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• 7 Fintech Marketing Strategies to Maximise Profits in 2024

  24 juillet 2024, par Erin

  Fintech investment skyrocketed in 2021, but funding tanked in the following two years. A -63% decline in fintech investment in 2023 saw the worst year in funding since 2017. Luckily, the correction quickly floored, and the fintech industry will recover in 2024, but companies will have to work much harder to secure funds.

  F-Prime’s The 2024 State of Fintech Report called 2023 the year of “regulation on, risk off” amid market pressures and regulatory scrutiny. Funding is rising again, but investors want regulatory compliance and stronger growth performance from fintech ventures.

  Here are seven fintech marketing strategies to generate the growth investors seek in 2024.

  Top fintech marketing challenges in 2024

  Following the worst global investment run since 2017 in 2023, fintech marketers need to readjust their goals to adapt to the current market challenges. The fintech honeymoon is over for Wall Street with regulator scrutiny, closures, and a distinct lack of profitability giving investors cold feet.

  Here are the biggest challenges fintech marketers face in 2024 :

  • Market correction : With fewer rounds and longer times between them, securing funds is a major challenge for fintech businesses. F-Prime’s The 2024 State of Fintech Report warns of “a high probability of significant shutdowns in 2024 and 2025,” highlighting the importance of allocating resources and budgets effectively.
  • Contraction : Aside from VC funding decreasing by 64% in 2023, the payments category now attracts a large majority of fintech investment, meaning there’s a smaller share from a smaller pot to go around for everyone else.
  • Competition : The biggest names in finance have navigated heavy disruption from startups and, for the most part, emerged stronger than ever. Meanwhile, fintech is no longer Wall Street’s hottest commodity as investors turn their attention to AI.
  • Regulations : Regulatory scrutiny of fintech intensified in 2023 – particularly in the US – contributing to the “regulation on, risk off” summary of F-Prime’s report.
  • Investor scrutiny : With market and industry challenges intensifying, investors are putting their money behind “safer” ventures that demonstrate real, sustainable profitability, not short-term growth.
  • Customer loyalty : Even in traditional baking and finance, switching is surging as customers seek providers who better meet their needs. To achieve the sustainable growth investors are looking for, fintech startups need to know their ideal customer profile (ICP), tailor their products/services and fintech marketing campaigns to them, and retain them throughout the customer lifecycle.

  

  The good news for fintech marketers is that the market correction is leveling out in 2024. In The 2024 State of Fintech Report, F-Prime says that “heading into 2024, we see the fintech market amid a rebound,” while McKinsey expects fintech revenue to grow “almost three times faster than those in the traditional banking sector between 2023 and 2028.”

  Winning back investor confidence won’t be easy, though. F-Prime acknowledges that investors are prioritising high-performance fintech ventures, particularly those with high gross margins. Fintech marketers need to abandon the growth-at-all-costs mindset and switch to a data-driven optimisation, growth and revenue system.

  7 fintech marketing strategies

  Given the current state of the fintech industry and relatively low levels of investor confidence, fintech marketers’ priority is building a new culture of sustainable profit. This starts with rethinking priorities and switching up the marketing goals to reflect longer-term ambitions.

  So, here are the fintech marketing strategies that matter most in 2024.

  1. Optimise for profitability over growth at all costs

  To progress from the growth-at-all-cost mindset, fintech marketers need to optimise for different KPIs. Instead of flexing metrics like customer growth rate, fintech companies need to take a more balanced approach to measuring sustainable profitability.

  This means holding on to existing customers – and maximising their value – while they acquire new customers. It also means that, instead of trying to make everyone a target customer, you concentrate on targeting the most valuable prospects, even if it results in a smaller overall user base.

  Optimising for profitability starts with putting vanity metrics in their place and pinpointing the KPIs that represent valuable business growth :

  • Gross profit margin
  • Revenue growth rate
  • Cash flow
  • Monthly active user growth (qualify “active” as completing a transaction)
  • Customer acquisition cost
  • Customer retention rate
  • Customer lifetime value
  • Avg. revenue per user
  • Avg. transactions per month
  • Avg. transaction value

  With a more focused acquisition strategy, you can feed these insights into every company level. For example, you can prioritise customer engagement, revenue, retention, and customer service in product development and customer experience (CX).

  To ensure all marketing efforts are pulling towards these KPIs, you need an attribution system that accurately measures the contribution of each channel.

  Marketing attribution (aka multi-touch attribution) should be used to measure every touchpoint in the customer journey and accurately credit them for driving revenue. This helps you allocate the correct budget to the channels and campaigns, adding real value to the business (e.g., social media marketing vs content marketing).

