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Top 5 Customer Segmentation Software in 2024

12 March 2024, by Erin
In marketing, we all know the importance of reaching the right customer with the right message at the right time. That’s how you cut through the noise.

For that, you need data on your customers — even though gathering the data is not enough. You can have all the data worldwide, but that raises an ethical responsibility and the need to make sense of it.

Enter customer segmentation software — the answer to delivering personalised customer experiences at scale.

This article lists some of the best customer segmentation tools currently in the market.

We’ll also go over the benefits of using such tools and how you can choose the best one for your business.

Let’s get started!

What is customer segmentation software?

Customer segmentation software is a tool that helps businesses analyse customer data and group them based on common characteristics like age, income, and buying habits.

The main goal of customer segmentation is to gain deeper insights into customer behaviours and preferences. This helps create targeted marketing and product strategies that fit each group and makes it easier to predict how customers will behave in the future.
Benefits of a customer segmentation software

Understanding your customers is the cornerstone of effective marketing, and customer segmentation software plays a pivotal role in this endeavour.

You can deliver more targeted and relevant marketing campaigns by dividing your audience into distinct groups based on shared characteristics.

Specifically, here are the main benefits of using customer segmentation tools:

Understand your audience better: The software helps businesses group customers with common traits to better understand their preferences and behaviour.
Make data-driven decisions: Base your business and marketing decisions on data analytics.
Aid product development: Insights from segmentation analytics can guide the creation of products that meet specific customer group needs.
Allocate your resources efficiently: Focusing on the customer segments that generate the most revenue leads to more effective and strategic use of your marketing resources.
Best customer segmentation software in 2024

In this section, we go over the top customer segmentation tools in 2024.

We’ll look at these tools’ key features and pros and cons.

1. Matomo
Matomo is a comprehensive web analytics tool that merges traditional web analytics, such as tracking pageviews and visitor bounce rates, with more advanced web analytics features for tracking user behaviour.

With robust segmentation features, users can filter website traffic based on criteria such as location and device type, enabling them to analyse specific visitor groups and their behaviour. Users can create custom segments to analyse specific groups of visitors and their behaviour.

Presenting as the ethical alternative to Google Analytics, Matomo emphasises transparency, 100% accurate data, and compliance with privacy laws.

Key features

Heatmaps and Session Recordings: Matomo provides tools that allow businesses to understand website user interactions visually. This insight is crucial for optimising user experience and increasing conversions.
Form Analytics: This feature in Matomo tracks how users interact with website forms, helping businesses understand user behaviour in detail and improve form design and functionality.
User Flow Analysis: The tool tracks the journey of a website’s visitors, highlighting the paths taken and where users drop off. This is key for optimising website structure for better user experience and more conversions.
A/B Testing: Businesses can use Matomo to test different versions of web pages, determining which is more effective in driving conversions.
Conversion Funnels: This feature allows businesses to visualise and optimise the steps customers take toward conversion, identifying areas for improvement.

Pros

Affordability: With plans starting at $19 per month, Matomo is a cost-effective solution for CRO.
Free support: Matomo provides free email support to all Matomo Cloud users.
Open-source benefits: Being open-source, Matomo offers enhanced security, privacy, customisation options, and a supportive community.
Hosting options: Matomo is available either as a self-hosted solution or cloud-hosted.

Cons

Cost for advanced features: Access to advanced features may incur additional costs for Matomo On-Premise users, although the On-Premise solution itself is free.
Technical knowledge required: The self-hosted version of Matomo requires technical knowledge for effective management.

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2. Google Analytics
Google Analytics 4 (GA4) comprehensively understands website and app performance. It focuses on event-based data collection, allowing businesses to understand user interactions across platforms.

Similarly to Matomo, GA4 provides features that allow businesses to segment their audience based on various criteria such as demographics, behaviours, events, and more.

Key features

Event-based tracking: GA4’s shift to an event-based model allows for a flexible and predictive analysis of user behaviour. This includes a detailed view of user interactions on websites and apps.
Machine Learning and Smarter Insights: GA4 uses machine learning to automatically detect trends, estimate purchase probabilities and provide marketing insights.
Google Ads integration: The integration with Google Ads in GA4 enables tracking customer interactions from first ad engagement, providing a holistic view of the customer experience across various platforms.
Customer-centric measurements: GA4 collects data as events, covering a wide range of user interactions and offering a comprehensive view of customer behaviour.
Pathing reports: GA4 introduces new pathing reports, allowing detailed user flow analysis through websites and apps.
Audiences and filters: GA4 allows the creation of audiences based on specific criteria and the application of filters to segment and refine data analysis.

