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<Img 
img="/uploads/kaskadnaya_rassylka_74a2c5b36a.png"
alt="Cascade Campaigns"
/>

Communication with customers is one of the top-priority tasks for companies. Timely notifications of promotions, order delivery or changes in plans is a must-do for businesses to have loyal customers and receive positive feedback. There's no single communication channel that all customers would use, that's why companies usually have several ones: social media, SMS, email, messaging apps, push notifications and so on.
 
According to statistics, even three communication channels instead of one [**increase sales by 287%**](https://savemycent.com/omnichannel-statistics/). Therefore, it's beneficial for businesses to use cascade campaigns — a method that increases audience reach by sending messages with the same information to several channels. It gives businesses a chance to «reach out» to all customers and save the budget.
 
In this piece, you will learn about cascade campaigns: how they work and why they are beneficial to companies.

## What are Cascade Campaigns

A **cascade campaign** is a method that involves the successive sending of identical messages to customers to different channels depending on their reaction. The next channel is activated if the previous one hasn't brought any results: the user hasn't opened the message or hasn't made a purchase. 
 
*Example. The first message is sent via push notifications. If the customer doesn't open it after a specified time, the next message is sent by email. If the message is still not opened, this customer receives a text message (SMS).*
 
Cascade campaigns can be implemented through the following channels: SMS, [**push notifications**](mobile-marketing-101-push-notifications), email, messaging apps, social media and so on. The first message is sent through the cheapest (or free) channel. 
 
If the customer opens the message (or places an order) in some channel, it's not sent to other ones. Exclude such customers from the list for cascade campaigns so as not to irritate them with your messages and not to waste the company's resources. 
 
Cascade campaigns can be used for:

- trigger messages;
- promotional offers;
- service messages;
- notifications containing useful information.
 
However, cascade campaigns are not always necessary. It's reasonable to start them only if you know for sure that your customers use different communication channels. It's also important to take their age into account. For example, you can use [**messaging apps**](messenger-marketing) if your audience is quite young. The main users of WhatsApp, for instance, are [**25-34-year-olds**](https://www.thinkimpact.com/whatsapp-statistics). If your customers are significantly older, it's better to choose some other channel.

## Advantages of cascade campaigns

### Increase in audience reach

Your message is more likely to reach the recipient. One of the channels will definitely bring the result. That's why your company should work with all the data that customers provide to you: phone numbers, email addresses and social media profiles. 
 
*Example. A message about discounts was sent to 3500 users on Facebook, only 1110 of them opened it. The company has phone numbers of these users, so the same message was sent to the remaining 2390 users on WhatsApp and Viber. 1685 users opened the message there. Then, the same message was sent to the remaining 705 customers with the help of SMS, 615 people read it. Almost 98% of users were reached.*
 
### Customer loyalty

You will show your company in a favourable light if you choose a communication channel that your customers like the most. Let's imagine that there's some user who rarely opens their email box and your company uses only an email channel. It's inconvenient for your customer, there's a risk that the information won't reach them in time. If you send this user a notification to a channel that they use the most (for example, Telegram), their loyalty will definitely increase.
 
### Saving budget 

The first message could've been sent through an SMS channel whose open rate can reach [**98%**](https://99firms.com/blog/sms-marketing-stats/#gref). However, this channel is not free and quite expensive compared to others. It will be quite pricey if you have a large customer database. That's why it's more reasonable to choose free or cheaper channels first. If you [**use an SMS channel**](sms-marketing), remember that you pay for all sent messages, not just for delivered ones. Your company definitely doesn't want to pay for sending messages to inactive numbers. On messaging apps and social media, the sender always knows whether the user has allowed texting to them and whether they read the messages. 
 
### Simplicity

Cascade campaigns only seem complicated. In reality, it's enough to set up a series of messages once, and it will work automatically further. This functionality is supported by [**Altcraft Platform**](/en). The service collects user data in a single profile and integrates with other communication channels. You only need to specify conditions and channels in a scenario.  

<Img 
img="/uploads/cascade_scenario_6b8763337d.png"
alt="Example of how to set up a cascade campaign in Altcraft Platform"
src="Example of how to set up a cascade campaign in Altcraft Platform"
/>

### Channel functionality

Each channel influences the user in its own way. Emails attract the user with their design and interactivity. Push notifications are simple and fast. Messaging apps allow you to send voice messages. If you select only one communication channel, you limit your company's possibilities to create more content and don't receive complete data on audience preferences. That's why it's important to use and test different channels.  

## How to Create a Cascade Campaign
 
**What do you need for a cascade campaign:**
 
1. Use analytics to select available and the most effective communication channels.
2. Specify the sequence of sending messages to these channels: which is the first, which are the next.
3. Think over the actions that will finish or continue the campaign. If the customer has read the messages or has purchased something, the same messages won't be sent to other channels. If there is no reaction within N hours (days), send the same message to the next channel.  
4. Set up a scenario in the selected system. 

<Note>
It's not necessary to change the channel immediately if the customer doesn't open your message right after it was sent. Especially if the company doesn't have much data about the customer. 
</Note>

*Example. The first channel that is used to inform customers about a new promotion of the online store is an email one. Three emails with different texts are sent: the first one with a general description, the second one is a reminder email and the third one contains a list of products for which the promotion is valid. Those customers who have left their phone numbers will receive messages on Viber. The final channel in this campaign is an SMS channel through which the users will receive two messages.*

If you send several messages containing the same information to one channel, slightly change the text, otherwise your customers can consider them to be spam. For example, in the first message, the marketplace simply informs the recipient about delivery to the pick-up point. Two days later, in the second message, the customer is notified about the period within which their order will be stored. These two messages are practically the same — they remind the customer to pick up the order.

## Examples of Cascade Campaigns

Cascade campaigns are suitable for marketplaces, retail stores, event organizers, clinics, beauty salons, fitness clubs and other organizations that collect customer data to send out information. Let's look at several examples.

### Abandoned cart

1. A push notification that reminds the customer about the products in the cart in two hours.
2. The next push notification is sent in six hours.
3. The customer receives an email reminder about the products in eight hours.
4. One more email that shows that the products in the customer's cart are still in stock.

<Img
img="/uploads/mango_email_reminder_8333d3abe5.png"
alt="Abandoned cart email"
/>

5. One more push notification with one product from the cart.
 
### Discount on some product 

1. Messages on Facebook to those customers who have agreed to receive them.
2. Push notifications for those users who have the company's mobile app installed.

<Img
img="/uploads/photo_2022_06_30_12_26_46_2_12cb60c6f1.jpg"
alt="Push notification"
/>

3. Messages on WhatsApp to the customers from the phone number database. 
4. Reminder emails with images of the products. 
5. Text messages (SMS) with information about the discount and its period. 
 
### Reminder about a webinar

1. An email that reminds the user that the webinar starts in 60 minutes. 
2. One more email reminder 10 minutes before the webinar. 
3. A message in the Telegram bot that the webinar starts in 10 minutes.
4. An email that announces the start of the broadcast. 
5. A message to the bot about the start of the webinar. 
6. A text message (SMS) that the webinar has just started in the first five minutes.
 
### Reminder about a specialist visit

1. An email containing the date and time of the appointment the day before. 
2. A message on WhatsApp the day before. 
3. A text message (SMS) two hours before.  

### Birthday promotion

1. An email with a gift (a discount) a week before the birthday.
2. A message on Facebook three days before the birthday.
3. An email on the customer's birthday. 
4. A message on Facebook on the customer's birthday
5. A text message (SMS) after the birthday that the bonuses are about to expire.

### Feedback

1. A push notification with a request to rate the purchased product in the app. 
2. One more push notification with the same request. 
3. An email with a request to rate the product. 

## Conclusion

Cascade campaigns involve sending messages to different communication channels successively to be 100% sure that the information is delivered to customers. The following channels are used for such campaigns: email, messaging apps, push notifications, SMS and so on. Cascade campaigns increase audience reach and customer loyalty, save the budget. Messages are first sent through free and cheap channels, and if the customer doesn't read them, the messages are sent through more expensive ones. 
 
Cascade campaigns are used to send trigger and service messages, inform customers about their orders and discounts, collect feedback. If you want to introduce cascade campaigns to your marketing, you should have enough customer data and access to several communication channels. Cascade campaigns are set up manually or with the help of marketing services in which scenarios are created.

In this piece, you will learn about cascade campaigns: how they work and why they are beneficial to companies. 

medium_kaskadnaya-rassylka.png

small_kaskadnaya-rassylka.png

thumbnail_kaskadnaya-rassylka.png

kaskadnaya-rassylka.png

Cascade campaigns give businesses a chance to «reach out» to all customers and save the budget.

Cascade Campaigns: What are They and How to Create Them

Everything You Need to Know About Cascade Campaigns

<Img
img="/uploads/SMS_marketing_4369f8b199.png"
alt="SMS Marketing: Advantages, Examples"
/>

Ever since sending the first SMS in 1992, the technology has grown globally and has become a marketing tool: [**five billion**](https://www.slicktext.com/blog/2018/11/44-mind-blowing-sms-marketing-and-texting-statistics/) people around the world send and receive text messages. Despite new promotion and communication channels, short text messages continue to serve its purpose. The open rate of short text messages reaches [**98%**](https://99firms.com/blog/sms-marketing-stats/#gref), when the average open rate of emails is only 20%. Such a result is a significant reason to introduce SMS into marketing. 
 
