Glossaries
Position Based Model
What is a Position Based Model in Growth Hacking?
A Position Based Model is an attribution model in growth hacking that assigns credit to different touchpoints in a customer's journey, giving more weight to the first and last interactions while distributing the remaining credit among the middle touchpoints.
Synonyms: U-shaped model, Multi-touch attribution model, 40-20-40 model
How Position Based Model Works in Growth Hacking
The Position Based Model, also known as the U-shaped model, typically assigns 40% credit to both the first and last touchpoints in a customer's journey, with the remaining 20% distributed evenly among the middle interactions. This model recognizes the importance of initial awareness and final conversion while still acknowledging the role of nurturing touchpoints.
Why Position Based Model is Important for Growth Hackers
- Balanced Attribution: It provides a more balanced view of the customer journey compared to single-touch models.
- Optimization Insights: Helps identify which channels are most effective for initiating interest and closing sales.
- Resource Allocation: Enables better budget distribution across various marketing channels.
- Customer Journey Understanding: Offers insights into the full path to conversion, not just the beginning or end.
Examples of Position Based Model in Action
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E-commerce: A customer clicks on a Facebook ad (first touch, 40%), then visits the website twice via organic search (10% each), and finally converts through an email campaign (last touch, 40%).
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B2B Software: A lead discovers the product through a blog post (40%), attends a webinar (10%), downloads a whitepaper (10%), and ultimately converts after a demo (40%).
Frequently Asked Questions
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Question 1: How does the Position Based Model differ from other attribution models? Answer: Unlike single-touch models (e.g., first or last click), the Position Based Model considers multiple touchpoints, giving more weight to the first and last interactions while still valuing middle touchpoints.
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Question 2: Can the credit distribution in a Position Based Model be customized? Answer: Yes, while the standard is 40/20/40, growth hackers can adjust these percentages based on their specific business needs and customer journey insights.
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Question 3: Is the Position Based Model suitable for all types of businesses? Answer: It's particularly useful for businesses with longer, multi-touch customer journeys, but may be less relevant for those with very short conversion paths.