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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.

    A woman surrounded by doors shaped like heads of different

    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.
    A group of consumers split into different segments based on their behaviour

    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.
    Person in a suit holding a red funnel that has data flowing through it into a file

    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.

    A woman standing in front of a pie chart pointing to the top right-hand section of customers in that segment
    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 

    Happy woman surrounded by icons of things and activities she enjoys

    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. 

  • How to Use Analytics & Reports for Marketing, Sales & More

    28 septembre 2023, par Erin — Analytics Tips

    By now, most professionals know they should be using analytics and reports to make better business decisions. Blogs and thought leaders talk about it all the time. But most sources don’t tell you how to use analytics and reports. So marketers, salespeople and others either skim whatever reports they come across or give up on making data-driven decisions entirely. 

    But it doesn’t have to be this way.

    In this article, we’ll cover what analytics and reports are, how they differ and give you examples of each. Then, we’ll explain how clean data comes into play and how marketing, sales, and user experience teams can use reports and analytics to uncover actionable insights.

    What’s the difference between analytics & reports ? 

    Many people speak of reports and analytics as if the terms are interchangeable, but they have two distinct meanings.

    A report is a collection of data presented in one place. By tracking key metrics and providing numbers, reports tell you what is happening in your business. Analytics is the study of data and the process of generating insights from data. Both rely on data and are essential for understanding and improving your business results.

    https://docs.google.com/document/d/1teSgciAq0vi2oXtq_I2_n6Cv89kPi0gBF1l0zve1L2Q/edit

    A science experiment is a helpful analogy for how reporting and analytics work together. To conduct an experiment, scientists collect data and results and compile a report of what happened. But the process doesn’t stop there. After generating a data report, scientists analyse the data and try to understand the why behind the results.

    In a business context, you collect and organise data in reports. With analytics, you then use those reports and their data to draw conclusions about what works and what doesn’t.

    Reports examples 

    Reports are a valuable tool for just about any part of your business, from sales to finance to human resources. For example, your finance team might collect data about spending and use it to create a report. It might show how much you spend on employee compensation, real estate, raw materials and shipping.

    On the other hand, your marketing team might benefit from a report on lead sources. This would mean collecting data on where your sales leads come from (social media, email, organic search, etc.). You could collect and present lead source data over time for a more in-depth report. This shows which sources are becoming more effective over time. With advanced tools, you can create detailed, custom reports that include multiple factors, such as time, geographical location and device type.

    Analytics examples 

    Because analytics requires looking at and drawing insights from data and reports to collect and present data, analytics often begins by studying reports. 

    In our example of a report on lead sources, an analytics professional might study the report and notice that webinars are an important source of leads. To better understand this, they might look closely at the number of leads acquired compared to how often webinars occur. If they notice that the number of webinar leads has been growing, they might conclude that the business should invest in more webinars to generate more leads. This is just one kind of insight analytics can provide.

    For another example, your human resources team might study a report on employee retention. After analysing the data, they could discover valuable insights, such as which teams have the highest turnover rate. Further analysis might help them uncover why certain teams fail to keep employees and what they can do to solve the problem.

    The importance of clean data 

    Both analytics and reporting rely on data, so it’s essential your data is clean. Clean data means you’ve audited your data, removed inaccuracies and duplicate entries, and corrected mislabelled data or errors. Basically, you want to ensure that each piece of information you’re using for reports and analytics is accurate and organised correctly.

    If your data isn’t clean and accurate, neither will your reports be. And making business decisions based on bad data can come at a considerable cost. Inaccurate data might lead you to invest in a channel that appears more valuable than it actually is. Or it could cause you to overlook opportunities for growth. Moreover, poor data maintenance and the poor insight it provides will lead your team to have less trust in your reports and analytics team.

    The simplest way to maintain clean data is to be meticulous when inputting or transferring data. This can be as simple as ensuring that your sales team fills in every field of an account record. When you need to import or transfer data from other sources, you need to perform quality assurance (QA) checks to make sure data is appropriately labelled and organised. 

    Another way to maintain clean data is by avoiding cookies. Most web visitors reject cookie consent banners. When this happens, analysts and marketers don’t get data on these visitors and only see the percentage of users who accept tracking. This means they decide on a smaller sample size, leading to poor or inaccurate data. These banners also create a poor user experience and annoy web visitors.

    Matomo can be configured to run cookieless — which, in most countries, means you don’t need to have an annoying cookie consent screen on your site. This way, you can get more accurate data and create a better user experience.