SMS marketing complements advertising campaigns, improves communication with customers: [**71% of users**](https://www.slicktext.com/blog/2018/11/44-mind-blowing-sms-marketing-and-texting-statistics/) say that they communicate effectively with businesses through an SMS channel. In this piece, you will learn about the advantages of SMS marketing, how to send SMS messages properly and see examples. 

## What is SMS Marketing 
 
SMS marketing is a promotion of a company's products or services with the help of short text messages using mobile phone operators' services.
 
**SMS campaigns build communication with customers:**

- Help to sell — show special offers, promotions and advertisements.
- Inform about the status of orders, changes in plans, remind about events.
- Engage — invite customers to participate in different events and share their opinion about the company.
 
An SMS campaign can either be a part of a marketing strategy or the only channel of communication with customers. Please note that SMS advertising shouldn't be intrusive lest you want the user to block the company number. It's more effective to combine text messages with other communication channels. 

## Advantages of SMS marketing
 
### Speed 

The user receives a text message from the company faster than any other communication channel works.  [**34% of people**](https://99firms.com/blog/sms-marketing-stats/#gref) read SMS in the first five minutes after receiving it. Email campaigns and push notifications are less effective because most people don't check their email boxes daily and usually turn off notifications. SMS won't go to spam like emails and won't disappear like a [**push notification**](mobile-marketing-101-push-notifications).
 
### Price

An SMS campaign is not expensive. Although there are alternative free tools (messaging apps), SMS remains an effective method of promotion. Reliability justifies the cost of this channel: you don't need the Internet to send a text message, so it's more likely that the recipient will receive the message quickly. Also, SMS is a common way of communication for people of different ages — not everyone uses email and [**messaging apps**](messenger-marketing) regularly. 
 
### Personalization

Use targeted short text messages for advertising campaigns — only a certain segment or specific users will receive your messages. Your customer will get an individual discount or confidential information about their order. Also, address recipients by their names. This approach is more effective than sending out impersonal text messages to all customers at once.

## How to Start an SMS Campaign in a Proper Way
 
### Comply with the legislation of the country

There are laws on advertising, according to which companies need to get subscribers' prior agreement to text messages and immediately exclude them from the list on demand. That's why it's better not to use other companies' lists of phone numbers. Sending out text messages to your database after receiving customers’ permission (preferably written) is a safe option for business. Also, you can buy phone numbers from third-parties only to find out that it's not your [**target audience**](creating-a-customer-profile).

### Make sure that your messages are easy to understand

A simple and clear text is the main rule of a good message. No one wants to read your message and try to guess what you mean. Your text messages should be short and reader-friendly. It doesn't mean that you can't be creative, just don't forget about simplicity. In the message, specify your offer and how and where to get a bonus: go to the website or to the offline store, make a call. 
 
<Note>
Make the sender's name recognizable. Here, try to be as simple as possible: an excessively creative name will make your audience think that the message is from scammers. Use a name your customers know well to send text messages. 
 </Note>

*Example. A subscriber receives a message from the mobile phone operator Verizon with information about their plan, the name of the operator is specified in the sender's field. On another day, this subscriber receives a message from a four-digit number that, on behalf of Verizon, asks them to click on the link and take a survey. The subscriber doesn't trust this message and doesn't follow the link.*

### Keep it brief

Your customers don't want to read long and complicated text messages. Be brief, stick to the topic, but always add a CTA so that your customer understands what to do next. 
 
### Don't send too many messages

If customers consider your texts intrusive, they're more likely to block your number. Don't send messages about all the promotions, all the company news and every new article in the corporate blog. Short text messages should contain only useful and urgent information. Take into account the customer's time zone: hardly anyone will be happy to receive a text message in the middle of the night. 
 
### Segment and personalize

Custom-tailored approach works. A text message in which the customer is addressed by name and offered personal discounts is more appealing than a message that is meant for everyone. Segment customers by activity and [**degree of loyalty**](customer-loyalty).
 
### Use interactive content

To keep communication with your customers, add links to the company's resources to your messages: websites with products, pages with discounts, quizzes, surveys and so on. 
 
### Don't forget about analytics

Keep track of the opening and purchase rate after sending text messages so as not to pay for messages to [**inactive customers**](how-to-reactivate-inactive-email-subscribers). Clean your database and exclude users who don't interact with your messages. Test different versions of texts and leave only effective ones. 
 
### Ask customers to confirm their numbers

Sometimes a person can specify an incorrect or inactive number. Then the company will be wasting money. Set up Opt-in — your customer will enter a code from SMS into a special field to confirm their number.

<Img
img="/uploads/sms_consent_58f5a7ccd3.png"
alt="Subscribe to SMS"
/>

### Automate the sending of short text messages

Let customers receive your text messages immediately after placing an order. Let them know that you have seen their order and will respond soon. Create an SMS welcome series for new or potential customers.

*Example. Jewelry brands have cross-promotions with other stores. Customers receive coupons for a jewelry gift together with their purchase receipts. The condition is to join the loyalty program and leave a number. A person leaves their agreement and becomes a potential customer who will automatically receive short text messages from the company.*
 
### Wish your customers happy holidays

This is a good way to remind the audience about your company and increase customer loyalty.

## Examples of SMS Campaigns

### Promotions and discounts 

Be sure to include details: a discount percentage and promotional period.

<Gallery>
<GalleryItem
original="/uploads/macy_s_sms_1eb86be677.png"
thumbnail="/uploads/macy_s_sms_1eb86be677.png"
/>
<GalleryItem
original="/uploads/pura_vida_sms_6ce0609c00.png"
thumbnail="/uploads/pura_vida_sms_6ce0609c00.png"
/>
</Gallery>

### Collecting feedback 

Ask your customers to leave feedback after they make a purchase or receive an order. A text message is a quicker way to [**ask your customer to leave feedback**](how-to-use-customer-feedback-to-increase-sales) than email.

<Img
img="/uploads/gamespot_sms_2_0752474091.png"
alt="SMS for feedback"
/>

### Notifications of order status

It's important for the customer to know that their order is being processed and will be delivered. If you specify the order number in your text message, and not in email, you do your customer a favor.

<Img
img="/uploads/book_maze_sms_2_c109de4f65.png"
alt="Order status SMS"
/>

### Reminders about a specialist visit 

It's a useful idea for beauty salons, clinics and educational companies. The customer receives a confirmation with appointment time and then a reminder. Now, the customer won't forget about it.

<Img
img="/uploads/dental_clinic_sms_2_de8113107c.png"
alt="SMS reminder"
/>

### Wishing happy holidays

Don't forget to wish your customers a happy birthday and so on. Customers get your attention, you receive their loyalty.

<Gallery>
<GalleryItem
original="/uploads/maud_s_sms_cdae355986.png"
thumbnail="/uploads/maud_s_sms_cdae355986.png"
/>
<GalleryItem
original="/uploads/round_table_pizza_sms_4a5bebe079.png"
thumbnail="/uploads/round_table_pizza_sms_4a5bebe079.png"
/>
</Gallery>

### Information about changes in plan 

Mobile operators and banks also use SMS messages to inform customers about changes in rates, account balance or new products.

<Img
img="/uploads/verizon_sms_2_dc87e2fd93.png"
alt="SMS from mobile operators"
/>

## Tools for SMS Campaigns
 
Companies use either a separate service for SMS campaigns or a direct integration with the provider's gateways of their marketing system. In the first case, it's usually necessary to upload the database with phone numbers to the service. In the second case, the customer's number is linked with other data in the profile. 
 
This functionality is supported by [**Altcraft Platform**](/en). Customer data is stored in a single profile and it makes it easier for you to personalize text messages, emails and push notifications.

The platform already has ready-made integrations with mobile phone operators and offers options of individual approach to each customer.

## Conclusion
 
SMS marketing is a quick way of promotion and communication with customers. Being a reliable channel of information delivery, text messages are not expensive. A message won't go to spam and will definitely reach your customer. With short text messages, you can advertise your products, inform customers about promotions, order statuses, changes in plans and tell other company news.
 
It's important to take into account the laws of the country. For example, there are laws according to which you need to receive the customer's agreement before sending out your messages. Also, it's important to check numbers using confirmation codes. Effective text messages are short and clear, always contain a call to action. Don't forget about personalization, don't send too many messages, remember about time zones (no one wants to be woken up in the middle of the night). 
 
SMS marketing is a tool that is used in combination with other marketing methods or separately. You can use special services or the functionality of all-in-one marketing platforms, like the Altcraft Platform, to send your messages.

In this piece, you will learn about the advantages of SMS marketing, how to send SMS messages properly and see examples. 

medium_SMS marketing.png

small_SMS marketing.png

thumbnail_SMS marketing.png

SMS marketing.png

The SMS open rate reaches 98%, when the email open rate is only 20%. This is a good reason to introduce SMS into marketing.

