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• What is Behavioural Segmentation and Why is it Important ?

  28 septembre 2023, par Erin — Analytics Tips

  Amidst the dynamic landscape of web analytics, understanding customers has grown increasingly vital for businesses to thrive. While traditional demographic-focused strategies possess merit, they need to uncover the nuanced intricacies of individual online behaviours and preferences. As customer expectations evolve in the digital realm, enterprises must recalibrate their approaches to remain relevant and cultivate enduring digital relationships.

  In this context, the surge of technology and advanced data analysis ushers in a marketing revolution : behavioural segmentation. Businesses can unearth invaluable insights by meticulously scrutinising user actions, preferences and online interactions. These insights lay the foundation for precisely honed, high-performing, personalised campaigns. The era dominated by blanket, catch-all marketing strategies is yielding to an era of surgical precision and tailored engagement. 

  While the insights from user behaviours empower businesses to optimise customer experiences, it’s essential to strike a delicate balance between personalisation and respecting user privacy. Ethical use of behavioural data ensures that the power of segmentation is wielded responsibly and in compliance, safeguarding user trust while enabling businesses to thrive in the digital age.

  What is behavioural segmentation ?

  Behavioural segmentation is a crucial concept in web analytics and marketing. It involves categorising individuals or groups of users based on their online behaviour, actions and interactions with a website. This segmentation method focuses on understanding how users engage with a website, their preferences and their responses to various stimuli. Behavioural segmentation classifies users into distinct segments based on their online activities, such as the pages they visit, the products they view, the actions they take and the time they spend on a site.

  Behavioural segmentation plays a pivotal role in web analytics for several reasons :

  1. Enhanced personalisation :

  Understanding user behaviour enables businesses to personalise online experiences. This aids with delivering tailored content and recommendations to boost conversion, customer loyalty and customer satisfaction.

  2. Improved user experience :

  Behavioural segmentation optimises user interfaces (UI) and navigation by identifying user paths and pain points, enhancing the level of engagement and retention.

  3. Targeted marketing :

  Behavioural segmentation enhances marketing efficiency by tailoring campaigns to user behaviour. This increases the likelihood of interest in specific products or services.

  4. Conversion rate optimisation :

  Analysing behavioural data reveals factors influencing user decisions, enabling website optimisation for a streamlined purchasing process and higher conversion rates.

  5. Data-driven decision-making :

  Behavioural segmentation empowers data-driven decisions. It identifies trends, behavioural patterns and emerging opportunities, facilitating adaptation to changing user preferences and market dynamics.

  6. Ethical considerations :

  Behavioural segmentation provides valuable insights but raises ethical concerns. User data collection and use must prioritise transparency, privacy and responsible handling to protect individuals’ rights.

  The significance of ethical behavioural segmentation will be explored more deeply in a later section, where we will delve into the ethical considerations and best practices for collecting, storing and utilising behavioural data in web analytics. It’s essential to strike a balance between harnessing the power of behavioural segmentation for business benefits and safeguarding user privacy and data rights in the digital age.

  

  Different types of behavioural segments with examples

  1. Visit-based segments : These segments hinge on users’ visit patterns. Analyse visit patterns, compare first-time visitors to returning ones, or compare users landing on specific pages to those landing on others.
     • Example : The real estate website Zillow can analyse how first-time visitors and returning users behave differently. By understanding these patterns, Zillow can customise its website for each group. For example, they can highlight featured listings and provide navigation tips for first-time visitors while offering personalised recommendations and saved search options for returning users. This could enhance user satisfaction and boost the chances of conversion.
  2. Interaction-based segments : Segments can be created based on user interactions like special events or goals completed on the site.
     • Example : Airbnb might use this to understand if users who successfully book accommodations exhibit different behaviours than those who don’t. This insight could guide refinements in the booking process for improved conversion rates.
  3. Campaign-based segments : Beyond tracking visit numbers, delve into usage differences of visitors from specific sources or ad campaigns for deeper insights.
     • Example : Nike might analyse user purchase behaviour from various traffic sources (referral websites, organic, direct, social media and ads). This informs marketing segmentation adjustments, focusing on high-performance channels. It also customises the website experience for different traffic sources, optimising content, promotions and navigation. This data-driven approach could boost user experiences and maximise marketing impact for improved brand engagement and sales conversions.
  4. Ecommerce segments : Separate users based on purchases, even examining the frequency of visits linked to specific products. Segment heavy users versus light users. This helps uncover diverse customer types and browsing behaviours.
     • Example : Amazon could create segments to differentiate between visitors who made purchases and those who didn’t. This segmentation could reveal distinct usage patterns and preferences, aiding Amazon in tailoring its recommendations and product offerings.
  5. Demographic segments : Build segments based on browser language or geographic location, for instance, to comprehend how user attributes influence site interactions.
     • Example : Netflix can create user segments based on demographic factors like geographic location to gain insight into how a visitor’s location can influence content preferences and viewing behaviour. This approach could allow for a more personalised experience.
  6. Technographic segments : Segment users by devices or browsers, revealing variations in site experience and potential platform-specific issues or user attitudes.
     • Example : Google could create segments based on users’ devices (e.g., mobile, desktop) to identify potential issues in rendering its search results. This information could be used to guide Google in providing consistent experiences regardless of device.