  Example : Mastercard helps a digital bank acquire 10 million high-value customers

  For example, Mastercard helped a digital bank in Latin America achieve sustainable growth beyond customer acquisition. The fintech company wanted to increase revenue through targeted acquisition and profitable engagement metrics.

  Strategies included :

  • A more targeted acquisition strategy for high-value customers
  • Increasing avg. spend per customer
  • Reducing acquisition cost
  • Customer retention

  As a result, Mastercard’s advisors helped this fintech company acquire 10 million new customers in two years. More importantly, they increased customer spending by 28% while reducing acquisition costs by 13%, creating a more sustainable and profitable growth model.

  2. Use web and app analytics to remotivate users before they disengage

  Engagement is the key to customer retention and lifetime value. To prevent valuable customers from disengaging, you need to intervene when they show early signs of losing interest, but they’re still receptive to your incentivisation tactics (promotions, rewards, milestones, etc.).

  By integrating web and app analytics, you can identify churn patterns and pinpoint the sequences of actions that lead to disengaging. For example, you might determine that customers who only log in once a month, engage with one dashboard, or drop below a certain transaction rate are at high risk for churn.

  Using a tool like Matomo for web and app analytics, you can detect these early signs of disengagement. Once you identify your churn risks, you can create triggers to automatically fire re-engagement campaigns. You can also use CRM and session data to personalize campaigns to directly address the cause of disengagement, e.g., valuable content or incentives to increase transaction rates.

  Example : Dynamic Yield fintech re-engagement case study

  In this Dynamic Yield case study, one leading fintech company uses customer spending patterns to identify those most likely to disengage. The company set up automated campaigns with personalised in-app messaging, offering time-bound incentives to increase transaction rates.

  

  With fully automated re-engagement campaigns, this fintech company increased customer retention through valuable engagement and revenue-driving actions.

  3. Identify the path your most valuable customers take

  Why optimise web experiences for everyone when you can tailor the online journey for your most valuable customers ? Use customer segmentation to identify the shared interests and habits of your most valuable customers. You can learn a lot about customers based on where the pages they visit and the content they engage with before taking action.

  Use these insights to optimise funnels that motivate prospects displaying the same customer behaviours as your most valuable customers.

  Get 20-40% more data with Matomo

  One of the biggest issues with Google Analytics and many similar tools is that they produce inaccurate data due to data sampling. Once you collect a certain amount of data, Google reports estimates instead of giving you complete, accurate insights.

  This means you could be basing important business decisions on inaccurate data. Furthermore, when investors are nervous about the uncertainty surrounding fintech, the last thing they want is inaccurate data.

  Matomo is the reliable, accurate alternative to Google Analytics that uses no data sampling whatsoever. You get 100% access to your web analytics data, so you can base every decision on reliable insights. With Matomo, you can access between 20% and 40% more data compared to Google Analytics.

  

  With Matomo, you can confidently unlock the full picture of your marketing efforts and give potential investors insights they can trust.

  Try Matomo for Free

  Get the web insights you need, without compromising data accuracy.

  Start for free

  No credit card required

  4. Reduce onboarding dropouts with marketing automation

  Onboarding dropouts kill your chance of getting any return on your customer acquisition cost. You also miss out on developing a long-term relationship with users who fail to complete the onboarding process – a hit on immediate ROI and, potentially, long-term profits.

  The onboarding process also defines the first impression for customers and sets a precedent for their ongoing experience.

  An engaging onboarding experience converts more potential customers into active users and sets them up for repeat engagement and valuable actions.

  Example : Maxio reduces onboarding time by 30% with GUIDEcx

  Onboarding optimisation specialists, GUIDEcx helped Maxio cut six weeks off their onboarding times – a 30% reduction.

  

  With a shorter onboarding schedule, more customers are committing to close the deal during kick-off calls. Meanwhile, by increasing automated tasks by 20%, the company has unlocked a 40% increase in capacity, allowing it to handle more customers at any given time and multiplying its capacity to generate revenue.

  5. Increase the value in TTFV with personalisation

  Time to first value (TTFV) is a key metric for onboarding optimisation, but some actions are more valuable than others. By personalising the experience for new users, you can increase the value of their first action, increasing motivation to continue using your fintech product/service.

  The onboarding process is an opportunity to learn more about new customers and deliver the most rewarding user experience for their particular needs.

  Example : Betterment helps users put their money to work right away

  Betterment has implemented a quick, personalised onboarding system instead of the typical email signup process. The app wants to help new customers put their money to work right away, optimising for the first transaction during onboarding itself.

  

  It personalises the experience by prompting new users to choose their goals, set up the right account for them, and select the best portfolio to achieve their goals. They can complete their first investment within a matter of minutes and professional financial advice is only ever a click away.

  Optimise account signups with Matomo

  If you want to create and optimise a signup process like Betterment, you need an analytics system with a complete conversion rate optimisation (CRO) toolkit. 