Pros

Integration with various platforms, including Google Ads, enhances cross-platform user journey analysis.
GA4 has a clean reporting interface, making it easier for marketers to identify key trends and data irregularities.
Google Analytics has an active community with an abundance of educational resources available for users.

Cons

Complexity for beginners: The wide range of features and new event-based model might overwhelm users new to analytics tools.
Dependence on machine learning: Reliance on machine learning for insights and predictions may require trust in the tool’s data processing and large volumes of traffic for accuracy.
Transition from UA to GA4: Users familiar with Universal Analytics (UA) might find the transition to GA4 challenging due to differences in features and data models.
3. HubSpot
HubSpot is a marketing and sales software that helps businesses attract visitors and turn them into paying customers.

It supports various business processes, from social media posts to email marketing, sales, and customer service. HubSpot organises and tracks user interactions across different channels, providing a unified and efficient approach to customer relationship management (CRM) and customer segmentation.

Businesses can leverage HubSpot’s customer segmentation through lists, workflows, and smart content.

Key features

Integration capabilities: HubSpot offers over 1,000 integrations in its ecosystem, ensuring seamless connectivity across various marketing, sales, and service tools, which helps maintain data consistency and reduces manual efforts.
Segmentation and personalisation: HubSpot allows businesses to deliver personalised content and interactions based on customer behaviour and preferences, using its robust CRM features and advanced automation capabilities.

Pros

Comprehensive support: HubSpot offers a range of support options, including a knowledge base, real-time chat, and more.
User-friendly interface: The platform is designed for ease of use, ensuring a smooth experience even for less tech-savvy users.
Personalisation capabilities: HubSpot provides personalised marketing, sales and service experiences, leveraging customer data effectively.

Cons

High price point: HubSpot can be expensive, especially as you scale up and require more advanced features.
Steep learning curve: For businesses new to such comprehensive platforms, there might be an initial learning curve to utilise its features effectively.
4. Klaviyo
Klaviyo is a marketing automation software primarily focused on email and SMS messaging for e-commerce businesses. It’s designed to personalise and optimise customer communication.

Klaviyo integrates with e-commerce platforms like Shopify, making it a go-to solution for online stores. Its strength lies in its ability to use customer data to deliver targeted and effective marketing campaigns.

Key features

Email marketing automation: Klaviyo allows users to send automated and personalised emails based on customer behaviour and preferences. This feature is crucial for e-commerce businesses in nurturing leads and maintaining customer engagement.
SMS marketing: It includes SMS messaging capabilities, enabling businesses to engage customers directly through text messages.
Segmentation and personalisation: Klaviyo offers advanced segmentation tools that enable businesses to categorise customers based on their behaviour, preferences and purchase history, facilitating highly targeted marketing efforts.
Integration with e-commerce platforms: Klaviyo integrates with popular e-commerce platforms like Shopify, Magento, and WooCommerce, allowing easy data synchronisation and campaign management.

Pros

Enhanced e-commerce integration: Klaviyo’s deep integration with e-commerce platforms greatly benefits online retailers regarding ease of use and campaign effectiveness.
Advanced segmentation and personalisation: The platform’s strong segmentation capabilities enable businesses to tailor their marketing messages more effectively.
Robust automation features: Klaviyo’s automation tools are powerful and user-friendly, saving time and improving marketing efficiency.

Cons

Cost: Klaviyo can be more expensive than other options in this list, particularly as you scale up and add more contacts.
Complexity for beginners: The platform’s wide range of features and advanced capabilities might overwhelm beginners or small businesses with simpler needs.
5. UserGuiding
UserGuiding is a no-code product adoption tool that lets businesses create in-app user walkthroughs, guides, and checklists to onboard, engage, and retain users.

UserGuiding facilitates customer segmentation by enabling businesses to create segmented onboarding flows, analyse behavioural insights, deliver personalised guidance, and collect feedback tailored to different user segments.