  

  The importance of ethical behavioural segmentation

  Respecting user privacy and data protection is crucial. Matomo offers features that align with ethical segmentation practices. These include :

  • Anonymization : Matomo allows for data anonymization, safeguarding individual identities while providing valuable insights.
  • GDPR compliance : Matomo is GDPR compliant, ensuring that user data is handled following European data protection regulations.
  • Data retention and deletion : Matomo enables businesses to set data retention policies and delete user data when it’s no longer needed, reducing the risk of data misuse.
  • Secured data handling : Matomo employs robust security measures to protect user data, reducing the risk of data breaches.

  Real-world examples of ethical behavioural segmentation :

  1. Content publishing : A leading news website could utilise data anonymization tools to ethically monitor user engagement. This approach allows them to optimise content delivery based on reader preferences while ensuring the anonymity and privacy of their target audience.
  2. Non-profit organisations : A charity organisation could embrace granular user control features. This could be used to empower its donors to manage their data preferences, building trust and loyalty among supporters by giving them control over their personal information.

  

  Examples of effective behavioural segmentation

  Companies are constantly using behavioural insights to engage their audiences effectively. In this section, we’ll delve into real-world examples showcasing how top companies use behavioural segmentation to enhance their marketing efforts.

  

  1. Coca-Cola’s behavioural insights for marketing strategy : Coca-Cola employs behavioural segmentation to evaluate its advertising campaigns. Through analysing user engagement across TV commercials, social media promotions and influencer partnerships, Coca-Cola’s marketing team can discover that video ads shared by influencers generate the highest ROI and web traffic.

     This insight guides the reallocation of resources, leading to increased sales and a more effective advertising strategy.

  2. eBay’s custom conversion approach : eBay excels in conversion optimisation through behavioural segmentation. When users abandon carts, eBay’s dynamic system sends personalised email reminders featuring abandoned items and related recommendations tailored to user interests and past purchase decisions.

     This strategy revives sales, elevates conversion rates and sparks engagement. eBay’s adeptness in leveraging behavioural insights transforms user experience, steering a customer journey toward conversion.

  3. Sephora’s data-driven conversion enhancement : Data analysts can use Sephora’s behavioural segmentation strategy to fuel revenue growth through meticulous data analysis. By identifying a dedicated subset of loyal customers who exhibit a consistent preference for premium skincare products, data analysts enable Sephora to customise loyalty programs.

     These personalised rewards programs provide exclusive discounts and early access to luxury skincare releases, resulting in heightened customer engagement and loyalty. The data-driven precision of this approach directly contributes to amplified revenue from this specific customer segment.

  Examples of the do’s and don’ts of behavioural segmentation 

  

  Behavioural segmentation is a powerful marketing and data analysis tool, but its success hinges on ethical and responsible practices. In this section, we will explore real-world examples of the do’s and don’ts of behavioural segmentation, highlighting companies that have excelled in their approach and those that have faced challenges due to lapses in ethical considerations.

