Revenue Attribution: Everything You Need + Dashboards

In this article, I will talk about what revenue attribution is, why it is important for SaaS companies, and some examples of revenue attribution dashboards that you can utilize. Although this article is relatively short, I believe that you can learn a lot from it if you read it.

What Is Revenue Attribution?

Revenue attribution sometimes referred to as marketing attribution, is making sure that your potential customers get the right type of advertisements. With innovative software tools like HockeyStack, you will be able to match your advertising to the right audience.

Calculating this metric takes into account which sorts of customers bring more revenue as well. This is why it is named Revenue attribution instead of simply being named Attribution. Attribution is when you calculate the overall efficiency you have while reaching new customer bases.

Increasing the efficiency with you conducting your revenue attribution will enable you to reduce marketing costs and increase the profit you get from it. This is especially important for (1) companies that experience seasonal trends, meaning they need to spend more advertising in certain periods, (2) bigger companies that spend a lot on advertising anyway, and finally, (3) companies that are new to a sector and need to spend a lot to increase their reach.

If you are one of the three types of companies that are mentioned above, revenue attribution is vital for your company. Having your reach as it is for bigger companies and increasing it for relatively smaller companies is vital for the future of a company.

One of the vital aspects of revenue attribution is that it enables you to determine which platform would be most suitable for your marketing campaigns, meaning which sort of websites would be more suitable for your target audience. In addition to that, you will be able to make monetary comparisons regarding which media platform would be suitable for your advertisement campaigns. This includes newspapers, TV internet, and other platforms.

Revenue attribution will be primarily for a new-found company in this regard. You will be able to make a comprehensive analysis of what kind of a customer base you have. However, that is not to say that keeping track of your revenue attribution is useless. You need to make at least, monthly calculations to figure out trends in your sector.

Why Is Revenue Attribution Important For SaaS Companies?

One of the most important aspects of SaaS companies is that everything is constantly changing. This means that customer groups themselves change as well. You both need to take into account how your industry and the groups within your target audience change. Understanding this situation is vital for increasing the efficiency of your marketing.

1. Reaching New Audiences

It is also relatively hard to figure out how to reach a new audience. This can be due to how as a new SaaS company, it might be hard for you to figure out where your audience actually is and how your priorities change every now and then.

In addition to reasons that might be caused by your company, keep in mind that SaaS as an industry is quite fluid as well. Most SaaS companies change rapidly and rebalance their approaches to suit their needs better.

2. Increasing Your User Activation Rate

Please also keep in mind that revenue attribution is especially vital for the user activation process, which in turn is very important for SaaS businesses as a whole. You need to figure out what sort of a customer base you have and how you can reach them more efficiently. This, in turn, will help you to calculate whether or not retaining an existing customer or reaching a new one would be more profitable.

Of course, an increase in your user activation rate is as same as a reduction in your user churn rate. This means that utilizing a revenue attribution tool for your SaaS business will help you to improve two metrics at the same time.

3. Exist in a Competitive field

Another important aspect that makes revenue attribution important for SaaS companies is the fact that most of the time, companies provide their users with discounts and other benefits to make them more attractive. This is the case, for example, Netflix, which provides its new users with a free trial that lasts a month. This is the case for many video streaming services like Hulu and Amazon Prime as well.

Here are some methods employed by SaaS companies to draw more users, which you could use for your revenue attribution process:

  • Build a Reference system
  • Offer periodical discounts
  • Enact loyalty programs

4. Know Your Metrics

In addition to considering these factors, it is always beneficial to take into account you can always utilize revenue attribution for other purposes since the entire process of revenue attribution is both hassle-free and relatively cheap (especially when you consider its overall benefits). Thus you should always conduct this process whether or not you belong to one of the company types mentioned above.

Revenue Attribution Dashboards To Use

In this section, I will go over two revenue attribution dashboards that every SaaS company should be utilizing in order to better understand what drives revenue.

You can check out revenue analytics or our live demo to see more.