Key features

In-app walkthroughs, guides and checklists: UserGuiding has multiple features that can promote product adoption early in the user journey.
In-app messaging: UserGuiding offers in-app messaging to help users learn more about the product and various ways to get value.
User feedback: UserGuiding allows businesses to gather qualitative feedback to streamline the adoption journey for users.

Pros

User-friendly interface
Customisable onboarding checklists
Retention analytics

Cons

Need for technical expertise to maximise all features
Limited customisation options for less tech-savvy users
What to look for in a customer segmentation software

When choosing a customer segmentation software, choosing the right one for your specific business needs is important.

Here are a few factors to consider when choosing your customer segmentation tool:

Ease of use: Select a tool with an intuitive interface that simplifies navigation. This enhances the user experience, making complex tasks more manageable. Additionally, responsive customer support is crucial. It ensures that issues are promptly resolved, contributing to a smoother operation.
Scalability and flexibility: Your chosen tool should adjust to your needs. A flexible tool like Matomo can adjust to your growing requirements, offering capabilities that evolve as your business expands.
Integration capabilities: The software should seamlessly integrate with your existing systems, such as CRM, marketing, and automation platforms.
Advanced analytics and reporting: Assess the software’s capability to analyse and interpret complex data sets, without relying on machine learning to fill data gaps. A robust tool should provide accurate insights and detailed reports, enabling you to make informed decisions based on real data.
Privacy and security considerations: Data security is paramount in today’s digital landscape. Look for features like data encryption, security storage, and adherence to privacy standards like GDPR and CCPA compliance.
Reviews and recommendations: Before making a decision, consider the reputation of the software providers. Look for reviews and recommendations from other users, especially those in similar industries. This can provide real-world insights into the software’s performance and reliability.
Leverage Matomo’s segmentation capabilities to deliver personalised experiences

Segmentation is the best place to start if you want to deliver personalised customer experiences. There are several customer segmentation software in the market. But they’re not all the same.

In this article, we reviewed the top segmentation tools — based on factors like their user base, features, and ethical data privacy considerations.

Ideally, you want a tool to support your evolving business and segmentation needs. Not to mention one that cares about your customers’ privacy and ensures you stay compliant.

Enter Matomo at the top of the list. You can leverage Matomo’s accurate insights and comprehensive segmentation capabilities without compromising on privacy. Try it free for 21-days. No credit card required.

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How to Increase Conversions With Form Analysis

30 January 2024, by Erin
Forms are one of the most important elements of your website. They are also one of the most difficult elements to analyse and improve.

Unlike a webpage, forms aren’t all that easy to analyse with standard web analytics tools. You need to learn how to conduct form analysis if you want to improve your forms’ conversion rates and increase revenue.

In this article, we’ll explain what form analysis is and why conducting a thorough form analysis is so important.

What is form analysis?

Form analysis is a process that measures the effectiveness of your forms. Form analysis uses several tools and techniques like a form analytics platform, heatmaps, and session recordings to collect user data and understand how visitors behave when filling in forms.

The goal is to improve the design and effectiveness of your forms, reducing abandonment rate and encouraging more users to submit them.

There are plenty of reasons visitors could be having trouble with your forms, from confusing form fields to poor design and lengthy verification processes. Form analytics can help you pinpoint why your form’s conversion rate is so low or why so many users abandon your form halfway through filling it in.

Why is form analysis important?

Website forms have some of the highest bounce rates and abandonments of any website element. By analysing your forms, you can achieve the following outcomes:
Reduce form abandonment

When it’s tough enough to get users to start filling in your form, the last thing you want them to do is abandon it halfway through. But that’s probably what your users are doing more than you’d like to think.

Why are they abandoning it? Even if you’re humble enough to admit you didn’t create the greatest form the world’s ever seen, it can still be incredibly difficult to pin down why users give up on your form.

That’s unless you conduct a form analysis. By analysing metrics and user behaviour, you can pinpoint and rectify the issues that cause users to abandon your form.

Improve the user experience

Best practices will only take you so far. How users behave when filling in a form on your website may be completely different to how they behave on another site. That’s why you need to use form analysis to understand how users behave specifically on your website — and then use that information to optimise the design, layout, and content of the form to better suit them.

If one field is regularly left empty, for example, you can delete it. If users spend several minutes filling out a form with a high abandonment rate, you could shorten it.

The goal isn’t to make the best form ever but to make the best form for your audience.