  Do’s of behavioural segmentation :

  • Personalised messaging :
    • Example : Spotify
      • Spotify’s success lies in its ability to use behavioural data to curate personalised playlists and user recommendations, enhancing its music streaming experience.
  • Transparency :
    • Example : Basecamp
      • Basecamp’s transparency in sharing how user data is used fosters trust. They openly communicate data practices, ensuring users are informed and comfortable.
  • Anonymization
    • Example : Matomo’s anonymization features
      • Matomo employs anonymization features to protect user identities while providing valuable insights, setting a standard for responsible data handling.
  • Purpose limitation :
    • Example : Proton Mail
      • Proton Mail strictly limits the use of user data to email-related purposes, showcasing the importance of purpose-driven data practices.
  • Dynamic content delivery : 
    • Example : LinkedIn
      • LinkedIn uses behavioural segmentation to dynamically deliver job recommendations, showcasing the potential for relevant content delivery.
  • Data security :
    • Example : Apple
      • Apple’s stringent data security measures protect user information, setting a high bar for safeguarding sensitive data.
  • Adherence to regulatory compliance : 
    • Example : Matomo’s regulatory compliance features
      • Matomo’s regulatory compliance features ensure that businesses using the platform adhere to data protection regulations, further promoting responsible data usage.

  Don’ts of behavioural segmentation :

  • Ignoring changing regulations
    • Example : Equifax
      • Equifax faced major repercussions for neglecting evolving regulations, resulting in a data breach that exposed the sensitive information of millions.
  • Sensitive attributes
    • Example : Twitter
      • Twitter faced criticism for allowing advertisers to target users based on sensitive attributes, sparking concerns about user privacy and data ethics.
  • Data sharing without consent
    • Example : Meta & Cambridge Analytica
      • The Cambridge Analytica scandal involving Meta (formerly Facebook) revealed the consequences of sharing user data without clear consent, leading to a breach of trust.
  • Lack of control
    • Example : Uber
      • Uber faced backlash for its poor data security practices and a lack of control over user data, resulting in a data breach and compromised user information.
  • Don’t be creepy with invasive personalisation
    • Example : Offer Moment
      • Offer Moment’s overly invasive personalisation tactics crossed ethical boundaries, unsettling users and eroding trust.

  These examples are valuable lessons, emphasising the importance of ethical and responsible behavioural segmentation practices to maintain user trust and regulatory compliance in an increasingly data-driven world.

  Continue the conversation

  Diving into customer behaviours, preferences and interactions empowers businesses to forge meaningful connections with their target audience through targeted marketing segmentation strategies. This approach drives growth and fosters exceptional customer experiences, as evident from the various common examples spanning diverse industries.

  In the realm of ethical behavioural segmentation and regulatory compliance, Matomo is a trusted partner. Committed to safeguarding user privacy and data integrity, our advanced web analytics solution empowers your business to harness the power of behavioral segmentation, all while upholding the highest standards of compliance with stringent privacy regulations.

  To gain deeper insight into your visitors and execute impactful marketing campaigns, explore how Matomo can elevate your efforts. Try Matomo free for 21-days, no credit card required. 

• GDPR Compliance Checklist : A Detailed Walkthrough

  14 septembre 2023, par Erin — GDPR

  As digital transformation drives global economies, data has become a valuable currency to businesses of all shapes and sizes. As a result, the complex issue of data privacy is often in the spotlight.

  The General Data Protection Regulation (GDPR) is the key legal framework in the European Union to protect individual privacy and regulate business data handling. 

  Compliance with the GDPR is not just a legal mandate, it’s also good business. An 86% majority of users want more control over their data and 47% of users have switched providers over data privacy concerns.

  To help guide your business decisions around user privacy, this article will cover the key principles of GDPR, including a comprehensive GDPR compliance checklist.

  The key principles and requirements of GDPR

  Before we can translate GDPR’s objectives into practical steps, let’s begin with the defining features and key principles.

  GDPR : An overview

  The GDPR bolsters and unifies data protection standards for everyone within the EU. Enacted in 2018, it represented a seismic shift for companies and public authorities alike in protecting personal information. Its primary objective is to offer greater control to individuals over their data and to hold organisations accountable for its protection.

  GDPR establishes a legal framework that mandates corporate compliance with key principles to ensure user data security, transparency and choice. It sets the terms for your organisation’s privacy practices and the landscape of legal obligations you must navigate in data handling. 

  Key principles of GDPR

  There are seven core principles pivotal to GDPR compliance, which provide a roadmap for ethical and legal data practices.