  

  Matomo includes all the CRO features you need to optimise user experience and increase signups. With heatmaps, session recordings, form analytics, and A/B testing, you can make data-driven decisions with confidence.

  Try Matomo for Free

  Get the web insights you need, without compromising data accuracy.

  Start for free

  No credit card required

  6. Use gamification to drive product engagement

  Gamification can create a more engaging experience and increase motivation for customers to continue using a product. The key is to reward valuable actions, engagement time, goal completions, and the small objectives that build up to bigger achievements.

  Gamification is most effective when used to help individuals achieve goals they’ve set for themselves, rather than the goals of others (e.g., an employer). This helps explain why it’s so valuable to fintech experience and how to implement effective gamification into products and services.

  Example : Credit Karma gamifies personal finance

  Credit Karma helps users improve their credit and build their net worth, subtly gamifying the entire experience.

  

  Users can set their financial goals and link all of their accounts to keep track of their assets in one place. The app helps users “see your wealth grow” with assets, debts, and investments all contributing to their next wealth as one easy-to-track figure.

  

  7. Personalise loyalty programs for retention and CLV

  Loyalty programs tap into similar psychology as gamification to motivate and reward engagement. Typically, the key difference is that – rather than earning rewards for themselves – you directly reward customers for their long-term loyalty.

  That being said, you can implement elements of gamification and personalisation into loyalty programs, too. 

  Example : Bank of America’s Preferred Rewards

  Bank of America’s Preferred Rewards program implements a tiered rewards system that rewards customers for their combined spending, saving, and borrowing activity.

  

  The program incentivises all customer activity with the bank and amplifies the rewards for its most active customers. Customers can also set personal finance goals (e.g., saving for retirement) to see which rewards benefit them the most.

  Conclusion

  Fintech marketing needs to catch up with the new priorities of investors in 2024. The pre-pandemic buzz is over, and investors remain cautious as regulatory scrutiny intensifies, security breaches mount up, and the market limps back into recovery.

  To win investor and consumer trust, fintech companies need to drop the growth-at-all-costs mindset and switch to a marketing philosophy of long-term profitability. This is what investors want in an unstable market, and it’s certainly what customers want from a company that handles their money.

  Unlock the full picture of your marketing efforts with Matomo’s robust features and accurate reporting. Trusted by over 1 million websites, Matomo is chosen for its compliance, accuracy, and powerful features that drive actionable insights and improve decision-making.

   Start your free 21-day trial now. No credit card required.

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• Overcoming Fintech and Finserv’s Biggest Data Analytics Challenges

  13 septembre 2024, par Daniel Crough — Banking and Financial Services, Marketing, Security

  Data powers innovation in financial technology (fintech), from personalized banking services to advanced fraud detection systems. Industry leaders recognize the value of strong security measures and customer privacy. A recent survey highlights this focus, with 72% of finance Chief Risk Officers identifying cybersecurity as their primary concern.

  Beyond cybersecurity, fintech and financial services (finserv) companies are bogged down with massive amounts of data spread throughout disconnected systems. Between this, a complex regulatory landscape and an increasingly tech-savvy and sceptical consumer base, fintech and finserv companies have a lot on their plates.

  How can marketing teams get the information they need while staying focused on compliance and providing customer value ? 

  This article will examine strategies to address common challenges in the finserv and fintech industries. We’ll focus on using appropriate tools, following effective data management practices, and learning from traditional banks’ approaches to similar issues.

  What are the biggest fintech data analytics challenges, and how do they intersect with traditional banking ?

  Recent years have been tough for the fintech industry, especially after the pandemic. This period has brought new hurdles in data analysis and made existing ones more complex. As the market stabilises, both fintech and finserve companies must tackle these evolving data issues.

  Let’s examine some of the most significant data analytics challenges facing the fintech industry, starting with an issue that’s prevalent across the financial sector :

  1. Battling data silos

  In a recent survey by InterSystems, 54% of financial institution leaders said data silos are their biggest barrier to innovation, while 62% said removing silos is their priority data strategy for the next year.

  

  Data silos segregate data repositories across departments, products and other divisions. This is a major issue in traditional banking and something fintech companies should avoid inheriting at all costs.

  Siloed data makes it harder for decision-makers to view business performance with 360-degree clarity. It’s also expensive to maintain and operationalise and can evolve into privacy and data compliance issues if left unchecked.

  To avoid or remove data silos, develop a data governance framework and centralise your data repositories. Next, simplify your analytics stack into as few integrated tools as possible because complex tech stacks are one of the leading causes of data silos.

  Use an analytics system like Matomo that incorporates web analytics, marketing attribution and CRO testing into one toolkit.