Increase conversions

Ultimately, form analysis helps you improve your form’s most important metric: conversions. Reducing your abandonment rate will naturally lead to more completions, but so will taking advantage of other optimisation opportunities that only become clear with form analysis. This can include optimisations like:

Moving the form higher up on the page
Shortening the form
Changing the heading and CTAs
Renaming field labels

A thorough form analysis process can ensure your forms generate as many conversions as possible.
Why do users abandon forms?

Are you already suffering from high form abandonment rates? Don’t worry, you’re not alone. Marketers regularly make the same mistakes when creating forms that cause users to give up halfway through completion.

Here are some of the most common reasons for form abandonment:

There are too many steps. If you’re telling users they’ve just completed step 2 of 12, you can bet they won’t bother finishing your form.
They ask for too much information. No one wants to fill out a long form, and often, users won’t have the information on hand if you ask for too much. Just look at the rate left blank from the Unneeded Fields report in the screenshot below:
The form is confusing. Unclear form fields or directions can put users off.
All the fields are free text and time-consuming. Filling out forms with long text fields takes too much time. To speed things up, use dropdown options in the fields, but keep the options to a minimum. This not only helps users finish the form faster but also makes it easier to analyse the data later because it keeps the data format consistent so you can organise the information more efficiently.
Users don’t trust the form. This is a particular problem on checkout pages where users are entering sensitive information.
How to conduct form analysis

You need to collect user behaviour data to effectively analyse your forms. But a lot of traditional website analytics tools won’t have the required functionality.

Matomo is different. Our web analytics solution offers comprehensive web analytics as well as additional features like Heatmaps, Session Recordings, A/B Testing, and Form Analytics to provide all the functionality you need.

Now if you don’t use Matomo, you can try it free for 21 days (no credit card required) to see if it’s the right tool for you.

Whether you use Matomo or not is up to you. But, once you have a suitable tool in place, just follow the steps below to conduct a form analysis.

Check your analytics

Tracking and analysing specific form metrics should be the first place you start. We recommend collecting data on the following metrics:

Form starter rate: the percentage of visitors who actually start to fill in your form
Completion rate: the percentage of visitors who complete the form
Form abandonment rate: the percentage of users who gave up filling in your form
Time spent completing your form: the average length of time users spend on your form

Let’s look at these metrics are in Matomo’s Form Analytics:
The dashboard shows an overview of these metrics over a given period, allowing you to see at a glance whether there are issues you need to rectify.

Next, deep dive into the performance of each form to see things like:

Drop off fields
Unused fields
Entry field
Most corrected fields

You can even use Matomo’s visitor log to see who’s behind every submission.

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Use a heatmap

A heatmap is a colour-based graphical representation of data. A heatmap will show what users to do on your website, including:

How far they scroll
Which buttons they click on
Where they focus their attention

When used on a webpage with a form, you’ll be able to see how often users interact with your form based on the heatmap colour, with warmer colours representing greater engagement levels.

Let’s look at a heatmap in Matomo:
This heatmap is showing us how far down users have scrolled. It’s clear that only 63% of visitors are reaching the point above our call to action to see all features. We might want to consider moving that call to action up in order to get more engagement.

A heatmap is a great way to see whether your form’s placement gets the level of attention you want from visitors and to what extent visitors interact with your field.

Record user sessions

Session replays go even further than heatmaps, recording a real-life user interacting with your site. It’s like looking over a visitor’s shoulder while they use your site.

With Matomo, you can record any sessions where the user takes a certain action (like starting to fill in a form), allowing you to build a rich library of qualitative data.

You can then replay a recorded session at your leisure to understand exactly how users interact with your forms.

Segment users

If you really want to understand how visitors use your forms, then it’s essential to segment your data.

You can segment all Form Analytics reports by over 100 pre-built segments in Matomo.

One way to segment your data is by comparing the average time on form of those who completed the form with those who abandoned it.

If users abandon a form quickly, that could indicate your form is irrelevant to this audience or too long. If users spend a lot of time on the form, however, it’s probably safe to assume that it is relevant but there is something wrong with the form itself.

Looking at the Field Timings report will help you pinpoint which field visitors are spending the most time on and causing frustration.

The Field Timings example report in Matomo above, it’s evident that the “Overview of your needs” field takes up the most time (avg. time spent is 1 min 40s). To improve this, we might want to change it to a dropdown field. This way, users can quickly select options, and if necessary, provide additional details.