  

  • Lawfulness, fairness and transparency : This principle demands lawful and fair processing of personal data. Companies should be transparent about their data processing activities, providing clear information in an accessible form.
  • Purpose limitation : Personal data should be collected for explicit, legitimate purposes and not further processed in a way incompatible with those purposes. This demands careful planning of data processing activities.
  • Data minimisation : Companies should only collect personal data that are necessary for their specified purposes, as anything more than this is illegal. This principle emphasises the importance of limiting scope, rather than performing blanket data collection.
  • Accuracy : This principle calls for maintaining data that is accurate, up-to-date and not misleading. Regular internal audits and updates are crucial to following this principle.
  • Storage limitation : Personal data should only be kept for as long as necessary for the purposes for which it was collected. This underscores the need for a detailed retention policy in your GDPR compliance efforts.
  • Integrity and confidentiality : Companies should protect personal data from unauthorised or unlawful processing and accidental loss or damage. Your organisation’s technical security measures play a vital role in this.
  • Accountability : Organisations should be able to demonstrate their compliance with GDPR principles. This underscores the importance of records of processing activities and regular audits as part of your compliance checklist.

  The importance of GDPR compliance for businesses

  Embracing GDPR compliance isn’t merely a matter of avoiding penalties — it’s a commitment to principles that reflect integrity, transparency and respect for personal data. At Matomo, we champion these principles, empowering companies with powerful and compliant web analytics. We make the compliance journey accessible and straightforward, making sure website analytics aligns with legal obligations and ethical practices.

  The implications of non-compliance

  It’s easy to highlight the dramatic fines imposed on tech giants such as Google and Meta. However, it’s essential to recognise that GDPR compliance extends to all companies, including small businesses — for whom even smaller fines can have a significant impact.

  The implications of non-compliance aren’t limited to financial penalties alone, either. Failing to meet obligations can tarnish reputations, erode trust and hinder business activities. Non-compliance could lead to a breach of privacy policy, causing a ripple effect that may be challenging to overcome.

  The potential benefits of being GDPR compliant

  Adhering to GDPR regulations is more than a checkbox on a form — it’s a comprehensive approach to handling personal data responsibly. It fosters trust, opens doors to European customers and builds enduring relationships with individuals whose rights are protected. In fulfilling these obligations and practices, businesses not only meet legal requirements but also foster a culture of ethical conduct and business success.

  Comprehensive GDPR compliance checklist

  Ensuring GDPR compliance may seem like a complex task, but this detailed checklist will simplify your journey. From consent management to data security, we’ve got you covered.

  

  Establish personal data collection and consent management

  When it comes to GDPR compliance, not all consent is created equal. Two distinct forms exist : explicit consent and implied consent. But what exactly sets them apart, and why does it matter to your organisational measures ?

  Explicit consent from users means that the individual has unequivocally agreed to the processing of personal data. It’s an unambiguous agreement, often obtained through a deliberate action like ticking a box. Details are paramount, as the person giving consent must be fully informed about the processing activities.

  • Inform clearly : Use plain language to explain how data will be used and be transparent about processing practices.
  • Obtain active agreement : Use forms or checkboxes (not pre-ticked boxes) to ensure active participation and that you are obtaining explicit user consent.
  • Document it : Keep records of consent, including when and how it was obtained, as a crucial part of your compliance efforts.
  • Facilitate withdrawal : Use consent mechanisms that allow for easy withdrawal of consent for users who decide to opt out.
  • Manage consent forms : Tools like Matomo’s Consent Management Platform can provide accessible forms that not only enhance transparency but also empower individuals, allowing them to feel in control of their details and rights.

  Facilitate data subject rights and access requests

  GDPR emphasises individual rights by empowering users with control over their personal data processing. Here’s a succinct breakdown :

  • Know the rights of individuals : GDPR outlines individual rights such as data access, error rectification, erasure and data portability, allowing individuals to guide how their details are used, processed or shared.
  • Simplify complying with access requests : Companies must respond to access requests efficiently, usually within one month, without undue delay, reflecting organisational measures of respect.
  • Employ ethical and compliant digital analytics : As a leader in ethical web analytics, Matomo subtly aids in compliance efforts, protecting privacy without compromising functionality.