  

  Matomo’s support plans help you implement a data system to meet the unique needs of your business and avoid issues like data silos. We also offer data warehouse exporting as a feature to bring all of your web analytics, customer data, support data, etc., into one centralised location.

  Try Matomo for free today, or contact our sales team to discuss support plans.

  2. Compliance with laws and regulations

  A survey by Alloy reveals that 93% of fintech companies find it difficult to meet compliance regulations. The cost of staying compliant tops their list of worries (23%), outranking even the financial hit from fraud (21%) – and this in a year marked by cyber threats.

  

  Data privacy laws are constantly changing, and the landscape varies across global regions, making adherence even more challenging for fintechs and traditional banks operating in multiple markets. 

  In the US market, companies grapple with regulations at both federal and state levels. Here are some of the state-level legislation coming into effect for 2024-2026 :

  • Oregon – Oregon Consumer Privacy Act (July 1, 2024)
  • Florida – Florida Digital Bill of Rights (July 1, 2024)
  • Texas – Texas Data Privacy and Security Act (July 1, 2024)
  • Montana – Montana Consumer Data Privacy Act (October 1, 2024)
  • Delaware – Delaware Personal Privacy Act (January 1, 2025)
  • Iowa – Iowa Consumer Data Protection Act (January 1, 2025)
  • New Jersey – SB 332 (January 15, 2025)
  • Tennessee – Tennessee Information Protection Act (July 1, 2025)
  • Indiana – Indiana Consumer Data Protection Act ( January 1, 2026)

  Other countries are also ramping up regional regulations. For instance, Canada has Quebec’s Act Respecting the Protection of Personal Information in the Private Sector and British Columbia’s Personal Information Protection Act (BC PIPA).

  Ignorance of country- or region-specific laws will not stop companies from suffering the consequences of violating them.

  The only answer is to invest in adherence and manage business growth accordingly. Ultimately, compliance is more affordable than non-compliance – not only in terms of the potential fines but also the potential risks to reputation, consumer trust and customer loyalty.

  This is an expensive lesson that fintech and traditional financial companies have had to learn together. GDPR regulators hit CaixaBank S.A, one of Spain’s largest banks, with multiple multi-million Euro fines, and Klarna Bank AB, a popular Swedish fintech company, for €720,000.

  To avoid similar fates, companies should :

  1. Build solid data systems
  2. Hire compliance experts
  3. Train their teams thoroughly
  4. Choose data analytics tools carefully

  Remember, even popular tools like Google Analytics aren’t automatically safe. Find out how Matomo helps you gather useful insights while sticking to rules like GDPR.

  3. Protecting against data security threats

  Cyber threats are increasing in volume and sophistication, with the financial sector becoming the most breached in 2023.

  

  The cybersecurity risks will only worsen, with WEF estimating annual cybercrime expenses of up to USD $10.5 trillion globally by 2025, up from USD $3 trillion in 2015.

  While technology brings new security solutions, it also amplifies existing risks and creates new ones. A 2024 McKinsey report warns that the risk of data breaches will continue to increase as the financial industry increasingly relies on third-party data tools and cloud computing services unless they simultaneously improve their security posture.

  The reality is that adopting a third-party data system without taking the proper precautions means adopting its security vulnerabilities.

  In 2023, the MOVEit data breach affected companies worldwide, including financial institutions using its file transfer system. One hack created a global data crisis, potentially affecting the customer data of every company using this one software product.

  The McKinsey report emphasises choosing tools wisely. Why ? Because when customer data is compromised, it’s your company that takes the heat, not the tool provider. As the report states :

  “Companies need reliable, insightful metrics and reporting (such as security compliance, risk metrics and vulnerability tracking) to prove to regulators the health of their security capabilities and to manage those capabilities.”

  Don’t put user or customer data in the hands of companies you can’t trust. Work with providers that care about security as much as you do. With Matomo, you own all of your data, ensuring it’s never used for unknown purposes.

  

  4. Protecting users’ privacy

  With security threats increasing, fintech companies and traditional banks must prioritise user privacy protection. Users are also increasingly aware of privacy threats and ready to walk away from companies that lose their trust.

  Cisco’s 2023 Data Privacy Benchmark Study reveals some eye-opening statistics :

  • 94% of companies said their customers wouldn’t buy from them if their data wasn’t protected, and 
  • 95% see privacy as a business necessity, not just a legal requirement.

  Modern financial companies must balance data collection and management with increasing privacy demands. This may sound contradictory for companies reliant on dated practices like third-party cookies, but they need to learn to thrive in a cookieless web as customers move to banks and service providers that have strong data ethics.

  This privacy protection journey starts with implementing web analytics ethically from the very first session.