SMS Marketing: What is It and How to Run an SMS Campaign

SMS Marketing: Advantages, Examples

<Img
img="/uploads/A_Guide_to_Cohort_Analysis_Why_is_It_Important_for_Marketing_a0af821cf0.jpg"
alt="A Guide to Cohort Analysis"
/>

Immediate return marketing campaigns are a dream of marketers. However, they are possible for simple products that are available for one-click purchase. As for complex and expensive products, their promotional costs pay off longer. How to evaluate the effectiveness of such campaigns? First things first, consider the time factor and detail your customers according to it. If you are wondering how to do it, we are here to tell you about cohort analysis.

## What is cohort analysis

Cohort analysis is an analytical method that involves dividing customers into groups (cohorts) based on certain characteristics and tracking their behaviour within a defined time frame. This method allows one to watch user activity in real time.

A cohort is a group of people who share one or more characteristics:

- an action (purchase, registration, click) that they performed;
- a period within which it happened.

A time reference distinguishes a cohort from a segment, a broader and more general concept.

For example, 2012 and 2018 Harvard graduates are two different cohorts, but they all belong to the «Harvard graduates» segment.

By actions, cohorts are divided into two types:

- Engagement — application installation, first click, registration.
- Monetization — purchase, payment, etc.

The cohort method considers the following features for analysis:

- A shared action for a group of users: subscription, registration, purchase, etc.
- A period within which this action happened: a day, a week, a month, etc.
- A study interval during which the cohort is observed.
- A metric that affects the business: ROI, customer retention, conversion, LTV, etc.

Cohort studies help to understand how key metrics differ for different segments, to see more details on an advertising campaign and other marketing activities (rebranding, testing a new website, etc.).

## How to apply cohort analysis

Cohort study is not a universal method, it requires a sufficient number of users. It is advisable to have at least 1000 users in the database to conduct this analysis. This method is suitable for volume B2C and B2B businesses with a long sales cycle.

### Cohort analysis helps to evaluate:

- **Effectiveness of attraction channels**

Cohort analysis will show which channels bring you the most loyal users. Then the business will allocate a larger budget for effective channels and work with them more actively. A question may arise: Why is cohort analysis necessary if the company can estimate how many clients it has received immediately after the campaign? Well, it is not that simple.

*For example, 2000 users signed up for the service right after they saw Facebook ads. The marketer was happy because there was a result. However, 90% of users stopped logging into the service after a month. At the same time, we attracted users through newsletters. 1000 people came, and only 15% of them stopped using the service after a month. If we had analysed the result immediately after the campaign, we would have decided that Facebook is the most effective channel. But in fact, there was almost no target audience there.*

- **ROI**

For a long sales cycle, the return on investment in advertising is not a quick thing. When it comes to large B2B transactions, real estate, and electronic services that can transform the entire business, it is impossible to make a purchase decision immediately after the first advertisement. So it is necessary to be patient and check the results after a while.

*For example, user K first learned about [**Altcraft Platform**](/en) and visited the website back in January when we had our advertising campaign. It takes time to explore opportunities and make decisions in the company where user K works. Only 4 months later, the user requested a demo from the service team, and 5 months later, the companies signed the contract. If we had calculated the ROI for the month after the campaign, we would have decided that it was a failure. Cohort analysis showed that it was not the case.*

- **LTV tracking and prediction**

LTV (customer lifetime value) calculates the income from the customer for the entire period they use our products or services. This metric shows whether the costs of attracting new customers are justified. When we know how long the user stays with us and how much spends on us, we can calculate this data for similar cohorts.

- **Test results**

Cohort analysis will show how the conversion rate will change in the long term after updates for [**A/B tests**](/features/mvt). It may turn out that a successful element attracted more users but they are not quite target ones: accidentally clicked, signed up, but did not use the service.

- **User activity**

Cohort analysis will help you find out after what time the client stops actively using the product or leaves altogether. It is better to know such details because you can work on them with the user in advance.  

*For example, the analysis showed that 70% of users lose interest in the service after 3 months. In this case, the company needs to pay attention to this period: create a reactivation newsletter, offer a bonus, etc.*

## How to conduct cohort analysis

**1. Define the goal and the metric** associated with it that you will track during the analysis. Metrics are the basis for cohort analysis.

For example:

The goal is to determine the most successful sales channel for a mobile application. Let's consider conversion (registration) as a metric. It is important to consider how the Retention Rate changed in order to understand how many of the registered users remained in the application.

**2. Determine the cohorts that you will study.**

People who signed up for the service in June after advertising on Instagram, Facebook, Yandex and Google are 4 different cohorts.

**3. Analyse different cohorts for a selected time interval.**

Let's consider the result of all four cohorts for 3 months after the month of registration and estimate how many users remained active after registration during each of the months.

<Table>
| **Cohort** | **August** |**September** | **October** |
| ------ | ------ | ------ | ------ |
| Instagram | 50% | 35% | 10% |
| Facebook | 87% | 80% | 76% |
| Google | 46% | 32% | 20% |
| Yandex | 66% | 51% | 36% |
</Table>

Cohort analysis is performed in Google Sheets or Microsoft Excel. However, you will have to figure out how to create the formula for calculating this or that metric in the sheets yourself. In [**Google Analytics**](https://analytics.google.com/analytics/web/provision/#/provision), cohort study is automated but there is a limit for dividing users into cohorts: it is possible to track the first user action within a certain period.

<Img
img="/uploads/cohort_analisys_in_Google_Analytics_fa8d2ec982.png"
alt="Cohort analysis in Google Analytics"
src="Cohort analysis in Google Analytics"
/>

Marketing automation platforms can conduct cohort analysis in a more detailed and clear way. In the Altcraft Platform, cohort analysis is available for cohorts of users who have performed an action within a week or a month. You can view user activity in the report by:

- the number of unique clicks;
- the number of unique openings;
- the ratio of unique clicks to openings;
- the ratio of unique openings to sent messages;
- the number of unique clicks to sent messages.

The data is visualised as a graph and a table.

<Img
img="/uploads/cohort_analysis_in_Altcraft_Platform_96135ee4f1.png"
alt="Сohort analysis in Altcraft Platform"
src="Cohort analysis in Altcraft Platform"
/>

## Examples of cohort analysis

Let's analyse some examples of cohort analysis for different metrics.

### Testing the effectiveness of channels

The goal is to determine which channel is the most effective one in terms of attracting new subscribers for your newsletter. We will analyse 3 cohorts by channels of attraction: a pop-up window on the website, Facebook ads, VKontakte affiliate posts. Each cohort is calculated from March 15-30 — a period for the campaign. 3000 users subscribed to the newsletter from all channels. Most of the users (1600) subscribed after seeing Facebook ads. 5 months later, 782 of all subscribers remained active. Let's have a look at the table to analyse all unsubscriptions during this period.

**In the table, you can see the number of users as a percentage by month who continue to open emails.**

<Table>
| **Channel** | **Subscribers** |**April** | **May** | **June** | **July** | **August** |
| ------ | ------ | ------ | ------ |------ | ------ | ------ |
| Pop-up window on the website | 600 | 70% | 65% | 58% | 41% | 37% |
| Facebook ads | 1600 | 65% | 47% | 29% | 15% | 6% |
| VKontakte affiliate posts | 800 | 88% | 76% | 64% | 60% | 58% |
</Table>

Considering only the first results, we could conclude that Facebook advertising was the most effective in attracting subscribers. But it turned out that these users were not interested in the subscription or subscribed by accident. 5 months later, only 6% of these users still opened emails. VKontakte affiliate posts attracted the highest quality audience of all, 58% of subscribers from this channel continued to read the newsletter.

### Calculation of LTV

The goal is to determine the LTV of users who started to use a food delivery app in 2020. Let's consider 3 cohorts - customers who made their first order in January, February or March 2020. We need to analyse their behaviour within 6 months. Then we will calculate ARPU (average revenue per user) for each customer. Calculations are performed in rubles.

<Table>
| **Cohort/first order:** | **1st month** |**2nd mont** | **3d month** | **4th month** | **5th month** | **6th month** |
| ------ | ------ | ------ | ------ |------ | ------ | ------ |
| January 2020 | 3500 | 2500 | 4000 | 2600 | 1500 | 0 |
| February 2020 | 2800 | 3700 | 3200 | 2900 | 0 | 1500 |
| March 2020 | 4500 | 3500 | 1300| 0 | 0 | 0 |
</Table>

LTV is calculated for each cohort separately or for all users at once.

To calculate LTV, keep in mind the following rule: Lifetime is the period from the beginning of your partnership with the client up to its end.

LTV for a cohort is calculated in the simplest way: add up all the ARPU values over the Lifetime of this cohort. LTV for the January cohort — 14100, February — 12600, March — 9300.

Besides, when calculating LTV using cohort analysis, it is important to consider not only numbers but also the situation in which the campaign was held. The table shows that customers spent more money in March 2020. They started to make fewer orders after 4-5 months. On the one hand, we can assume that advertising campaigns in March were the most successful ones because even those people who had used the app before started to make more orders. On the other hand, there was a lockdown in many regions of Russia, so food delivery became a necessity for many people. Then we can explain the decline in activity by the last months with the same advertising campaigns. When the lockdown was lifted, users began to go shopping themselves again. It is not correct to use this data to forecast LTV for other periods because the situation may change.