1. Blog Posts That Drive Revenue

From HockeyStack

In this dashboard, HockeyStack analyzes blog posts that drive revenue. On the left side, you can see PageURL, representing the web address of the blog posts. On the right side of it, there is the signup section, representing how many active signups there are brought by the blog posts.

Signups represent the number of signups the blog post brought to you in the given timeframe.

On the rightest side, you can find MRR, which stands for Monthly Recurring Revenue. This represents the average value you get in a month from the mentioned content.

Basically, this dashboard is utilized to help you with the most successful sections of your website. In this way, you will be able to incentivize the content that achieves to draw more visitors and MRR. Of course, you will also be able to take into account your company’s average customer acquisition cost while going through this process.

2. Revenue By Channel

From HockeyStack

Revenue by Channel is one of the most classification methods through which you analyze where your customers come from. Above, you can see some of the websites through which a website gets its visitors and revenue. The top two are Capterra and G2, both of which are review platforms for SaaS software tools.

Next to them, you can see the term titled LTV, meaning Lifetime Value, representing the average revenue a visitor brings during their entire journey with your service. You can classify sources according to this metric, which would help you to make long-term plans for your website.

ACV, on the other hand, meaning annual contract value, refers to the average value of an annual contract. Another advantage of this metric is that it will enable you to consider norms among your customers. This metric is pretty similar to ARPU.

How to Utilize Revenue Attribution For Your Business

Although I have talked about what revenue attribution is and how it can affect your marketing strategies. But we should also take into account how you can utilize revenue attribution and revenue attribution tools as a part of your marketing strategy. Here are some of the ways you can make use of revenue attribution and revenue attribution tools:

1. Classify Your Data to Access it More Easily

According to the studies, most website managers agree that one of the most fundamental problems that they face while going through their advertisement program is the fact that it is hard to classify the data they already have. This is easily understandable when you consider there are a variety of factors and independent factors that are made up of comparisons between individual factors.

Revenue attribution tools, like HockeyStack, provide their users with a simplified interface that not only contains but calculates all the data they have. Although you can think that you can overcome all these problems, believe me when I say that attribution tools make it much easier. Here are some of the ways you can make your data classification process even easier:

  • Automate your data collection by streamlining it.
  • Use filters to reach the data you need.
  • Make comparative analyses in certain time periods.

2. Try Out Different Models

Although I have only given examples regarding two different dashboards, you can customize these dashboards to your liking. Although you might not know what you need at first, you will learn gradually what you need or don’t need. So, naturally, you will need to conduct a lot of testing to figure out what you need.

Here are some of the ways you can develop your own models.

  • Test out different stuff and don’t shy from experimenting.
  • Try to figure out what other companies in your field use.
  • Make short, medium and long term plans for your company and create dashboards according to these plans.

Conclusion

In this article, I have analyzed what revenue attribution is, why it is especially important for SaaS marketing, and various dashboards provided by HockeyStack software. If you think that reading this article was productive, I would recommend you to check out other articles written on the HockeyStack blog.

FAQ

What is attribution, and why is it important?

Attribution is the process of determining the average value you get from a website. This is important because it will enable you to divert your advertising funding much more efficiently. Although this increase in efficiency is important for all SaaS companies, it mainly affects those that are newer to the field.

How many revenue attribution models are there?

There are three main attribution models. They are called single-touch models, multi-touch models, and Full-Path. These are the three main models you need to make use of if you are planning to maximize the efficiency you use your revenue attribution tool with.

What is MRR

MMR stands for Monthly Recurring Revenue, meaning the predicted income you will get from all your subscriptions in a month. This metric is quite important for revenue attribution since it creates the basis for calculating how impactful a website is to your marketing. HockeyStack as a software tool enables you to track and compare MRR through different platforms.

What are the three types of companies that need revenue attribution the most?

These three types of companies are (1) companies that go through seasonal trends within a year, (2) relatively bigger companies that already spend a high amount for their marketing campaigns, and (3) companies that have just entered a given sector and need to perfect their advertising to create their customer base.

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Uncover What Drives Revenue For Your SaaS

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