  

  The most important elements of ethically-sound web analytics in fintech are :

  1. 100% data ownership : Make sure your data isn’t used in other ways by the tools that collect it.
  2. Respecting user privacy : Only collect the data you absolutely need to do your job and avoid personally identifiable information.
  3. Regulatory compliance : Stick with solutions built for compliance to stay out of legal trouble.
  4. Data transparency : Know how your tools use your data and let your customers know how you use it.

  Read our guide to ethical web analytics for more information.

  5. Comparing customer trust across industries 

  While fintech companies are making waves in the financial world, they’re still playing catch-up when it comes to earning customer trust. According to RFI Global, fintech has a consumer trust score of 5.8/10 in 2024, while traditional banking scores 7.6/10.

  

  This trust gap isn’t just about perception – it’s rooted in real issues :

  • Security breaches are making headlines more often.
  • Privacy regulations like GDPR are making consumers more aware of their rights.
  • Some fintech companies are struggling to handle fraud effectively.

  According to the UK’s Payment Systems Regulator, digital banking brands Monzo and Starling had some of the highest fraudulent activity rates in 2022. Yet, Monzo only reimbursed 6% of customers who reported suspicious transactions, compared to 70% for NatWest and 91% for Nationwide.

  So, what can fintech firms do to close this trust gap ?

  • Start with privacy-centric analytics from day one. This shows customers you value their privacy from the get-go.
  • Build and maintain a long-term reputation free of data leaks and privacy issues. One major breach can undo years of trust-building.
  • Learn from traditional banks when it comes to handling issues like fraudulent transactions, identity theft, and data breaches. Prompt, customer-friendly resolutions go a long way.
  • Remember : cutting-edge financial technology doesn’t make up for poor customer care. If your digital bank won’t refund customers who’ve fallen victim to credit card fraud, they’ll likely switch to a traditional bank that will.

  The fintech sector has made strides in innovation, but there’s still work to do in establishing trustworthiness. By focusing on robust security, transparent practices, and excellent customer service, fintech companies can bridge the trust gap and compete more effectively with traditional banks.

  6. Collecting quality data

  Adhering to data privacy regulations, protecting user data and implementing ethical analytics raises another challenge. How can companies do all of these things and still collect reliable, quality data ?

  Google’s answer is using predictive models, but this replaces real data with calculations and guesswork. The worst part is that Google Analytics doesn’t even let you use all of the data you collect in the first place. Instead, it uses something called data sampling once you pass certain thresholds.

  In practice, this means that Google Analytics uses a limited set of your data to calculate reports. We’ve discussed GA4 data sampling at length before, but there are two key problems for companies here :

  1. A sample size that’s too small won’t give you a full representation of your data.
  2. The more visitors that come to your site, the less accurate your reports will become.

  For high-growth companies, data sampling simply can’t keep up. Financial marketers widely recognise the shortcomings of big tech analytics providers. In fact, 80% of them say they’re concerned about data bias from major providers like Google and Meta affecting valuable insights.

  This is precisely why CRO:NYX Digital approached us after discovering Google Analytics wasn’t providing accurate campaign data. We set up an analytics system to suit the company’s needs and tested it alongside Google Analytics for multiple campaigns. In one instance, Google Analytics failed to register 6,837 users in a single day, approximately 9.8% of the total tracked by Matomo.

  In another instance, Google Analytics only tracked 600 visitors over 24 hours, while Matomo recorded nearly 71,000 visitors – an 11,700% discrepancy.

  

  Financial companies need a more reliable, privacy-centric alternative to Google Analytics that captures quality data without putting users at potential risk. This is why we built Matomo and why our customers love having total control and visibility of their data.

  Unlock the full power of fintech data analytics with Matomo

  Fintech companies face many data-related challenges, so compliant web analytics shouldn’t be one of them. 

  With Matomo, you get :

  • An all-in-one solution that handles traditional web analytics, behavioural analytics and more with strong integrations to minimise the likelihood of data siloing
  • Full compliance with GDPR, CCPA, PIPL and more
  • Complete ownership of your data to minimise cybersecurity risks caused by negligent third parties
  • An abundance of ways to protect customer privacy, like IP address anonymisation and respect for DoNotTrack settings
  • The ability to import data from Google Analytics and distance yourself from big tech
  • High-quality data that doesn’t rely on sampling
  • A tool built with financial analytics in mind

  Don’t let big tech companies limit the power of your data with sketchy privacy policies and counterintuitive systems like data sampling. 

  Start your Matomo free trial or request a demo to unlock the full power of fintech data analytics without putting your customers’ personal information at unnecessary risk.

• Consent management platforms : Keys to compliance and user trust

  14 juin, par Joe

  Today’s marketing managers and data analysts face a tricky balancing act : gaining meaningful customer insights while respecting user privacy. Finding ways to navigate the maze of complex privacy regulations while managing consent at scale can be daunting. 

