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• How to increase conversions to meet your business goals

  8 septembre 2020, par Joselyn Khor — Analytics Tips, Marketing
   Through optimizing your messaging, content, or your page layouts, you can increase conversions by getting your visitors through a clear pathway to achieve your business goals.

  Conversion Rate Optimization

  When we talk about optimizing websites to improve and increase conversions, we’re really talking about conversion rate optimization (CRO).

  CRO is the process of learning what the most valuable content/aspect of your website is and how to best optimize this for your visitors to increase its chance to convert. It typically involves generating ideas for elements on your site or app that can be improved, learning which pathways visitors are most likely going to take to conversion and then validating those assumptions through A/B testing and multivariate testing to transform learning into actionable insights.

  Conversion Rate

  The conversion rate is expressed as a % and the goal for any business should be to increase the % of conversions for any given goal e.g. in February a website had 200 newsletter sign-ups from 1,000 visitors on its sign-up page, a conversion rate of 20%. CRO should be used to increase the sign-up rate from 20% to 25%, and then eventually from 25% to 30% and so on.

  CRO cheat sheet

  You need to consider your website or business’ objectives (bigger picture) as well as your website goals (smaller achievements). Whatever the aim of your website, it’s crucial for this to be your starting point. Figure out what you want your website to do and what you want visitors to get from it. When you do that, you’ll know what conversions to focus on.
  

  • Define your business/website’s objectives. Do you want the website to drive sales ? Is the website a hub to raise awareness for a charity ? Do you want to increase readership for your news site ?
  • Define what your conversion goals are. This helps you narrow your focus so you follow a path to meet your overall objectives. By defining these, you clarify for yourself the next actions you should take, such as wanting to funnel users through to a sign up landing page. Then you’ll need to optimize and test your sign up landing page. If conversions are low, then tweak it and measure the results until you find you’ve increased conversion rates.
  • Conversion goals can include :
    • Purchases in your ecommerce store
    • eBook downloads
    • Sign ups to your mailing list
    • Visitors successfully filling in a contact form
  • Figure out what your Key Performance Indicators (KPIs) are and the metrics you need to focus on to achieve them.

  How to increase conversions with Matomo

  1. Set goals
  2. Heatmaps
  3. Session Recordings
  4. A/B test
  5. Form Analytics
  6. Funnels
  7. Behaviour

  1. Set goals

  “Make Sure Goals Are Clearly Understood. To prove the value of an analytics-focused company, any project you take on needs to have clear goals. If you don’t have a goal in mind you’ll fail. Everyone involved in the project needs to be aligned around the goals.”

  A goal is the measure of a successful action that you want your visitors to take. The more goals you track, the more you can learn about behavioural changes as you implement and modify paths that lead to conversions over time.

  

  You’ll understand which channels and campaigns (SEO, PPC, newsletter, blogging etc.) are converting the best for your business, which cities/countries are most popular, what devices are working and how engaged your visitors are before converting. Learn more

  2. Set Heatmaps

  This is vital to show how your visitors are engaging with your website, blog pages, signup and sales pages. If you want to learn how your visitors really engage with your website to increase conversions, Heatmaps lets you see the results visually without any guesswork.

  

  By showing where your visitors try to click, move the mouse or how far down they’re scrolling on each page, you can effortlessly discover how your visitors truly engage with your most important web pages. Rather than guessing, rely on facts to prove if the changes you make actually improve your website or not. Learn more

  How to improve conversion rates with Heatmaps :

  • If you’ve got important information that will sell your service/product or bring you loyal followers, make sure it’s in the hot zones as shown in your heatmaps.
  • Try to rearrange parts of your pages to see if that increases engagement.
  • Make it easy for people to take important actions by having the CTA above-the-fold where 100% of visitors see it. Make sure you don’t clutter this section with too many messages or actions.
  • You can also identify areas to add links as heatmaps shows where people want to click.
  • Find what content is most popular on the page

  3. Session Recordings

  This is a conversion research technique where you learn what your users are trying to do and make sure your website is optimized to give them what they want. With Session Recordings you can playback all the interactions your visitors took on your website, such as clicks, mouse movements, scrolls, resizes, form interactions and page changes in a video. Truly understand how real visitors are using your website and what experiences they’re having.

  Also, by understanding what’s working you’re increasing the usability of your website, Session Recordings allow you to identify problem areas as well as where users are getting stuck. Learn more

  

  How to improve conversion rates with Session Recordings : For example, on a product landing page, you see your visitor highlighting specific words and putting it into search. With this you can observe what they’re trying to find and what they’re actually interested in. As you tweak the page to ensure what the visitor wants can be easily found, you’re taking steps to increase the chance for more conversions.

  4. A/B Testing

  Test anything and test anywhere to increase your conversions. Grow your website by comparing different versions of your landing pages to determine what works best for your users. