Why Revenue Attribution is important
by Jon Bosanac (LinkedIn)
“For Every tenth of a Second, You Gain 1% Revenue” Is an often quoted statistic Amazon about their revenue experience when they tested the relationship between revenue and performance and it has since become the tagline or opening statement for EVERY technology that touches on performance or optimization on the internet, no matter the relationship. But is this true for all sites? Not surprisingly the answer is “maybe.” I won’t get into the heart of how they conducted their testing, but I will hasten a guess that you probably don’t have the same systems or software in place to measure this result – or at least haven’t until now. Revenue attribution has been around for a long time in a number of industries and it’s surprising that it hasn’t really been a force in the eCommerce realm until recently. The Internet can allow you to measure performance from each of your users, segment users into buckets, look at revenue, and so forth, but until recently there has not been a way to look at forward predictions and estimate how changes may affect site revenue. The nuu:bit Revenue Analytics has helped customers recover over $1BILLION in revenue losses and save millions in technology costs by focusing in on the simple changes or areas where performance was actually having a negative impact on revenue. You can split out revenue recovery by platform, device, page type, and so forth. As a great example, we have spoken with site owners who have put most of the emphasis on the performance of their homepage, but fully neglect the performance of department or product description pages, which cause millions of losses per month. E-commerce companies often time achieve a fantastic return on investment improving product descriptions rather than home pages since it’s the product page that is the most important in the buying journey versus the homepage. Once you understand where revenue is falling out of your journey, you can focus on where you need to provide a curative action, which we can help with as well through our integrated CDN and Mobile optimization platform.