Australian SMEs are rightly focused on proving the return on investment from their lead generation efforts. But as customer journeys become more complex, understanding which marketing touchpoints truly deserve credit is increasingly difficult. The simple ‘last-click’ attribution model – giving all the credit to the final interaction before a lead converts – is no longer sufficient. We’re seeing a shift towards more sophisticated approaches, and this trend will accelerate.

So, what attribution models will accurately measure lead generation performance? Here are a few key insights:

• Data-Driven Attribution: This is where the real power lies. Instead of relying on pre-defined rules, data-driven models use machine learning to analyse all your marketing data and determine the incremental impact of each touchpoint. It’s complex to set up, often requiring specialist tools, but provides the most accurate picture of what’s working.
• Time Decay Attribution: Recognising that touchpoints closer to conversion are more influential, this model assigns more credit to recent interactions. It’s a good middle ground – more nuanced than last-click, but simpler than data-driven.
• Position-Based (U-Shaped) Attribution: This model gives significant weight to the first and last touchpoints in the customer journey, with the remaining credit distributed amongst the interactions in between. It acknowledges the importance of both awareness and conversion.
• Multi-Touch Attribution with Defined Rules: While data-driven is ideal, many SMEs can benefit from a rules-based multi-touch model. This involves assigning specific weights to different touchpoints based on your understanding of the customer journey. For example, a webinar attendance might receive a higher weighting than a social media like.

The key is to move beyond single-touch attribution. The increasing privacy focus – and the phasing out of third-party cookies – means relying on broad tracking is becoming less effective. First-party data will be crucial. We anticipate that in 2027, businesses with robust first-party data strategies and the ability to integrate data across multiple platforms will have a significant competitive advantage.

Don’t get paralysed by choice. Start by auditing your current tracking setup and identifying gaps. Then, choose a model that aligns with your business goals and resources. The most important step is to start measuring beyond the last click and continually refine your approach based on the data you collect. A small improvement in attribution accuracy can unlock significant gains in marketing efficiency.