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    Time Decay Model

    A time decay model is an evaluative technique that enables businesses to measure the relationship of customer touch points to conversions to determine which drive sales most effectively.

    What Is a Time Decay Model?

    The modern customer journey involves many different channels, pathways, and touch points that — in the best-case scenario — drive conversions. The time decay model is an evaluation that allows businesses to determine which touch point is closest to conversion and measure the success of steps along the conversion path.

    In a time decay model, the business attributes more credits to touch points that are closer in time to a conversion. Consider a customer who first sees a product promotion on Instagram, then heads to a search engine to find more information on that product. The customer then shifts to Facebook to read reviews, then navigates to the brand’s website to purchase the product.

    Here, the time decay model would attribute the most credit (represented as a percentage of the total conversion path) to the website, then “decay” credit from there, with Instagram receiving the least amount of credit.

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