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Another way is to segment data by traffic source and compare each source’s conversion rate. This will show whether one traffic source converts better than another or if one source isn’t interested in your form at all.

How to optimise web forms

Want to implement what you’ve learnt from your form analysis? Follow these steps to optimise your existing web forms.

Define your form’s purpose

The first step in optimising your existing web forms is to give a clear and definitive purpose to every single one.

When you have a defined goal, creating a form users will complete is much easier. After all, if you don’t know why people should fill in one of your forms, how would a visitor possibly know?

Take a look at one of our forms below:
The purpose of this form is to get users to sign up for a free trial of our web analytics platform, and every element works towards that goal:

The headline directs the user to take action
The copy explains that it’s a free trial that doesn’t require credit card details
The green call-to-action button reinforces the action and benefit
There is validation to support this under the form – “Trusted on over 1 million websites in over 190+ countries”

Our clear instructions leave users no doubt about why they should fill in the form or what will happen.
Choose the right type of form

You can use several forms on your website, each with different designs, form fields, and goals.

For example:

Registration forms are fairly minimalist and designed to collect the least amount of data possible.
Contact forms are concise so that it’s easy for potential customers to reach your team.
Checkout forms balance a need to collect important data with a streamlined design that doesn’t put users off.
Lead generation forms are compelling and usually include qualifying questions so sales teams can score leads.

Make sure you are using the right type of form to avoid abandonments and other issues. For example, requiring users to fill in a lengthy lead generation-style form when you want them to sign up for a free trial will probably kill your conversion rate.
Test form elements

If your form analysis has shed light on one or two issues, you can use A/B or multivariate testing to trial new elements or designs and see how they compare.

There’s no shortage of elements you can test, including the form’s:

Headline
Placement
Design
CTA button
Colour-scheme
Length
Form fields
Matomo makes it easy to create and run A/B tests on your website’s forms.

Move your form above the fold

One of the simplest ways to optimise your web form is to move it above the fold — that’s the section of the screen users see when they load your page.

Why? Well, the more people who see your form, the more people will fill it in. And when it’s above the fold, users can’t help but see it.

Conclusion

Forms are one of the most important elements on your website, so why not treat them as such and regularly run a thorough form analysis? By doing so, you’ll identify ways to optimise your form, improve the user experience, and improve conversions.

Matomo is the best platform for conducting form analysis. Our combination of web analytics, Form Analytics, Session Recordings, and Heatmaps means you have all the tools you need to learn exactly how visitors interact with your forms.

See just how powerful Matomo’s tools are by starting a free 21-day trial, no credit card required.

Try Matomo for Free

21 day free trial. No credit card required.

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How to Measure Marketing Effectiveness: A Step-by-Step Guide

22 February 2024, by Erin
Are you struggling to prove that your marketing efforts are having a measurable impact on your company’s performance? We get it.

You would think that digital marketing would make it easier to track the effectiveness of your marketing efforts. But in many ways, it’s harder than ever. With so many channels and strategies competing against each other, it can feel impossible to pin down the campaign that caused a conversion.

That leaves you in a tricky spot as a marketing manager. It can be hard to know which campaigns to persevere with and harder still to prove your worth to stakeholders.

Thankfully, there are several strategies you can use to measure the success of your campaigns and put a value on your efforts. So, if you want to learn how you can measure the effectiveness of your marketing, improve the ROI of your efforts and prove your value as an employee, read on.

What is marketing effectiveness?

Marketing effectiveness measures how successful a marketing strategy or campaign is and the extent to which it achieves goals and business objectives.

It’s a growing concern for brands, with research showing that 61.2% say measuring marketing effectiveness has become a more prominent factor in decision-making over the last three years. In other words, it’s becoming critical for marketers to know how to measure their effectiveness.

But it’s getting harder to do so. A combination of factors, including channel fragmentation, increasingly convoluted customer journeys, and the deprecation of third-party cookies, makes it hard for marketing teams to measure marketing performance.

Why you need to measure marketing effectiveness

Imagine ploughing thousands of dollars into a campaign and not being confident that your efforts bore fruit. It’s unthinkable, right? If you care about optimising campaigns and improving your worth as a marketer, measuring marketing effectiveness is necessary.
Optimise marketing campaigns

Do you know how effectively each campaign generates conversions and drives revenue? No? Then, you need to measure marketing effectiveness.