  These practices align with a modern understanding of privacy, emphasising more than legal obligations. By employing Matomo, companies simplify the processing of access requests, which fosters transparency and user control over personal data.

  Implement clear data privacy practices

  Data privacy and consent mechanisms are key tools for compliance. Crafting a comprehensive privacy policy helps protect individuals’ rights and provides integrity in personal data processing. Designing sites and applications with data protection in mind ensures your compliance from the ground-up.

  • Create an easy to understand privacy policy : Create a clear, GDPR-compliant privacy policy that details processing activities, storage limitations and organisational measures, all in plain language. 

  By implementing these steps, companies not only adhere to their legal obligations but also foster an inclusive community that values privacy and ethics. Whether you’re an IT professional or marketer, Matomo’s platform can guide you through the maze of GDPR complexities, inspiring positive change towards responsible data handling.

  Implement data storage limitations and robust security

  Data storage and security are foundational elements of compliance efforts. Companies must foster a proactive approach to preventing data breaches by understanding potential cyberthreats and enforcing appropriate security controls across applications and infrastructures.

  

  • Implement storage limitations : Define limitations on time and scope to avert undue retention and protect personal details.
  • Embrace technical security : Utilise secure processes like encryption, access controls, firewalls and so on, bolstering protection by design.
  • Establish a comprehensive security policy : Align security practices with privacy laws and regulations, including GDPR.
  • React swiftly to personal data breaches : A security breach requires an immediate response, without undue delay, to honour legal obligations and maintain customer trust. Develop a plan for notifying supervisory authorities and affected individuals promptly in the event of a personal data breach.

  Security measures for personal data are about more than just fulfilling legal obligations — they’re about building a safe and ethical digital ecosystem that instils confidence in customers.

  Keep cross-border data transfers in mind

  Cross-border data transfers present a unique challenge, with increased complexity due to varying data privacy laws across regions. You must understand the respective regulations of participating countries and align your compliance practices appropriately to respect all that are relevant to your organisation. 

  For example, data privacy laws in the US are generally more lax than the GDPR so US companies taking on EU customers must hold themselves to a higher standard, with stricter controls placed on their data processing practices.

  • Evaluate third-party services : For companies utilising global networks of third-party services, be sure to select providers that maintain ongoing knowledge and vigilance towards privacy law compliance. Platforms like Matomo that innately prioritise transparency and privacy, have implemented robust security measures, and document transfers diligently are worth considering. 

  Conduct internal audits and compliance checks

  Compliance is not a “one and done” setup, but an ongoing journey requiring regular internal audits. Systems settings can drift over time, and datasets can become increasingly complex as companies scale. Human error happens, too. Audits identify gaps in your compliance efforts to guide actionable improvements. 

  • Conduct regular audits : Stay proactive with internal audits and systematic monitoring, adapting policies to align with privacy laws. Clarity in privacy notices and cookie banners fosters confidence, while regular assessments ensure alignment with GDPR requirements.
  • Ensure transparency : Platforms like Matomo simplify audits, offering valuable insights and support for ethical web analytics and transparency. The right platform can increase visibility and make generating your reports easier. Integrating these processes guarantees GDPR-aligned measures while emphasising data ownership and customer-centric values.
  • Educate and train staff : Engage in ongoing staff education and training on GDPR compliance, privacy policies, and their related responsibilities.

  

  Case study : GDPR compliance in action

  Achieving compliance with the General Data Protection Regulation (GDPR) stands as a paramount concern for businesses worldwide. Both small and large companies have embarked on this journey, implementing measures and revising privacy policies to conform to these regulations.

  Typeform

  Based in Ireland, Typeform, a company dealing with online forms, took GDPR compliance very seriously. Here’s how they achieved it :

  1. Conducting a data protection impact assessment (DPIA) : This vital step helped them assess personal data breach risks and enabled systematic monitoring of potential challenges.
  2. Implementing technical and organisational measures : Security measures such as encryption, access control and drafting a security policy reinforced their personal data processing mechanisms.
  3. Revamping privacy policy : They transformed their privacy policy with accessible, plain language, making it clear and user-friendly.
  4. Appointing a data protection officer (DPO) : This aligned with their core activities and strengthened their compliance efforts.

