allows you to assess how each channel contributes to both short-term and long-term goals, helping you make more informed decisions about resource allocation.

• How to implement: MMM requires data from multiple sources (e.g., ad spend, web traffic, sales data) over time. By analyzing this data, MMM can estimate the contribution of each channel and give you the insights you need for optimal budget allocation.

When used together, incrementality testing and MMM can provide a well-rounded view of how your channels are driving pipeline and revenue. While incrementality testing gives you more granular insights, MMM helps you see the bigger picture and optimize your overall marketing strategy.