    Marketing analytics and reports 

    Analytics and reporting help you measure and improve the effectiveness of your marketing efforts. They help you learn what’s working and what you should invest more time and money into. And bolstering the effectiveness of your marketing will create more opportunities for sales.

    One common area where marketing teams use analytics and reports is to understand and improve their keyword rankings and search engine optimization. They use web analytics platforms like Matomo to report on how their website performs for specific keywords. Insights from these reports are then used to inform changes to the website and the development of new content.

    As we mentioned above, marketing teams often use reports on lead sources to understand how their prospects and customers are learning about the brand. They might analyse their lead sources to better understand their audience. 

    For example, if your company finds that you receive a lot of leads from LinkedIn, you might decide to study the content you post there and how it differs from other platforms. You could apply a similar content approach to other channels to see if it increases lead generation. You can then study reporting on how lead source data changes after you change content strategies. This is one example of how analysing a report can lead to marketing experimentation. 

    Email and paid advertising are also marketing channels that can be optimised with reports and analysis. By studying the data around what emails and ads your audience clicks on, you can draw insights into what topics and messaging resonate with your customers.

    Marketing teams often use A/B testing to learn about audience preferences. In an A/B test, you can test two landing page versions, such as two different types of call-to-action (CTA) buttons. Matomo will generate a report showing how many people clicked each version. From those results, you may draw an insight into the design your audience prefers.

    Sales analytics and reports 

    Sales analytics and reports are used to help teams close more deals and sell more efficiently. They also help businesses understand their revenue, set goals, and optimise sales processes. And understanding your sales and revenue allows you to plan for the future.

    One of the keys to building a successful sales strategy and team is understanding your sales cycle. That’s why it’s so important for companies to analyse their lead and sales data. For business-to-business (B2B) companies in particular, the sales cycle can be a long process. But you can use reporting and analytics to learn about the stages of the buying cycle, including how long they take and how many leads proceed to the next step.

    Analysing lead and customer data also allows you to gain insights into who your customers are. With detailed account records, you can track where your customers are, what industries they come from, what their role is and how much they spend. While you can use reports to gather customer data, you also have to use analysis and qualitative information in order to build buyer personas. 

    Many sales teams use past individual and business performance to understand revenue trends. For instance, you might study historical data reports to learn how seasonality affects your revenue. If you dive deeper, you might find that seasonal trends may depend on the country where your customers live. 

    Sales rep, money and clock

    Conversely, it’s also important to analyse what internal variables are affecting revenue. You can use revenue reports to identify your top-performing sales associates. You can then try to expand and replicate that success. While sales is a field often driven by personal relationships and conversations, many types of reports allow you to learn about and improve the process.

    Website and user behaviour analytics and reports 

    More and more, businesses view their websites as an experience and user behaviour as an important part of their business. And just like sales and marketing, reporting and analytics help you better understand and optimise your web experience. 

    Many web and user behaviour metrics, like traffic source, have important implications for marketing. For example, page traffic and user flows can provide valuable insights into what your customers are interested in. This can then drive future content development and marketing campaigns.

    You can also learn about how your users navigate and use your website. A robust web analytics tool, like Matomo, can supply user session recordings and visitor tracking. For example, you could study which pages a particular user visits. But Matomo also has a feature called Transitions that provides visual reports showing where a particular page’s traffic comes from and where visitors tend to go afterward. 

    As you consider why people might be leaving your website, site performance is another important area for reporting. Most users are accustomed to near-instantaneous web experiences, so it’s worth monitoring your page load time and looking out for backend delays. In today’s world, your website experience is part of what you’re selling to customers. Don’t miss out on opportunities to impress and delight them.

    Dive into your data

    Reporting and analytics can seem like mysterious buzzwords we’re all supposed to understand already. But, like anything else, they require definitions and meaningful examples. When you dig into the topic, though, the applications for reporting and analytics are endless.

    Use these examples to identify how you can use analytics and reports in your role and department to achieve better results, whether that means higher quality leads, bigger deal size or a better user experience.

    To see how Matomo can collect accurate and reliable data and turn it into in-depth analytics and reports, start a free 21-day trial. No credit card required.

  • Server Move For multimedia.cx

    1er août 2014, par Multimedia Mike — General

    I made a big change to multimedia.cx last week : I moved hosting from a shared web hosting plan that I had been using for 10 years to a dedicated virtual private server (VPS). In short, I now have no one to blame but myself for any server problems I experience from here on out.