  The benefits for Typeform were profound :

  • Enhanced customer trust and confidence
  • Reduced risk of fines and penalties
  • Bolstered data security and privacy
  • Improved brand reputation, positioning them favourably among European customers

  Ensuring GDPR Compliance with Matomo Analytics

  Matomo is more than just an analytics platform ; it is a trusted guide in the realm of data privacy. Our mission is to empower users with full data ownership, fostering an inclusive digital community built on trust and transparency. Our suite of features has been meticulously designed to align with GDPR regulations, ensuring that businesses can navigate the complexities of compliance with ease and confidence.

  1. Data Anonymisation

  Matomo’s focus on ethical digital analytics means the platform allows for the anonymisation of user data, ensuring that individual identities remain protected.

  2. Robust GDPR Management

  Beyond just a GDPR Manager, Matomo provides an encompassing framework to streamline compliance activities. From managing user consent to meticulous record-keeping of processing activities, Matomo ensures you are always a step ahead.

  3. User Empowerment with Opt-Out Capabilities

  Matomo respects user choices. The platform offers users an easy way to opt-out of all tracking, giving them control over their data.

  4. First-party Cookies as the Standard

  By using first-party cookies by default, Matomo ensures data remains with the website owner, minimising potential breaches or misuse.

  5. Transparent Data Collection Practices

  Users have the right to know their data. With Matomo, they can view the exact data being collected, reinforcing a transparent relationship between businesses and their users.

  6. Visitor Data Management

  Upon request, Matomo offers capabilities to delete visitor data, aligning with the GDPR’s right to be forgotten.

  7. Data Ownership and Privacy Assurance

  Unlike other web analytics platforms, with Matomo, you retain full ownership of your data and can rest assured that it is not being used for other purposes such as advertising.

  8. IP Anonymisation

  Protecting user location details, Matomo anonymises IP addresses, adding an additional layer of privacy.

  9. Customisable Data Visualisation

  Recognising that not all data is essential, Matomo allows the disabling of visitor logs and profiles, giving businesses the flexibility to decide what data they track.

  By taking a holistic approach to GDPR compliance, Matomo streamlines the processes for you and ensures you follow the legal and ethical best practices.

  

  Start your GDPR compliance journey today

  The global focus on data privacy requires using a GDPR compliance checklist. With 137 countries implementing data protection laws (UN), companies must align with international standards. Compliance, after all, goes beyond avoiding breaches— it’s about upholding privacy and building trust.

  As your trusted guide, Matomo invites you on this GDPR journey. With us, you’ll uphold privacy obligations and manage your processing activities effectively. Compliance isn’t a one-time task but a continuous journey to enhance practices and align with individual rights. Start this vital journey with Matomo today. Try it free for 21-days. No credit card required.

  Disclaimer

  We are not lawyers and don’t claim to be. The information provided here is to help give an introduction to GDPR. We encourage every business and website to take data privacy seriously and discuss these issues with your lawyer if you have any concerns.

• Incrementality Testing : Quick-Start Guide (With Calculations)

  26 mars 2024, par Erin

  How do you know when a campaign is successful ? When you earn more revenue than last month ?

  Maybe.

  But how do you know how much of an impact a certain campaign or channel had on your sales ?

  With marketing attribution, you can determine credit for each sale.

  But if you want a deeper look, you need to understand the incremental impact of each channel and campaign.

  The way you do this ?

  Incrementality testing.

  In this guide, we break down what incrementality is, why it’s important and how to test it so you can double down on the activities driving the most growth.

  What is incrementality ?

  So, what exactly is incrementality ?

  Let’s say you just ran a marketing campaign for a new product. The launch was a success. Breakthrough numbers in your revenue. You used a variety of channels and activities to bring it all together.

  So, you launch a plan for next month’s campaign. But you don’t truly know what moved the needle.

  Did you just hit new highs because your audience is bigger ? And your brand is greater ?

  Or did the recent moves you made make a direct difference ?

  This is incrementality.

  

  Incrementality is growth directly attributed to marketing efforts beyond the overall impact of your brand. By measuring and conducting incrementality testing, you can clearly see how much of a difference each activity or channel truly impacted business growth. 

  What is incrementality testing ?