**Conclusion: when calculating LTV, it is important to consider not only numbers but also the situation in which the campaign was held.**

### Testing

It is necessary to analyse the results obtained after testing the design of a new section of additional orders in the online store. There are two new designs A and B, and also the old one — Old. They form three cohorts. We are going to analyse CTR (click-through rate) of each of the designs within the period from June 5 to July 11. Next, we are going to analyse conversion from each design over the next 3 months.

<Table>
| **Cohort** | **Clicks** |**June** | **July** | **August** |
| ------ | ------ | ------ | ------ |------ |
| Design A | 150 | 20% | 25% | 15% | 
| Design B | 102 | 36% | 29% | 34% | 
| Design Old | 111 | 34% | 30% | 28% | 
</Table>

As a result, design A received more clicks in the first week. However, its conversion rates were lower than those of designs B and Old. Besides, new designs did not show a significant increase in conversion compared to the old one. So we conclude that the concept of both designs is not the most successful one.

## Conclusion

Cohort analysis is a tool that requires preparation. Marketers need to collect a lot of data and understand which metric to investigate now in order to improve business performance in the future. But the costs are worth the result — a deep and detailed understanding of the company's marketing, proper budget allocation, and effective [**data-driven strategies**](data-driven-marketing).

How to evaluate the effectiveness of such campaigns? Consider the time factor and detail your customers according to it.

large_A Guide to Cohort Analysis: Why is It Important for Marketing.jpg

medium_A Guide to Cohort Analysis: Why is It Important for Marketing.jpg

small_A Guide to Cohort Analysis: Why is It Important for Marketing.jpg

thumbnail_A Guide to Cohort Analysis: Why is It Important for Marketing.jpg

A Guide to Cohort Analysis: Why is It Important for Marketing.jpg

How to evaluate the effectiveness of complex  campaigns? Consider the time factor and detail your customers according to it. Cohort analysis will help you with this.

A Guide to Cohort Analysis: What is It and How to Conduct It

A Guide to Cohort Analysis: Why is It Important for Marketing

<Img 
img="/uploads/reaktivaciya_podpischikov_b47060c0d9.jpg"
alt="How to Reactivate Inactive Email Subscribers"
/>

About [**333 billion emails**](https://www.statista.com/statistics/456500/daily-number-of-e-mails-worldwide/) are sent every day worldwide, and by 2025 the number will grow to 376 billion. Email is not inferior to messengers and other communication channels. However, users do not read all emails: the average [**Open rate — 25%**](https://knowledgebase.constantcontact.com/articles/KnowledgeBase/5409-average-industry-rates?lang=en_US). A click-through rate, and consequently the number of purchases, is even lower. That's why it is vital to draw the attention of subscribers wisely. Not all customers who receive your newsletter are active users. Some people may simply lose interest in your content. When subscribers do not read the emails, the business loses money — the company wastes marketing budget on newsletters and worsens the [**reputation of its IP address**](how-to-inbox).

The situation is reversible if you carry out reactivation campaigns. In this article, you will learn about reactivation.

## What reactivation emails are and why they are important

<Note>
Reactivation, also known as re-engagement, is a strategy that involves sending out trigger emails to subscribers who have stopped responding to email newsletter: open emails, click the links or purchase products from the newsletter. 
</Note>

Reactivation newsletter revives subscribers who have been «sleeping» for several months. This newsletter does not include «dead» users — those who have subscribed to your newsletter but have never opened your emails.

Subscribers become «sleeping» if they have not been active, on average, between three to nine months. It is important to consider the frequency and interval of newsletters. If you send one email a month, then it is too early to consider your subscriber «sleeping» after three months. The subscriber may have missed the emails.

## Why reactivation emails are necessary

Reactivation of customers returns users to communication with the business, as well as:

- **Increases sales** — discounts, bonuses and other special offers in reactivation campaigns encourage a quick purchase.
- **Saves the budget on email marketing** — the cost of a newsletter depends on the number of addresses in the database, and reactivation deletes unnecessary ones from there.
- **Improves the reputation of the sender** — if many subscribers do not open emails from the same address, the provider considers the sender unreliable. Keeping only active subscribers means preserving the reputation of the address.

## Subscriber reactivation strategy

There are three ways to revive «sleeping» users:

- **Temporary ignoring** — exclude «sleeping» users from the main newsletter, leave a digest or send emails that worked well before the activity stopped. Look at the result: if the user returns, add them to the main newsletter. If the user remains inactive, delete them from the database.
- **The last chance** — send one reactivation email. If the user does not interact with it, delete them from the database.
- **Series of emails** — it is a sequence of emails that depends on the user's reaction. If the user does not respond to one email, send them another and so on.

## Steps to reactivate subscribers

### 1. Determine the causes

Why subscribers «fall asleep»:

- Subscribers are no longer interested in the content of your email newsletter.
- The content does not meet the expectation of subscribers.
- You send too many emails.
- The user changed their email address because of the loss of a previous one or job change (the subscription from a corporate address).
- Your emails are not adapted for mobile devices.
- The user subscribed because of the bonus, not to receive information from the company.

How to find out the reasons: conduct a survey and analyze previous newsletters sent to «sleeping» users.

### 2. Segment the audience

A click-through rate (CTR) of a segmented campaign is [**100% higher**](https://kinsta.com/blog/email-marketing-statistics/) than for campaigns without segmentation. Reactivation is no exception. The types of «sleeping» users differ from each other and require a different approach.

<Table>
| **Type** | **How to reactivate** | **What to offer** |
| ------ | ------ | ------ |
| Do not open emails for N months | Interest the user in a topic, an attractive offer | Survey, discount, secret content |
| Open emails, but do not click the links for several months | Show the value of your content, interest the user in profitable offers | Relevant content, discounts and gifts |
| Open emails, click the links, but do not make purchases for N months | Show the possibility of lost profits | Discount with a limited validity period |
</Table>

Exclude «dead» subscribers from your newsletter immediately. How to delete inactive subscribers: mark those who have never opened your emails. Probable reason — invalid email address or subscription for bonus. «Invalid» means an incorrect or outdated email address, or a spam trap. However, a valid email address may also be «dead» because the user receives emails, but does not open them.

### 3. Set reactivation limits

You cannot remind the customer about yourself forever — it is not profitable and [**your emails will go to spam**](how-to-send-millions-of-emails-and-avoid-spam-filters). However, sending one email is not the most effective way. It is better to send a series of three to five emails.

### 4. Offers for return

- **Offer fewer emails** — update the subscription settings. You can also send a bonus as a thank you for the fact that the user stays with you.

- **Be sentimental.** Describe in your email how you miss the subscriber:

<Img 
img="/uploads/duolingo_sentimentak_email_2550e0d9a0.png"
alt="Sentimental reactivation email"
src="Sentimental reactivation email"
/>

- **Offer an alternative channel to get information.** For example, social networks instead of an email newsletter.

- **Make a unique and time-limited offer**: discount, free consultation, delivery, new product.

<Img 
img="/uploads/specialnoe_predlozhenie_3cfbfacf31.png"
alt="Reactivation email with a unique offer"
src="Reactivation email with a unique offer"
/>

- **Make a joke to make your subscriber laugh** — humour distinguishes your emails from others in the inbox.

<Img 
img="/uploads/semruch_funny_email_6a1272d351.png"
alt="Funny reactivation email"
/>

- **Intrigue your subscriber.** For example, you can use an intriguing subject line, or share something standard or unusual. Use content that you wouldn’t normally use in your niche.

- **Apologize to subscribers.** If you send too many emails and, especially, advertisements, show your subscribers that it is your fault and you will improve the situation. Such a move will increase the loyalty of the audience. There was a technical failure on your website or there were errors in previous emails — apologize for them, too. Even if the subscriber did not notice the error, curiosity may force them to open your email and find out what happened.

- [**Conduct a survey**](/features/forms-and-surveys) — this is a way of reactivation and a tool for collecting analytics on users. It is not necessary to ask only about the quality of the content or ask to rate your company. For example, you can ask your subscribers to tell an interesting story about your service.

<Img 
img="/uploads/shopify_reactivation_email_example_463bee5f8c.png"
alt="Survey Email"
/>

- **Say goodbye radically** — give your subscriber an ultimatum, according to which you will delete them from your mailing list if they do not open this email. *Example of the subject of such an email: «Last warning! 3, 2, 1... before you will be deleted from the database».*

- **If your newsletter includes only advertising, suggest subscribers to change the type of content.** For example, they can receive only new articles from the blog and no advertising.

**Which offer to choose**

One email is unlikely to bring results, so send a series of emails. Each email should correlate with the previous one and express reaction to the user's activity. For example, the user responds to your offer in the first reactivation email and agrees to receive fewer emails. In this case, thank the subscriber and send them a bonus. If the user does not react, send them another email from the series with a new offer.

Example of a series:

1.	Ask questions: «Why don't you answer? Is something wrong?»
2.	Reduce the number of emails: «No more emails, but less... it's up to you».
3.	Special offer: «Come back and get a 50% discount on everything».
4.	Say goodbye: «Goodbye! This is our last email».