  Consent management platforms (CMPs) offer a solution. They allow companies to collect data ethically, manage user consent efficiently, and comply with privacy regulations like Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

  This guide explains everything you need to know about CMPs : how they function, why they’re essential for data governance, and how they work hand-in-hand with analytics platforms to promote transparency and build trust with users.

  What is a consent management platform (CMP) and what is it for ?

  A consent management platform (CMP) helps organisations collect, organise, and store user consent for personal data processing purposes. In short, it’s a tool that ensures data collection respects user privacy and complies with regulations like the GDPR and CCPA.

  Without a CMP, businesses could face hefty fines and penalties for violating data privacy laws in different parts of the world. This shows how vital these tools are to all modern businesses.

  How do consent management platforms work ?

  CMPs give users a clear and straightforward way to provide explicit consent for data collection. These platforms manage both the technical aspects of consent storage and the user experience on your site or app.

  Here’s a simplified breakdown :

  • Cookie consent banners : The CMP displays a banner whenever a user visits your website. This banner explains the types of personal information collected and for what purpose.
  • User choice : The user can accept or reject cookies and trackers. They can often customise their preferences to choose which specific data types they’re willing to share.
  • Preference storage : The CMP stores the user’s choices. This information helps ensure that you only collect and process the permitted data.
  • Integration with other systems : CMPs integrate with other systems, such as analytics platforms and advertising networks, to ensure that data collection and processing comply with the user’s choices throughout the customer experience.

  

  A key feature of CMPs is their role in shaping privacy policy design. This design encompasses the layout, visual elements, and cues employed to seek user consent.

  A recent study by Karlstad University in Sweden showed that privacy policy design significantly influences user comprehension and willingness to disclose information. In other words, it affects consent rates considerably and is key to enhancing data collection.

  Importance of consent management for compliance

  As the world becomes increasingly interconnected, consent management is taking centre stage. Although it applies to all technologies and systems that gather or handle personal data, few instances are as relevant as smart homes.

  Smart home devices have unique access to our personal spaces and private lives. They represent a unique challenge to consent management since one person is potentially granting access to personal data from themselves and other people who may be inside or around the house.

  A 2023 study by the University College London and the University of Oxford pointed out that clear design principles and granular, contextual permission structures are essential in these situations.

  However, consent management isn’t just best practice. It’s a widespread legal requirement. Not meeting these requirements can result in hefty penalties and reputational damage to your organisation.

  Consent management under GDPR

  The European Union’s GDPR is a data protection law applicable to organisations that process the personal data of individuals residing in the European Economic Area (EEA). It’s based on the principle of opting in.

  The GDPR is one of the strongest data privacy laws globally. For non-compliance, fines can be up to €20 million or 4% of the company’s total global turnover (whichever is higher).

  It’s also one of the most heavily enforced privacy laws. According to enforcementtracker.com, Meta was fined €1.2 billion in 2023, with GDPR fines reaching over €2 billion that year alone. In the UK, the largest GDPR fine is €22.05 million, according to Statista. It pays to comply.

  The GDPR has specific rules around consent, including that it must be :

  • Freely given : Users must not be pressured or coerced.
  • Specific : Must be given for specific data processing purposes.
  • Informed : Users must be provided with clear and concise information.
  • Unambiguous : Permission must be granted through clear and affirmative action, such as checking a box or tapping a button.

  CMPs help you meet these requirements by providing a transparent and user-friendly way to obtain and manage consent.

  Consent management under CCPA

  The CCPA is another privacy protection law for businesses collecting personal information from California residents. It grants Californians the right to know what data is being collected about them, to prevent it from being sold, and to request its deletion.

  CMPs support CCPA compliance by enabling users to exercise their rights and ensuring transparent data collection practices.

  Managing consent under other regulatory frameworks

  In addition to the GDPR and CCPA, numerous other privacy regulations can impact your organisation. These regulations include :

  • The COPPA in the US
  • Brazil’s LGPD
  • Japan’s APPI
  • Canada’s PIPEDA.
  • Australia’s Privacy Act 1988 

  A CMP will help streamline the process by providing a clear, practical framework to ensure you meet all applicable requirements.

  Key features to look for in a CMP

  Choosing the right CMP is crucial for global business.

  Here are some key features to consider :

  Custom banners

  Consent banners are often among users’ first digital interactions with your brand. It should be clear, concise and visually appealing. Look for a CMP that allows you to :

  • Customise the banner’s design to match your website’s branding and aesthetics.
  • Control the banner’s positioning for optimal visibility.

  End-user management tools

  The CMP should also offer a user-friendly interface allowing visitors to grant, manage and withdraw consent.