  Incrementality testing allows marketers to gauge the effectiveness of a marketing tactic or strategy. It tells you if a particular marketing activity had a positive, negative or neutral impact on your business. 

  It also tells you the overall impact it can have on your key performance indicators (KPIs). 

  The result ?

  You can pinpoint the highest-performing moves and incorporate them into your marketing workflows. You also discard marketing strategies with negligible, neutral or even negative impacts. 

  For example, let’s say you think a B2B LinkedIn ads campaign will help you reach your product launch goals. An incrementality test can tell you if the introduction of this campaign will help you get to the desired outcome.

  How incrementality testing works

  Before diving into your testing phase, you must clearly identify your KPIs.

  Here are the top KPIs you should be tracking on your website :

  • Ad impressions
  • Website visits
  • Leads
  • Sales

  The exact KPIs will depend on your marketing goals. You’re ready to move forward once you know your key performance indicators.

  Here’s how incrementality testing works step-by-step :

  1. Define a test and control group

  The first step is to define a test group and control group. 

  • A test group is a segment of your target audience that’s exposed to the marketing campaign. 
  • A control group is a segment that isn’t. 

  Keep in mind that both groups have similar demographics and other relevant characteristics. 

  2. Execute your campaign

  The second step is to run the marketing campaign on the test group. This can be a Facebook ad, LinkedIn ad or email marketing campaign.

  It all depends on your goals and your primary channels.

  3. Measure outcomes

  The third step is to measure the campaign’s impact based on your KPIs. 

  Let’s say a brand wants to see if a certain marketing move increases its leads. The test can tell them the number of email sign-ups with and without the campaign. 

  4. Compare results

  Next, compare the test group results with the control group. The difference in outcomes tells you the impact of that campaign. You can then use this difference to inform your future marketing strategies. 

  With Matomo, you can easily track results from campaigns — like conversions. 

  Our platform lets you quickly see what channels are getting the best results so you can gain insights into incrementality and optimise your strategy.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Why it’s important to conduct incrementality tests

  The digital marketing industry is constantly changing. Marketers need to stay on their toes to keep up. Incrementality tests help you stay on track.

  For example, let’s say you’re selling laptops. You can increase your warranty period to three years to see the impact on sales. An incrementality test will tell you if this move will boost your sales (and by how much).

  Now, let’s dive into the reasons why you need to consistently conduct incrementality tests :

  Determine the right tactics for success

  Identifying the best action to grow your business is a challenge every marketer faces.

  The best way to identify marketing tactics is by conducting incrementality testing. These tactics are bound to work since data back them. As a result, you can optimise your marketing budget and maximise your ROIs. 

  It lets you run multiple tests to identify the most impactful strategy between :

  • An email marketing strategy
  • A social media strategy 
  • A PPC ad

  For instance, an incrementality test might suggest email marketing will be more cost-effective than an ad campaign. What you can do is :

  • Expose the test group to the email marketing campaign and then compare the results with the control group
  • Expose the test group to the ad campaign and then compare its results with the control group

  Then, you can calculate the difference in results between the two marketing campaigns. This lets you focus on the strategy with a better ROI or ROAS potential. 

  Accurate data

  Marketing data is powerful. But getting accurate data can be challenging. With incrementality testing, you get to know the true impact of a marketing campaign. 

  Plus, with this testing strategy, you don’t have to waste your marketing budget. 

  With Matomo, you get 100% accurate data on all website activities. 

  Unlike Google Analytics, Matomo doesn’t rely on inaccurate data sampling — limiting the amount of data analysed.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Get the most out of your marketing investment

  Every business owner wants to maximise their return on investment. The ROI you get mainly depends on the marketing strategy. 

  For instance, email marketing offers an ROI of about 40:1 with some sources even reporting as high as 72:1.

  Incrementality testing helps you make informed investment decisions. With it, you can pinpoint the tactics that are most likely to bring the highest return. You can then focus your resources on them. It also helps you stay away from low-performing strategies. 

  Increase revenue

  It’s safe to say that the goal behind every marketing effort is a revenue boost. The higher your revenue, the more profits you generate. However, for many marketers, it’s an uphill battle. 

  With incrementality testing, you can boost your revenue by focusing your efforts in the right direction. 