### 5. Create email layout design correctly

**Email subject and email preheader** are the most important things in the email newsletter. [**48% of users open emails**](https://optinmonster.com/101-email-subject-lines-your-subscribers-cant-resist) only because of the subject. At the same time 69% of recipients move emails to spam if they do not like the subject. Be creative and as brief as possible, then there are more chances of successful reactivation.

Let's take a look at a few examples:

- Manicube: “*Don’t Open This Email*”
- TicTail: “Boom shakalak! Let’s get started.”
- Digital Marketer: “Steal these email templates…”
- Envira: “I’m deleting your Envira account”
- Vivino: “We are not gonna Give Up on You!”

**Design and text of the email** also matter and determine whether the user will finish reading your offer. Logical structure with semantic blocks, brevity (few people like long reads), neat layout — consider all the details.

**Personalization of newsletters.** Show the subscriber that they are important to you — use their name, create a [**personal promo code**](how-to-use-promo-codes-for-business) and/or a list of products based on previous purchases.

**Add a CTA button** with a simple action. If the user opens your email after months of being inactive, it shows that reactivation is working. However, the purpose of the business is to sell, so do not forget about a CTA button to motivate users to buy.

### 6. Test the options

Reactivation emails are a non-standard newsletter, so look for what is effective here. Do not send the same emails to everyone. Divide «sleeping» subscribers into groups within segments (500-5000 contacts) and test different options of email subjects, design, text, CTA buttons.

## Common Mistakes in Reactivation Emails

- **Identical emails.** Just sending ten identical emails to the user is a failed strategy that resembles ordinary spam.

- **Too many reminders of yourself.** It is more likely to irritate the user rather than lead to their return. Do not exceed the limit of three to five reactivation emails and delete users who have not returned.

- **Newsletter without [**segmentation**](how-to-build-an-email-database).** Do not send identical offers to everyone. For example, why offer the user to go to a social network if they click the links in your emails but do not buy? The user has problems with the product rather than with the communication channel. Offer a discount or special purchase conditions.

- **Sending out your newsletter to «dead» subscribers.** Accept it — those users who have never opened your emails are unlikely to revive. You will simply waste your resources and budget and ruin the reputation of your address.

## How to avoid the need for reactivation

**Steps to take to keep subscribers «awake»:**

- **Analyze your newsletters and audience**, react if subscribers do not like some emails, get rid of ineffective subjects, texts, designs and CTA buttons that are least clicked on. Study requests of customers, respond to them in your newsletters, then your emails will always remain relevant.

- **Keep track of the subscriber's life cycle** and predict the moment of «falling asleep» — conduct analytics on newletters. If you know that, on average, subscribers stop being active after three months, send an email that gives a discount or grants access to secret content in advance.

- **Keep in touch with the users from the moment they subscribe** — create a series of welcome emails that will show your subscribers that they are important to you. Personalize your newsletter, make individual lists of products and content according to the user's interests, ask for an opinion about your content.

- **Do not send too many emails.** Even the most loyal subscribers can unsubscribe because of it.

## Conclusion

Reactivation is a campaign for inactive subscribers who have not opened your emails, clicked the links and purchased anything for about three to nine months. Reactivation campaigns aim to win back these subscribers.

Reactivation newsletter is carried out after finding out the reasons for subscriber inactivity and segmentation of the audience. The most successful strategy is to send a series of emails connected to each other (no more than five emails).

If the user does not react to the reactivation series, delete them from the database. It is pointless to keep «sleeping» subscribers because it is a waste of the marketing budget. Besides, it damages the reputation of the sender's IP address.


Read about what reactivation emails are and how to use them. Learn about the most common subscriber reactivation mistakes.

large_How to Reactivate Inactive Email Subscribers.jpg

medium_How to Reactivate Inactive Email Subscribers.jpg

small_How to Reactivate Inactive Email Subscribers.jpg

thumbnail_How to Reactivate Inactive Email Subscribers.jpg

How to Reactivate Inactive Email Subscribers.jpg

Reactivation is a campaign for inactive subscribers who have not opened your emails, clicked the links and purchased anything for about three to nine months.

Reactivation of “Sleeping” Subscribers: What Emails to Send

How to Reactivate Inactive Email Subscribers

<Img
img="/uploads/influencer_marketing_e4e8fafe8f.jpg"
alt="Influencer marketing"
/> 

Influencer marketing is on the rise. From 2016 to 2020, investment in this type of marketing increased from $1.7 billion to $9.7 billion. Such brand trust proves that influencer promotion works. Let’s try to figure out what influencer marketing is and how to build a strategy for working with influencers and track the result correctly.

## What is Influencer Marketing

Influencer Marketing is promoting products or services through opinion leaders, or influencers. An influencer is not only a celebrity but also a blogger, an expert in his field, who runs social media. You don't need to have a million followers to become an influencer.

The effectiveness of influencer marketing does not depend on the number of subscribersю The engagement of the audience in the influencer's content — that’s what matters. Now people trust small bloggers whose audience does not exceed 3000 subscribers, more than large ones. Why? There are no strangers and you can feel free.

By audience size, influencers are divided into several groups:

- nano-influencers — 1,000 followers or less;
- micro-influencers — 1,000 – 100,000 followers;
- macro-influencers — 100,000 – 1 million followers;
- mega-influencers — more than 1 million followers.

The difference between influencer marketing and direct advertising in a native way. Product promotion doesn't look like advertising. From the point of view of the subscriber, a blogger is just a friend who recommends what he likes: products, places, entertainment. Advertising becomes part of the content, and the audience perceives it loyally. The influencer knows his audience well — he knows what topics subscribers like, so his account is a ready-made channel for communication and promotion on social media.

## Influencer Marketing Campaign Types

**Direct** recommendation is a call to follow a link or take a desired action.

**Review** is a detailed description of your product, or several products along with yours to make it look more natural.

**Product placement** is a technique where the brand is mentioned natively in a frame. Bloggers took this technique from the cinema industry. Remember what brand of sneakers Marty McFly wore in the second part of the trilogy? That's right, it was Nike!

**Unboxing** is a format when an influencer receives a product from you to test it out in front of his audience.

**Giveaway**  — contests on Instagram. You supply bloggers with your product or service and he promises to give this present to the followers who subscribe to his sponsors.

<Img
img="/uploads/giveaway_9bc7a81966.png"
alt="use giveaways on Instagram"
src="Lifebox Food and Punks and Chancers use giveaways on Instagram"
/>

## Influencer Marketing Strategy

Influencer promotion is a type of social media marketing, and proper marketing is impossible without a strategy. You can't just pick the most popular blogger and invite him to promote your brand. Even if an influencer has a million followers, the return will be minimal if his audience does not suit you. To start social media promotion through influencers, find the influencers in your niche, set the budget and goals of your campaign.

### 1. Find influencers and decide on the payment

It is easy to find a blogger with a suitable audience if you deal, for example, with beauty topics. For complex technical products, you will have to spend more time searching.

Three ways to find an influencer in your niche:

- Use special services. Look for bloggers on the topic you need through paid platforms: [**Epicstars**](https://ru.epicstars.com/), [**GetBlogger**](https://getblogger.ru/), [**LabelUp**](https://labelup.ru/), [**Adlab.io**](https://adlab.io/), [**Easyprbot**](https://easyprbot.com/#/reviews/), [**Efir.io**](https://efir.io/ru), [**trendHERO**](https://trendhero.io/ru/). These tools provide topics, account statistics, and ad prices.
- Blogger agencies. For example, [**Feedstars**](http://feedstars.ru/), [**Blogger Brand**](https://bloggerbrand.ru/) can help you select the influencer that suits you, but you’ll have to pay a commission for the service.
- Search yourself in thematic communities and specialized media or in the list of speakers at conferences. It is not the fastest option, but cheap.  

The advantage of cooperation with influencers is the ability to work on a barter basis. Usually, micro-influencers with a small number of subscribers agree to such conditions.

**Check influencers**

Not all bloggers are really popular. In fact, their audience may not be real.

Social media promotion is also a "dark" method that creates the appearance of success and misleads advertisers: bot followers, fake likes, bought comments. The platforms try to struggle with cheating, but it’s not always effective. That’s why before collaborating with an influencer, you should check it yourself.

- Boost subscribers, likes and comments

There are 10 thousand subscribers, but only 20 likes on the post. Looks suspicious, doesn’t it? Perhaps most account followers are bots. A lot of inane comments — “awesome content", "nice", and just emoji are also signs of cheating. How to check if you are looking at the account that employs bots? Use [**Panda Rank**](https://pandarank.com/ru/), [**LiveDune**](https://livedune.ru/), [**Hype Auditor**](https://hypeauditor.com/en/), [**FakeLikeInfo**](http://fakelikeinfo.ru/) and other services.

- Audience engagement

The normal engagement rate is 8-10%. When the indicator is lower, subscribers are not interested in the content. If the percentage is higher, it’s time to suspect cheating. The exception is peak situational moments of popularity growth.

For example, before the participation of the Italian group Måneskin in Eurovision 2021, there were no more than 3 thousand comments on the posts in their account. During the competition, the number increased to 10 thousand. On the publication with the winning award, subscribers left a record 27 thousand comments.