    The tipping point occurred a few months ago when my game music search engine kept breaking regardless of what technology I was using. First, I had an admittedly odd C-based CGI solution which broke due to mysterious binary compatibility issues, the sort that are bound to occur when trying to make a Linux binary run on heterogeneous distributions. The second solution was an SQLite-based solution. Like the first solution, this worked great until it didn’t work anymore. Something else mysteriously broke vis-à-vis PHP and SQLite on my server. I started investigating a MySQL-based full text search solution but couldn’t make it work, and decided that I shouldn’t have to either.

    Ironically, just before I finished this entire move operation, I noticed that my SQLite-based FTS solution was working again on the old shared host. I’m not sure when that problem went away. No matter, I had already thrown the switch.

    How Hard Could It Be ?
    We all have thresholds for the type of chores we’re willing to put up with and which we’d rather pay someone else to perform. For the past 10 years, I felt that administering a website’s underlying software is something that I would rather pay someone else to worry about. To be fair, 10 years ago, I don’t think VPSs were a thing, or at least a viable thing in the consumer space, and I wouldn’t have been competent enough to properly administer one. Though I would have been a full-time Linux user for 5 years at that point, I was still the type to build all of my own packages from source (I may have still been running Linux From Scratch 10 years ago) which might not be the most tractable solution for server stability.

    These days, VPSs are a much more affordable option (easily competitive with shared web hosting). I also realized I know exactly how to install and configure all the software that runs the main components of the various multimedia.cx sites, having done it on local setups just to ensure that my automated backups would actually be useful in the event of catastrophe.

    All I needed was the will to do it.

    The Switchover Process
    Here’s the rough plan :

    • Investigate options for both VPS providers and mail hosts– I might be willing to run a web server but NOT a mail server
    • Start plotting several months in advance of my yearly shared hosting renewal date
    • Screw around for several months, playing video games and generally finding reasons to put off the move
    • Panic when realizing there are only a few days left before the yearly renewal comes due

    So that’s the planning phase. BTW, I chose Digital Ocean for VPS and Zoho for email hosting. Here’s the execution phase I did last week :

    • Register with Digital Ocean and set up DNS entries to point to the old shared host for the time being
    • Once the D-O DNS servers respond correctly using a manual ‘dig’ command, use their servers as the authoritative ones for multimedia.cx
    • Create a new Droplet (D-O VPS), install all the right software, move the databases, upload the files ; and exhaustively document each step, gotcha, and pitfall ; treat a VPS as necessarily disposable and have an eye towards iterating the process with a new VPS
    • Use /etc/hosts on a local machine to point DNS to the new server and verify that each site is working correctly
    • After everything looks all right, update the DNS records to point to the new server

    Finally, flip the switch on the MX record by pointing it to the new email provider.

    Improvements and Problems
    Hosting on Digital Ocean is quite amazing so far. Maybe it’s the SSDs. Whatever it is, all the sites are performing far better than on the old shared web host. People who edit the MultimediaWiki report that changes get saved in less than the 10 or so seconds required on the old server.

    Again, all problems are now my problems. A sore spot with the shared web host was general poor performance. The hosting company would sometimes complain that my sites were using too much CPU. I would have loved to try to optimize things. However, the cPanel interface found on many shared hosts don’t give you a great deal of data for debugging performance problems. However, same sites, same software, same load on the VPS is considerably more performant.

    Problem : I’ve already had the MySQL database die due to a spike in usage. I had to manually restart it. I was considering a cron-based solution to check if the server is running and restart it if not. In response to my analysis that my databases are mostly read and not often modified, so db crashes shouldn’t be too disastrous, a friend helpfully reminded me that, “You would not make a good sysadmin with attitudes like ‘an occasional crash is okay’.”

    To this end, I am planning to migrate the database server to a separate VPS. This is a strategy that even Digital Ocean recommends. I’m hoping that the MySQL server isn’t subject to such memory spikes, but I’ll continue to monitor it after I set it up.

    Overall, the server continues to get modest amounts of traffic. I predict it will remain that way unless Dark Shikari resurrects the x264dev blog. The biggest spike that multimedia.cx ever saw was when Steve Jobs linked to this WebM post.

    Dropped Sites
    There are a bunch of subdomains I dropped because I hadn’t done anything with them for years and I doubt anyone will notice they’re gone. One notable section that I decided to drop is the samples.mplayerhq.hu archive. It will live on, but it will be hosted by samples.ffmpeg.org, which had a full mirror anyway. The lower-end VPS instances don’t have the 53 GB necessary.

    Going Forward
    Here’s to another 10 years of multimedia.cx, even if multimedia isn’t as exciting as it was 10 years ago (personal opinion ; I’ll have another post on this later). But at least I can get working on some other projects now that this is done. For the past 4 months or so, whenever I think of doing some other project, I always remembered that this server move took priority over everything else.