  This includes customisable banners, granular permissions, and a preference centre. The latter is a dedicated space where users can manage their preferences anytime.

  Integration capabilities with existing systems

  The CMP should integrate with your existing technology stack, including your analytics platform, marketing automation tools and CRM. This integration ensures a smooth workflow and prevents data silos.

  How to select the right CMP for your organisation

  To find the perfect CMP, focus on your specific needs and priorities. Here’s a step-by-step guide to help you make an informed decision :

  Assessing organisational needs and goals

  Start by clearly defining your organisation’s requirements. Consider the following :

  • Types of data collected : What personal data do you collect (for example, cookies, IP addresses, location data) ?
  • Compliance requirements : Which privacy regulations must you comply with (GDPR, CCPA, COPPA) ?
  • Website or app complexity : How complex is your website or app in terms of user interactions and data collection points ?
  • Budget : How much are you willing to invest in a CMP ?

  Comparing features and pricing

  Once you thoroughly understand your needs, you can compare the features and pricing of various CMPs. Look for key features like :

  • Customisable banners
  • Granular options
  • Preference centre
  • Integration with existing systems
  • Analytics and reporting

  Once you’ve shortlisted a few options, compare the pricing and choose the best value for your budget. Take advantage of free trials before committing to a paid plan.

  Checking verified user reviews

  Read user reviews on platforms like G2 or Trustpilot to get an idea of the strengths and weaknesses of different CMPs. Look for reviews from similar organisations regarding size, industry and compliance requirements.

  Integration with a privacy-focused analytics platform

  A consent management platform acts as the bridge between your users and your analytics and marketing teams. It ensures user preferences are communicated to your analytics setup, so data collection and analysis align with their choices and comply with privacy regulations. 

  Finding a consent manager integration that works with your analytics setup is essential for businesses.

  Top five consent management platforms

  The CMP market is pretty competitive, with many players providing excellent solutions. According to Emergen Research, it was valued at $320.9 million in 2021 and is growing at 21.2%.

  Here are five of our top choices 

  1. usercentrics

  usercentrics is a comprehensive CMP with customisable banners, granular consent options and a preference centre.

  

  usercentrics geolocation rulesets page (Source : Usercentrics)

  This Google-certified CMP allows you to create global and regional consent rules to ensure compliance with local regulations like GDPR, CCPA and LGPD. For a smooth implementation, usercentrics provides access to a knowledgeable support team and a dedicated customer success executive.

  It’s worth noting that Usercentrics is the CMP we use here at Matomo. It helps us in our mission to collect and analyse data ethically and with a privacy-first mindset.

  • Key features : Customisable banners, granular permissions, cross-domain and cross-device capabilities, automatic website scans, reporting and analytics.
  • Pricing : Usercentrics offers a free plan and four paid subscription plans from €7 to €50 per month.

  2. Osano

  Osano is a user-friendly CMP focusing on transparency and ease of use.

  

  Osano’s main dashboard (Source : Osano)

  Osano can scan websites for tracking technologies without impacting the user experience.

  • Key features : Customisable banners, multi-language support, granular consent options, a preference centre and access to a knowledgeable team of compliance specialists.
  • Pricing : Osano offers a self-service free plan and a paid plan at $199 per month.

  3. Cookiebot

  Cookiebot is another popular CMP with numerous integration options, including Matomo and other analytics tools. 

  

  Cookiebot consent banner options (Source : Cookiebot)

  • Key features : A cookie scanner, a privacy trigger or button allowing users to change their consent settings, a consent management API and advanced analytics.
  • Pricing : Cookiebot offers a free plan and paid plans ranging from €7 to €50 per month.

  4. CookieYes

  CookieYes is well-suited for small businesses and websites with basic privacy needs. 

  

  CookieYes cookie banner options (Source : CookieYes)

  It offers various features, including multilingual support, geo-targeting, privacy policy generation, and a preference centre. CookieYes also integrates with analytics and CMS tools, making it easy to implement as part of your stack.

  • Key features : Customisable consent banners, granular consent options, preference centre, integration with Matomo, reporting and analytics.
  • Pricing : You can use CookieYes for free or subscribe to one of their three paid plans, which range from $10 to $55 per month.

  5. Tarte au Citron

  Tarte au Citron is an open-source, lightweight, and customisable CMP developed in France.

  

  (Source : Tarte au Citron)

  Its focus is on transparency and user experience. It provides many features free of charge, but many do require some technical knowledge to deploy. There’s also a paid subscription with ongoing support and faster implementation.

  Tarte au Citron integrates with Matomo, which is also open-source. If you’re building an open-source stack for your analytics, Matomo and Tarte au Citron make an excellent pair.