### 2. Assess the risks of working with bloggers

Influencers are non-professional advertisers. Some of them do not even understand what social media marketing is. In most cases, the audience liked their content because it appeared at the right time. Not everyone is good at advertising. What could go wrong?

Just because an influencer's content is successful doesn’t mean the ads for your brand will be the same. Before offering, find previous advertisers and ask them for [**feedback**](how-to-use-customer-feedback-to-increase-sales) on working with the blogger, see other ads that were made by this blogger. Ask yourself if you are satisfied with its quality.

How to avoid mistakes? Set a clear task and agree on the approval of advertising before publication, provide additional materials and examples. But don't write a detailed script. Let the blogger do his things. His audience subscribed to his content. If he goes along with the script, like a puppet, the followers will notice it. They are unlikely to be happy.

### 3. Set your budget and stick to it

Some influencers can ask for a payment over your budget. In this case, offer barter plus payment or percentage of sales. But don't overestimate the influencer. Expensive is not always good. Remember, sometimes several micro-influencers are better than one macro-influencer. 

One ad integration with a very famous blogger will have a short-term effect — people look and forget. With several bloggers, you can test different ad formats and create the effect of your brand's presence everywhere. That’s how RICHE did this on Instagram.

<Img
img="/uploads/influencer_marketing_richecosmetics_13967dd424.jpg"
alt="Advertising campaign of the brand on Instagram"
src="RICHE advertising campaign on Instagram"
/>

How much does social media influencer marketing cost?

- The unspoken industry rule is $100 per 10,000 followers
- Another way is to count based on actual engagement: likes, comments, shares. Influencers that follow this pricing model charge $250 to $750 per 1000 engagement, on average.

Of course, any division is conditional, and the real price may differ from the general rules.

### 4. Set promotion goals

Promotion is a process that should always start with goals. Why do you need Influencers? What kind of result do you expect from them?

Possible options for the goals of influencer marketing:

- [**Brand awareness**](povyshayem-uznavayemost-brend-ustanavlivayem-avatar-email-otpravitelya) — more people will know about your product and not confuse it with another.
- More sales — increasing in units sold during the campaign.
- Increasing [**brand loyalty**](customer-loyalty) — the number of people who trust your brand speak positively about it.
- Engaging your audience in your content. A blogger can advertise not a product, but your resources and useful guides and other materials, which will later lead to a purchase.
- Increasing the number of subscribers in your social media accounts.

### 5. Track influencer campaigns

Assessing the effectiveness of influencer marketing depends on your goal.

**How to evaluate sales:**

- Give a unique [**promotional code**](/features/loyalty-programs) to an influencer. This way, you will find out how many purchases his audience made.

<Img
img="/uploads/promo_code_173d9a13fd.jpg"
alt="Promocode on Instagram from bloggers"
/>

- Use UTM in the link to track not only the fact of the sale but also the movement along the conversion funnel: from clicking on the blogger's link to actions in the cart of the online store. Such an analytics tool as  [**Google Analytics**](https://analytics.google.com/analytics/web/provision/#/provision) will help you.
- Ask the influences for statistics, but you need to be sure of his honesty.

**How to track results on other goals:**

- Brand awareness can be measured by the number of searches in search engines for your brand, such as  [**Google Trends**](https://trends.google.ru/trends/?geo=RU). Compare results before, during and after the campaign.
- If it comes to track brand loyalty, you should measure the number and tone of comments on your publications and the blogger's post, or compare the ratio of likes and dislikes on YouTube.
- Audience engagement and retention is counted by the change in the number of likes, reposts and content shares during the campaign. For videos on Youtube, you can check how many people keep watching the video at the moment of advertising. If there is no fall, the audience accepts the advertisement positively.
- If you want to know how the number of subscribers is changing in your accounts, calculate the dynamics before and after the campaign and estimate how much you spent to get a customer.

## Conclusion

Influencer Marketing is an effective tool for brand promotion, but it is not a magic pill. The blogger does not give a guarantee of the result and may get out of your control, for example, to advertise not in the way you expect or even damage the company's reputation. Therefore, preparation is important — build a strategy, study the statistics and reputation of the influencer. Remember, you are going to make that person the face of your brand for the duration of the campaign.

We talk in detail about Influencer Marketing: what it is and how to build a strategy for working with influencers

medium_influencer marketing.jpg

small_influencer marketing.jpg

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influencer marketing.jpg

We will tell you what influencer marketing is and how it helps companies to promote.

What is Influencer Marketing and How to Use It for You Business

Influencer Marketing: How to Build Your Strategy

<Img
img="/uploads/marketing_attribution_definition_and_models_201442c7a1.jpg"
alt="What Is an Attribution Model"
/> 

The user goes to the website, sees the ads and immediately buys the product. That’s what every business wants. Unfortunately, this rarely happens — 98% of people do not visit a company’s website for the first time to make a purchase. On average, a purchase requires seven touches, and among these touches, each channel will more or less influence the user's decision. How do you know which channels are the most effective? Select and use a marketing attribution model.

## What is Attribution in Marketing

Attribution modeling is the distribution of value (weight or points) across the channels that led to the conversion. Attribution shows the [**customer journey**](stroim-customer-journey-map) from the first touch to the desired action.

**What does it mean?**

Let’s take a look at John. He saw an ad for sneakers on Facebook, became interested and clicked on the ad. On second thought he decided not to buy it yet. Later, John was shown a banner ad for the same sneakers, but this time on Google. He went to the website again and even added the product to the cart, but forgot about it. After 5 days, he saw an advertisement again. This time on Instagram. He even took a screenshot so as not to forget and look later, but he did not click on the advertisement. Later that evening, John found a model of the sneaker on Google and finally bought it.

**Which channel brought the client?**

If you think it was organic search, then this is one type of attribution. But what if it was the first touch on Facebook ads? Then it is another type. Evaluating all channels equally is the third one.

Attribution is a tool that helps to track touches with a brand and understand where to invest money, and on which channel the budget is not worth spending.

Also, with attribution models, a conversion window is set — the period of time between the first touch and the purchase. There may be options: from 1 day to 28 or more. It depends on the length of the sales cycle.

Let's say we are launching a campaign to sell a certain brand of cars. In this case, the attribution window should be at least 28 days, because hardly anyone decides to buy a car spontaneously in 3-7 days or less.

How to track customer touches with a brand? Different platforms collect only their own data: Facebook, VK, Google services and others. If you want to track what result each channel brings, you can use a [**tracking pixel**](ak-pixel). It is a piece of code that collects information about user actions. All you need to do is to add this code to the pages of your company website.

## Why You Need to Use Attribution in Marketing

The [**customer journey**](customer-journey-automation) to purchase, where he saw and bought, is rare, especially if the product is complex and expensive. After the first acquaintance, your customer goes through several stages: clicking on a banner ad, subscribing to a newsletter, searching for a product and information about it on Google. If the company does not know how the customer actually comes to the purchase, then it risks investing the budget in the wrong channels.

**How marketing attribution helps businesses:**

- The ability to properly distribute the marketing budget between channels and reduce the risk of losing money, as well as increase ROAS and ROI.
- Better [**personalization**](/features/personalization). The more you know about your customers, the more likely you offer them what they need and do this using the right channel — the customer-friendly one.
- Building a relationship with a client. Relationship marketing is the key to long and profitable relationships with users or partners. This type of marketing has replaced the paradigm of fierce competition and conflict. The built relationship with the company retains the customer and helps to personalize purchases and services.

## Types of Attribution Models

When it comes to marketing attribution, one size doesn’t fit all. The same model will not work for every business. For example, for the real estate industry, counting the last click is a bad idea. It can take several months from the first touch to the purchase of an apartment. Let's look at different types of attribution models and discuss their pros and cons. 

### First Click Attribution

The first interaction with the user, such as a click on a banner ad, gets the most value per conversion. It is estimated that the platform, where the first touch took place, brought the desired action. The rest of the channels are not taken into account. 

**Pros:**

- Easy to understand and implement. 
- Opportunity to evaluate brand awareness campaigns and demand generation.  

**Cons:**

- It's not an advanced model, there are optimization limitations. In other words, we always evaluate only the first channel. Is it effective or not? Should we increase the budget for it or limit it? 
- “Accurate” and “impartial” — it is not about this model, because First Click Attribution does not take into account the merits of other touches. 

<Img
img="/uploads/first_click_attribution_7c5d93a800.jpg"
alt="First Click Attribution"
/>

### Last Click Attribution

The main value goes to the source that the user visits before making the desired action. Last click attribution has long been the most popular and even now it is the default setting in Google Analytics. 

**Pros:**

- A good option for tracking purchases that happen quickly and spontaneously.
- The model is accurate and easy to evaluate. For example, if users clear cookies, all data will be lost. But with the last touch attribution model, it’s not a deciding factor, because the period between the last click and the moment of conversion is short.

**Cons:**

- Other types of interactions are not counted, so you might draw the wrong conclusions about your campaign.

<Img
img="/uploads/last_click_attribution_5aff535620.jpg"
alt="Last Click Attribution"
/>

### Last Indirect Click Attribution Model

This model is similar to the previous one, but it gives more value not to the click, but to the last marketing action before lead conversion.

**Pros:**

- The model filters direct traffic that may have been the result of campaigns providing more informative and accurate data.