Doing so could also shine a light on ways to improve your campaigns. One paid ad campaign may suffer from a poor return on ad spend caused by high CPCs. Targeting less competitive keywords could dramatically reduce your costs.

Improve ROI

Today, marketing budgets make up almost 10% of a company’s total revenue, up from 6.4% in 2021. With so much revenue at stake, you’ve got to deliver a return on that investment.

Measuring marketing effectiveness can help you identify the campaigns or strategies delivering the highest ROI so you can invest more heavily into them. On the other side of the same coin, you can use the data to strike off any campaigns that aren’t pulling their weight — increasing your ROI even further.

Demonstrate value

Let’s get selfish for a second. Whether you’re an in-house marketing manager or work for an agency, the security of your paycheck depends on your ability to deliver high-ROI campaigns.

Measuring your marketing effectiveness lets you showcase your value to your company and clients. It helps you build stronger relationships that can lead to bigger and better opportunities in the future.

We should take this opportunity to point out that a good tool for measuring marketing effectiveness is equally important. You probably think Google Analytics will do the job, right? But when you start implementing the strategies we discuss below, there’s a good chance you’ll have data quality issues.

That was the case for full-service marketing agency MHP/Team SI, which found Google Analytics’ data sampling severely limited the quantity and quality of insights they could collect. It was only by switching to Matomo, a platform that doesn’t use data sampling, that the agency could deliver the insights its clients needed to grow.

Further reading:

How to check website traffic as accurately as possible
8 best tools to analyse website traffic

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How to measure marketing effectiveness

Measuring marketing effectiveness is not always easy, especially if you have long buying cycles and a lack of good-quality data. Make things as easy as possible by following the steps below:

Know what success looks like

You can’t tell whether your campaigns are effective if you don’t know what you are trying to achieve. That’s why the first step in measuring marketing effectiveness is to set a clear goal.

So, ask yourself what success looks like for each campaign you launch.

Remember, a campaign doesn’t have to drive leads to be considered effective. If all you wanted to do was raise brand awareness or increase organic traffic, you could achieve both goals without recording a single conversion.

We’d wager that’s probably not true for most marketing managers. It’s much more likely you want to achieve something like the following:

Generating 100 new customers
Increasing revenue by 20%
Selling $5,000 of your new product line
Reducing customer churn by 50%
Achieving a return on ad spend of 150%

Conventional goal-setting wisdom applies here. So, ensure your goals are measurable, timely, relevant and achievable.

Track conversions

Setting up conversion tracking in your web analytics platform is vital to measuring marketing effectiveness accurately.

What you count as a conversion event will depend on the goals you’ve set above. It doesn’t have to be a sale, mind you. Downloading an ebook or signing up for a webinar are worthy conversion goals, especially if you know they increase the chances of a customer converting.
Whichever platform you choose, ensure it can meet your current and future needs. This is one of the reasons open-source content management system Concrete CMS opted for Matomo when choosing a new website analytics platform. The flexibility of the Matomo platform gave Concrete CMS the adaptability it needed for future growth.

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Decide on an attribution model

Marketing attribution is a way of measuring the impact of different channels and touchpoints across the customer journey. If you can assign a value to each conversion, you can use a marketing attribution model to quantify the value of your channels and campaigns.

While most web analytics platforms simply credit the last touchpoint, marketing attribution offers a more comprehensive view by considering all interactions along the customer journey. This distinction is important because relying solely on the last touchpoint can lead to skewed insights and misallocation of resources and budget.

By adopting a marketing attribution approach, you can make more informed decisions, optimizing your campaigns and maximizing your return on investment.
There are several different attribution models you can use to give credit to your various campaigns. These include:

First interaction: Gives all the credit to the first channel in the customer journey.
Last interaction: Gives all the credit to the last channel in the customer journey.
Last non-direct attribution: Gives all credit to the final touchpoint in the customer journey, except for direct interactions. In those cases, credit is given to the touchpoint just before the direct one.
Linear attribution: Distributes credit equally across all touchpoints.
Position-based attribution: Attributes 40% credit to the first and last touchpoints and distributes the remaining 20% evenly across all other touchpoints.

Consider carefully which attribution model to use, as this can significantly impact your marketing effectiveness calculation by giving certain campaigns too much credit.
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Analyse KPIs

Tracking KPIs is essential if you want to quantify the impact of your marketing campaigns. But which metrics should you track?