  • Key features : Open-source, customisable consent banners, integration with Matomo, works with over 220 services.
  • Pricing : You can deploy the open-source core for free, but Tarte au Citron offers three paid licenses starting at €190 for one year and reaching €690 for a lifetime license.

  How to implement cookie consent the right way

  Implementing cookie consent requires precision, time and effort. But doing it wrong can result in significant legal penalties and severe reputational damage, eroding user trust and impacting your brand’s standing. Here are the key dos and don’ts of consent :

  

  Provide clear and concise information

  Use plain language that is easy for anyone to understand. Avoid using technical terms or legal jargon that may confuse users.

  Prioritise transparency

  Be upfront about your data collection practices. Clearly state what data you collect, how you use it and who you share it with. Provide links to your privacy and cookie policies for users who want to learn more.

  Offer granular control

  Give users detailed control over as many of their cookie preferences as possible. Allow them to choose which categories of tracking cookies they consent to, such as strictly necessary, performance and marketing cookies.

  Implement user-friendly banners

  Ensure banners are prominently displayed, easy to understand, and use clear and concise language. Also, make sure they’re accessible to all users, including those with disabilities.

  Respect “do not track” settings

  It’s essential to honour users’ choices when they enable their “do not track” browser setting.

  Document consent

  Maintain a record of user consent. This will help you demonstrate compliance with data privacy regulations and provide evidence of user consent in case of an audit or investigation.

  Regularly review and update consent policies

  Review and update your customer consent policies regularly to ensure they comply with evolving data privacy regulations and reflect your current data collection practices.

  Cookie consent pitfalls to avoid

  Here are some common pitfalls to avoid that may lead to legal penalties, loss of user trust or inaccurate analytics :

  • Avoid lengthy and complicated explanations. Overwhelming users with dense legal jargon or overly technical details can lead to consent fatigue and reduce the likelihood of informed consent.
  • Don’t force users to accept all cookies or none. Blanket consent options violate user autonomy and fail to comply with regulations like the GDPR.
  • Don’t make information about your data collection practices hard to find. Hidden or buried privacy policies breed suspicion and erode trust.
  • Avoid pre-checking all cookie consents. Pre-checked boxes imply consent without explicit user action, which is not compliant with GDPR and similar regulations. Users must actively opt in, not out.

  Emerging consent management trends 

  Consent management is constantly evolving and driven by new technologies, regulations, and user expectations. Here are some emerging trends to watch out for in the short term :

  • Increased automation : AI and machine learning are helping automate consent management processes, making them more efficient and effective.
  • Enhanced user experience : CMPs are becoming more user-friendly, focusing on providing an intuitive experience.
  • Privacy-preserving analytics : CMPs are being integrated with privacy-preserving analytics platforms, such as Matomo, to enable organisations to gain insights into user behaviour without compromising privacy.
  • Google Consent Mode : In 2024, Google rolled out Consent Mode v2 to align with the Digital Markets Act. Due to upcoming privacy regulations, more versions may be coming soon.

  The Privacy Governance Report 2024 also highlights the increasing complexity of managing data privacy, with more than four in five privacy professionals taking on additional responsibilities in their existing roles. This trend will likely continue in the coming years as more privacy laws are enacted.

  Addressing upcoming privacy regulations

  Data privacy and user consent requirements continue to emerge and evolve. Businesses must stay informed and adapt their practices accordingly.

  

  In 2025, several new privacy regulations are going into effect, including :

  • New state-level privacy laws in eight US states :
    • Delaware (1 January 2025)
    • Iowa (1 January 2025)
    • Nebraska (1 January 2025)
    • New Hampshire (1 January 2025)
    • New Jersey (15 January 2025)
    • Tennessee (1 July 2025)
    • Minnesota (31 July 2025)
    • Maryland (1 October 2025)
  • The EU’s Artificial Intelligence Act (which will be implemented from 1 August 2024 through 2 August 2026) and other AI-focused regulations.
  • The UK Adequacy Decision Review has a deadline of 27 December 2025.

  Organisations that collect, process or otherwise handle data from Europe and the above-named US states should proactively prepare for these changes by :

  • Conducting regular privacy impact assessments
  • Reviewing consent mechanisms regularly
  • Implementing data minimisation strategies
  • Providing user-friendly privacy controls

  Future-proofing your consent management strategy

  CMPs are essential for managing consent preferences, protecting user privacy, and earning customers’ trust through transparency and ethical data practices.

  When choosing a CMP, you should consider key features such as integration capabilities, customisation options and user-friendly interfaces.

  Integrating a CMP with a privacy-first analytics solution like Matomo allows you to collect and analyse data in a way that’s compliant and respectful of user preferences. This combination helps maintain data integrity while demonstrating a strong commitment to privacy. 

  Start your 21-day free trial today.