**Cons:**

- As with last-click attribution, we can’t track the customer journey.

<Img
img="/uploads/last_indirect_click_attribution_e2364b28d4.jpg"
alt="Last Indirect Click Attribution Model"
/>

### Linear Attribution

The value is distributed across all touchpoints. The linear model seems more impartial than last-click and first-click attribution, but it remains controversial because all channels cannot be equally effective.

**Pros:**

- Simple but more advanced than single-channel models. 
- A balanced view of your entire marketing strategy.
- It will show which channels have value — it will display each channel that participated in the path to conversion.

**Cons:**

- Although we can see all the channels that participated in the conversion, we will not be able to find out which one worked better. In other words, the model is useless if you need to distribute the budget for each channel in terms of efficiency. 

<Img
img="/uploads/linear_attribution_2105cd6457.jpg"
alt="Linear Attribution"
/>

### Time Decay Attribution

More weight in this model belongs to interactions that were closest to the conversion. The first touches are less valuable.

**Pros:**

- Scientific and logical model.
- Suitable for transactions with a long sales cycle, such as purchases in B2B or in the real estate industry.
- Helps evaluate customer relationship building campaigns.

**Cons:**

- It is almost impossible to define which channels brought the user first.
- The risk of overestimating the merit of a channel. The last visit before buying is not always decisive.

<Img
img="/uploads/time_decay_attribution_103b2b8beb.jpg"
alt="Time Decay Attribution"
/>

### Position-Based, or U-Shaped Attribution

The first and last touchpoints receive 40% of the value each, while the remaining 20% is divided between any touches that occurred in the middle of the funnel.

**Pros:**

- A powerful tool for the businesses that initially have a plan for multiple touchpoints before buying, rather than fast conversions.
- The most important channels receive value: the user's first acquaintance with the product and the last touch that motivates him to buy.

**Cons:**

- It doesn't consider marketing efforts beyond lead conversion. The first touch is not always successful. For example, the user doesn’t always understand what you are selling after the first touch. In this case, the following touches will introduce him to your product. Sometimes the actions in the middle of the funnel are more significant: notifications about a new price, newsletters about new products, perhaps, motivate them better than direct advertising.

<Img
img="/uploads/position_based_attribution_7dc46aaffa.jpg"
alt="Position-Based, or U-Shaped Attribution"
/>

### Data Driven Model

It is an algorithmic attribution model that uses machine learning to evaluate the customer's actions before he makes a purchase. Algorithms choose the most effective ads, keywords, and campaigns. In this attribution model, the patterns that led to the purchase or, conversely, prevented it, are found and compared.

**Pros:**
 
- The model is advanced and provides accurate data.
- Opportunity to assess all channels that you use to communicate with the customer.

**Cons:**

- It’s difficult to set up and work with it. You’ll have to find powerful software and competent analysts.

<Img
img="/uploads/data_driven_attribution_142be320fa.jpg"
alt="Data Driven Model"
/>

### W-Shaped Attribution

The model looks like a U-Shaped attribution, but this time it’s not only extreme points that get weight. We have an additional touchpoint. It’s a touch in the middle of the path, where there is a possibility that the client will become a buyer. For example, a company launched a mailing list, held a private sale, and so on. These points receive 30% each, and the remaining 10% is divided among other touches in the funnel.

**Pros:**

- Evaluating potential touchpoints that could have induced a customer to purchase in the middle of the journey. It gives you an opportunity to optimize a campaign, add or exclude broken channels.
- Suitable for lead generation campaigns.

**Cons:**  

- It is not always clear how the customer met the brand in the middle of the journey, 10% of the value for all other touches is negligible.
- Complexity of customization.

<Img
img="/uploads/w_shaped_attribution_e05ec5b80c.jpg"
alt="W-Shaped Attribution"
/>

### Full-Path, or Z-Shaped Attribution

The Z-shaped model takes the concepts of the W-shaped model. So we have the first touch, the last one and the stage of the conversion opportunity. But this time you get a touchpoint where the user becomes a lead: he subscribes to the newsletter or sends his email in exchange for something (usually content). 22.5% of the value is divided between four touchpoints, and the remaining 10% — between the rest.

**Pros:**

- Accurate and complete tracking of the customer's path to conversion.
- More opportunities to define strategies that work.

**Cons:**

- Difficulty in implementation. The model is only suitable for companies where marketing and sales are fully synchronized, and marketing deals directly with existing sales opportunities.

<Img
img="/uploads/z_shaped_attribution_f95dc2e0ac.jpg"
alt="Full-Path, or Z-Shaped Attribution"
/>

### Custom Attribution

A model works for companies with well-built marketing and sufficient resources: technology and competent analysts. The value is assigned manually for each interaction, but only after deep analytics of a large amount of data.

**Pros:**

- A complete picture of the customer journey with all the nuances.

**Cons:**

- This model is for advanced teams because it’s difficult to set up.
- It requires a lot of data to analyze, which takes time. Therefore, the model will pay off for a large sales cycle.

## Conclusion

Working with attribution models requires resources: time, team knowledge, advanced software. Used correctly, the attribution model will become a reference point for the company. A successful business knows not only the portrait of its client but also his path to purchase, which means it gets more chances to offer its product or service to the customer at the right time and in the right place.

How do you know which channels are the most effective? Select an attribution model and collect data from all customer touchpoints.

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How do you know which channels are the most effective? Choose and use an attribution model.

What Is an Attribution Model in Marketing and Why Businesses Need It

Marketing Attribution: Definition and Models

<Img
img="/uploads/blog_f8e91e069d.jpg"
alt="How to Do Market Research"
/> 

You can’t launch an advertising campaign and build a marketing strategy without sufficient information — it's a business risk. Successful marketing research will help launch products that are interesting to the audience. It's not always low-cost to do research, but to enter the market with a product that the consumer doesn't need is an even bigger loss of money. Find out in this article what marketing research is and how to do it correctly. 

## What is marketing research?

Marketing research is the collection, classification and analysis of information about the market situation: prices, competitors, customers and more. Market data allows businesses to build strategies and minimize uncertainty. Market research is carried out by individual companies and specialized agencies; for example, [**Deloitte**](https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consultancy/deloitte-uk-consulting-global-marketing-trends.pdf), [**BCG Group**](https://web-assets.bcg.com/3d/c7/1a2d0ffb480d8d4eb45412854116/20201009-consumer-sentiment-wave-3.pdf) and others.

<Img
img="/uploads/how_to_do_market_research_deloitte_743d4e43f0.jpg"
alt="Market research example"
src="Market research examples of Deloitte"
/>

## Why is marketing research important?

Internal marketing analytics answers the question "what is happening", whereas marketing research tells you "why this is happening."

Imagine, some analytic data shows that 30% of users abandon an item in an online shopping cart. It’s marketing analysis that can explain the reason: too high of delivery costs, inconvenient checkout process, competitors were cheaper, and so on.

**Marketing research is necessary to:**

- Identify trends and best practices in the market and repeat successful experiences.
- Get to know your potential customers and their needs, and give them what they want.
- Plan new products, services and changes in the company, not in isolation, but together with consumers.
- Run more effective marketing campaigns: marketing is still numbers, not just creative ads.
- Get to know competitors and work with them correctly; understand strengths and weaknesses.
- Build pricing correctly.
- Adjust business strategies if market trends change.

The market research volume is projected to [**grow**](https://www.thebusinessresearchcompany.com/report/market-research-services-market) to $83 billion by 2023. For comparison, it was $76 billion in 2019. This means that companies are putting less and less trust in the intuition and authority of leaders, and are instead trusting the data.

<Img
img="/uploads/Prognoz_rynka_marketingovyh_issledovanij1_ab8c39cb5d.jpg"
alt="Forecast for marketing research till 2023"
/>

## Primary and secondary research

Marketing research is divided into two types: primary and secondary. They differ in the way the information is collected.

### Primary marketing research

Such research is conducted from scratch by the companies themselves. They do not use information from third-party sources. Primary research answers specific questions, and the research purpose is always aligned with the company's business. This type of research is reliable because the company knows exactly how the data was collected and what methods of counting were used. However, primary field research is not always within budget.

### Secondary marketing research

Secondary research is a search for information among already existing materials from both official and unofficial sources: reports of other companies, agencies, consulting companies and government organizations (IBISWorld, CB Insights). The downside is that you cannot be sure of the accuracy of the information and the correctness of the calculations. Additionally, the data from such research quickly becomes outdated.

## Types of market research

There are dozens of types of market research. Due to the development of digital technologies, there is a need for new ones. Let's talk about the most popular types of research.