  Get more traffic

  Incrementality testing tells you if a particular strategy can help you drive more traffic. You can use it to get more high-quality leads to your website or landing pages and double down on high-traffic strategies to increase those leads.

  How to test incrementality

  

  Developing an implementation plan is crucial to generate accurate insights from an incrementality test. Incrementality testing is like running a science experience. You need to go through several stages. Each stage is important for generating accurate results. 

  Here’s how you test incrementality :

  Define your goals

  Get clarity on what you want to achieve with this campaign. Which KPIs do you want to test ? Is it the return on your overall investment (ROI), return on ad spend (ROAS) or something else ?

  Segment your audience

  Selecting the right audience segment is crucial to getting accurate insights with an incrementality test. Decide the demographics and psychographics of the audience you want to target. Then, divide this audience segment into two sub-parts :

  • Test group (people you’ll expose to the marketing campaign)
  • Control group (people who won’t be exposed to the campaign)

  These groups are a part of the larger segment. This means people in both groups will have similar attributes. 

  Launch the test at the right time

  Before the launch, decide on the length of the test. Ideally, it should be at least one week. Don’t run any other campaigns in this window, as it can interfere with the results. 

  Analyse the data and take action

  Once the campaign is over, measure the results from both groups. Compare the data to identify incremental lift in your selected KPIs. 

  Let’s say you want to see if this campaign can boost your sales. Check to see if the test group responded differently than the control group. If the sales equal your desired outcome, you have a winning strategy. 

  Not all incrementality tests result in a positive incremental lift ; Some can be neutral, indicating that the campaign didn’t have any effect. Some can even indicate a negative lift, which means your core group performed better than the test group. 

  Lastly, take action based on the test findings. 

  Incrementality test examples 

  You can use incrementality testing to identify gaps and growth opportunities in your strategy. 

  Here’s an example :

  Let’s say a company runs an incrementality test on a YouTube marketing strategy for sales. The results indicate that the ROI was only $0.10, as the company makes $1.10 for every $1.00 spent. This alarms the marketing department and helps them optimise the campaign for a higher ROI. 

  Here’s another practical example :

  Let’s say a retail business wanted to test the effectiveness of its ad campaign. So, the retailer optimises its ad campaign after conducting an incrementality test on a test and control group. As a result, they experienced a 34% incremental increase in sales.

  How to calculate incrementality in marketing

  Once you’ve aggregated the data, it’s time to calculate. There are two ways to calculate incrementality :

  Incremental profit 

  The first one is incremental profit. It tells you how much profit you can generate with a strategy (If any). With it, you get the actual value of a marketing campaign. 

  It’s calculated with the following formula :

  Test group profit – control group profit = incremental profit 

  For example, let’s say you’re exposing a test group to a paid ads campaign. And it generates a profit of $3,000. On the other hand, the control group generated a $2,000 profit. 

  In this case, your incremental profit will be $1,000 ($3,000 – $2,000). 

  However, if the paid ads campaign generates a $2,000 profit, the incremental profit would be zero. Essentially, you’re generating the same profit as before, which means the campaign doesn’t work. Similarly, a marketing strategy is no good if it generates lower profits than the control group. 

  Incremental lift

  Incremental lift measures the difference in the conversions you generate with each group. 

  Here’s the formula :

  (Test – Control)/Control x 100 = Lift

  So, let’s say the test group and control group generated 2,000 and 1,000 conversions, respectively. 

  The incremental lift you’ll get from this incrementality test would be :

  (2,000 – 1,000)/1,000 x 100 = 100

  This turns out to be a 100% incremental lift.

  How to track incrementality with Matomo

  Incrementality testing lets you use a practical approach to identify the best marketing path for your business.

  It helps you develop a hyper-focused approach that gives you access to accurate and practical data. 

  With these insights, you can confidently move forward to maximise your ROI since it helps you focus on high-performing tactics. 

  The result is more revenue and profit for your business. 

  Plus, all you need to do is identify your target audience, divide them into two groups and run your test. Then, the results will be compared to determine if the marketing strategy offers any value. 

  Conducting incrementality tests may take time and expertise. 

  But, thanks to Matomo, you can leverage accurate insights for your incrementality tests to ensure you make the right decisions to grow your business.

  See for yourself why over 1 million websites choose Matomo. Try it free for 21-days now. No credit card required.

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