To improve brand awareness or traffic, so-called vanity metrics like sessions, returning visitors, and organic traffic may suffice as KPIs.

However, that’s not going to be the case for most marketers, whose performance is tied to revenue and ROI. If that’s you, put vanity metrics to one side and focus on the following conversion metrics instead:

Conversion rate: the percentage of users who complete a desired action.
Return on ad spend: the revenue earned for every dollar spent on a campaign.
Return on investment: a broader calculation than ROAS, typically calculated across all your marketing efforts.
Customer lifetime value: the total amount a customer will spend throughout their relationship with your company.
Customer acquisition cost: the cost to acquire each customer on average.
Your analytics platform and advertising tools should track most of these KPIs by default. Matomo, for instance, automatically calculates your conversion rate in the Goals report.
How to present your marketing effectiveness

Calculating your marketing effectiveness is one thing, but it’s important to share this information with stakeholders — whether those are executives in your company or your agency’s clients.

Follow the steps below to create an insightful and compelling marketing report:

Set the scene. There’s no guarantee that the people reading your report will know your goals. So, add context at the start of the reporting by spelling out what you are trying to achieve and why.
Select the right data. You don’t want to overwhelm the reader with facts and figures, but you do need to provide hard evidence of your success. Include the KPIs you used to measure your success and show how these have changed over time. You can also support your report with audience insights such as heatmaps or customer surveys.
Tell a story with your presentation. Give your presentation a narrative arc with a beginning, middle, and end. Start with what you want to achieve, describe how you plan to achieve it and end with the results. Support your story with graphs and other visual aids that hold your reader’s attention.
Provide a concise summary. Not everyone will read your presentation cover to cover. With that in mind, provide a summary of your report at the start or end that shows what you achieved and quantifies your marketing effectiveness.
How to improve marketing effectiveness

Don’t settle for simply measuring your marketing effectiveness. Use the following strategies to make future campaigns as effective as possible.

Understand customer behaviour

More effective marketing campaigns start by deeply understanding your customers, who they are, and how they behave. This allows you to take an audience-first approach to your marketing efforts and design campaigns around the unique needs of your customers.

Gather as much first-party data as you can. Surveys, focus groups, and other market research techniques can help you learn more about who your customers are, but don’t disregard the quantitative data you can gather from your web analytics platform.

Using Heatmaps, Session Recordings and behavioural analytics tools, you can learn exactly how customers behave when they land on your site, where they focus their attention and which pages they look at first.
These insights can help you turn an average campaign into an exceptional one. For example, a heatmap may highlight the need to move CTA buttons above the fold to increase conversions. A session recording could pinpoint the problems users have when filling out your website’s forms.

Further reading:

What Is Behavioural Analytics & How Can It Improve Website Performance
9 Form Optimisation Tips to Convert More Visitors
How to Increase Conversions with Form Analysis
Optimise landing pages

Developing a culture of testing and experimentation is a great way to improve your marketing effectiveness. Let’s dive into A/B testing.

By tweaking various elements of your landing pages, you can squeeze every last conversion from your campaigns.
We have a guide on conversion funnel optimisation, which we recommend you check out, but I’ll briefly list some of the optimisations you could test:

Making your CTAs actionable and compelling
Integrating images and videos
Adding testimonials and other forms of social proof
Reducing form fields
Use a different attribution model

It might be that some campaigns, strategies or traffic sources aren’t getting the love they deserve. By changing your attribution model, you can significantly change the perceived effectiveness of certain campaigns.

Let’s say you use a last-touch attribution model, for instance. Only the last channel customers will get credit for each conversion, meaning top-of-the-funnel campaigns like SEO may be deemed less effective than they are.

It’s why you must continually test, tweak and validate your chosen model — and why changing it can be so powerful.

Measure your marketing effectiveness with Matomo

Measuring your marketing effectiveness is hard work. But it’s vital to optimise campaigns, improve your ROI and demonstrate your value.

The good news is that Matomo makes things a lot easier thanks to its comprehensive conversion tracking, attribution modelling capabilities and behavioural insight features like Heatmaps, A/B Testing and Session Recordings.

Take steps today to start measuring (and improving) the effectiveness of your marketing with our 21-day free trial. No credit card required.

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