<Table>
| **Type** | **Description** |
| ------ | ------ |
| **Market Research** | Exploring opportunities, mechanisms and market trends in order to make appropriate business decisions. The position of competitors and potential obstacles are also assessed. As a result, the company can find the right niche and assess the profitability of the business in the current environment. |
| **Macrosystem Research** | Analysis of external conditions — all markets in the industry that can indirectly affect the results of the company. | 
| **Buyer Persona Research** | Identification of the target audience — age, gender, income, social status, interests, education and other parameters  — in order to determine the correct segmentation of the audience. Research gives you a deep understanding of the audience's problems in order to offer a solution as a product or service. |
| **Competitor Research** | Allows you to identify the weaknesses and advantages of competitors and assess the possibilities of cooperation. Analyze competitor's prices and advertising campaigns. Competitive analysis helps you understand your place in the market, separate yourself from competitors, and ultimately outrun them. |
| **Product or Service Use Research** | Product researchers study the specifics of how consumers use the product: how they react, what difficulties they have in the process, etc. Research drives product improvement. |
| **Pricing Research** | Price research is the study of the cost of similar goods on the market: what price the buyer expects and what price he is actually ready to pay. The purpose of the study is to find the price at which the company will receive the maximum profit in the current environment. |
| **Brand Awareness Research** | Helps you understand whether the target audience knows your brand, whether potential customers perceive you correctly, and how you could improve your positioning. |
| **Customer Satisfaction and Loyalty Research** | Assessing the level of customer satisfaction with a product, service or company. The research shows whether the customer's expectations match reality and what flaws are experienced with your product. As a result, the company receives an answer on how to make the level of loyalty such that the customer comes back to make a repeat purchase. Besides, these studies help to adjust advertising campaigns and find ways to improve customer experience. |
| **Market Segmentation Research** | The company defines consumer segments in the industry. This way, it can offer each segment a product according to their interests, habits, and product needs. By analyzing each segment, you can identify narrow niches and create a product entirely for the client. |
| **Campaign Research** | Research and analysis of past campaigns takes place through an experiment that is carried out with existing clients and potential audiences. A research analyst explores the elements of campaigns that generate the greatest response in order to use them in future projects. |
</Table>

## Marketing research methods

Among the classic marketing research methods are observation, focus groups, polls, interviews and experiments.

**Observation** — Researchers observe a person who uses a product under real or simulated conditions.

**Focus groups** — Several people in a group of 6-10 test out the product and then discuss it with a moderator. This method can cost you a pretty penny, and there is a risk of dishonesty from the participants because of the influence of other people in the group and the authority of the moderator. Another flaw is that focus groups cover a rather narrow audience.

**Survey** — the easiest and most popular way to research. The respondent is asked to answer a series of questions, either short-answer or multiple choice. There is the potential for false results because buyers might report loyalty to some brands in the survey, but buy others.

With the development of technology, market research methods are becoming more digital and the research process is accelerating. Online surveys are very easy to conduct, and companies actively use this option on websites and social networks.

The marketing automation platform [**Altcraft Marketing**](/en) has its own service for creating surveys, questionnaires and applications. This service is called [**Forms**](updates-in-the-altkraft-marketing-platform). Using directly obtained data, you will make targeted advertising and get new customers. In addition, if you are aware in advance of what your customers are unhappy with, you can quickly react to negative reviews. This way, you’ll be able to keep a positive public opinion about your brand.

<Img
img="/uploads/aviasales_ad6e8b5536.png"
alt="Example of a survey on the Aviasales website"
src="Example of a survey on the Aviasales website that users see while the ticket search is loading"
/>

**Experiment** — A method that studies a change in some familiar parameters: packaging, prices, elements, configuration, etc. One or more variables are changed and the results observed. This method can be costly, especially if the price is changed for the experiment.

**Interview** — A one-on-one conversation with respondents. This method helps to dive deeper into the client's difficulties. What’s more, interviewers can read non-verbal signals during an in-person meeting. The method can bring about unexpected conclusions; for example, one may learn opinions about the product that the company did not even know about.

## Marketing research steps

In the classic marketing research process, there are 6 steps.

### Step 1. Identify the problem

The first step in the marketing research process is to decide what problem we must solve with the help of research: an advertising campaign is ineffective, demand for a product is decreasing, a new product is released that needs to be made successful, and so on. Then we define the research purpose. The purpose should answer the question of how to solve the problem or correctly identify it. Based on the goals, we set tasks — the actions that will lead to the goal.

Let’s say we have a company. We’ll call it Company N. Company N’s competitors released a new product, and sales dropped. The purpose of the research may be to determine the competitive advantages of a competitor's product, and then use the collected data to refine your product. Tasks are comparing prices, analyzing reviews for each product, and more.

### Step 2. Research plan

To avoid possible mistakes, the plan should be detailed and include the following points: research budget, methods, sources of information (primary or secondary), description of the audience for the sample, and methods of collecting information.

### Step 3. Collecting data

This is the longest stage, and also where the most mistakes occur. Here you can face bad faith of respondents, market researcher bias and even incorrect data collection. Detailed preparation for research helps you to minimize errors.

### Step 4. Data analysis

Researchers analyze the data they obtained using electronic means, market research tools or on their own (for example, open questions in surveys). Based on the analysis, the results are formed.

The analysis includes:
- data verification: surveys with questions, viewing interviews and so on;
- editing: excluding incorrect answers and those that cannot be processed;
- classification of responses and coding them into a more understandable form;
- transfer of data to the analysis tool: tables, special services;
- data cleansing and work with missing answers, data correction;
- the data analysis itself.

### Step 5. Presentation of results

The customer of the study receives the processed data in the form of clear and formalized results and conclusions. The report also includes a description of the objectives, research methods, and recommendations.

### Step 6. Making decisions

After checking the results, the customer draws conclusions and makes business decisions regarding the problem that the research is supposed to address. In some cases, research can actually reveal a new problem.

<Img
img="/uploads/6_steps_to_successful_marketing_research_b9b7479034"
alt="Marketing research steps"
/>

## Conclusion

Marketing research is a pillar for business and a kind of compass that indicates the right direction of development. No method can give a 100% guarantee that your business decisions are correct. But with research, there is a better chance of getting an objective picture and avoiding the [**HiPPO Effect**](https://www.forbes.com/sites/bernardmarr/2017/10/26/data-driven-decision-making-beware-of-the-hippo-effect/?sh=571fc6780f9f), when a business makes decisions based only on the opinions and intuition of managers. Data is a more reliable advisor.

Successful marketing research will help launch products that are interesting to the audience. Learn about the steps of the marketing research process in our new article.

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You can’t launch an advertising campaign and build a marketing strategy without sufficient information — it's a business risk. This is where market research comes in handy.

Marketing Research: What It Is and How to Do It

How to Do Market Research

![ak-leads-chase.png](/uploads/ak_leads_chase_fa7248a039.png)

In order to have a better understanding of your target customer and develop a successful marketing campaign there’s a tool called trigger. Using triggers one can softly call to a definite action. Let’s take a closer look at the most popular triggers that are successfully used by our clients. As an example, consider an online shop.

### 1. A customer creates a personal account.

Opt-in can be followed by a greeting email:

- you can offer a wellcome discount to a new customer; 
- suggest to share the information in social media;
- present a short overview about your company, its services and description of assortment; 
- attach a special offer to keep a new customer’s engagement high;
- suggest to subscribe for your newsletters to keep the customer and make your presence felt by new offers and interesting news.


### 2. Customers don’t read  your emails and don’t follow the link. 

The reasons for that can be different. Perhaps, the letter was sent at the wrong time or the title and its content  were of no interest to your addressee. You can segment these customers and  send them emails with altered content in a different time.

### 3. Placing an order

In case the definite item is out of stock and a customer adds it to their notification list,  notify them when this item is back. Don’t forget to inform customers about the status of their order. If a customer closes a purchase send them the details of their order and remind them of delivery options. Upon receiving an order ask a customer whether they are satisfied with service level and whether they have any suggestions for its improvement. Information provided by customers will be useful for your business.


### 4. Basket abandonment.

In case your customer hasn’t placed an order it’s a trigger to email them.  It might be  that a customer failed to understand how to complete the purchase or perhaps something distracted them from doing that. In any case you’d better:

- remind them of their abandoned basket; 
- offer related goods at a more favorable price or give a discount for items in their abandoned basket;
- ask whether the interface is friendly for them.


### 5. A  customer cancelled the order. 

That also can have different reasons. A customer changed their mind or found the same item in another shop at a more favourable price,had some troubles with the interface. In any case you should get in touch with them and gently find out the reasons for that. Do this you can create a special form to receive their feedback.

### 6. Schedule your campaigns 

Planned offers, seasonal discounts and emails of that kind are sent according to your schedule. You should always inform your customers about new collections and your sales. Don’t forget to offer special incentives, discounts and presents for their or your brand’s birthdays. Let them move with the times and tell about seasonal trends and novelties, bestsellers and cut price articles.  Keep customers currently informed about the most interesting articles in your blog.

### 7. Remind about yourself and leave no customer bored.

Keep up and stir up customers interest. Keep your communications going when the shopping is finished.  Make an exciting offer based on your customer’s previous orders. Stay in touch.
Following these recommendations the main thing is not to bombard your customer with lots of emails and sms so they are sick and tired of you. A customer may unsubscribe or even worse hit the spam button.






Find out how you can use triggers to understand your target audience and take customer communication to the next level.

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Let’s take a closer look at the most popular triggers that are successfully used by our clients. As an example, consider an online shop.

Customer Data Platform

Omnichannel Marketing

Loyalty programs

Drag-and-drop email designer

Personalized mailings

MVT and A/B testing

Real-time analytics

Integration and WebHooks

Forms and Surveys

Messaging apps

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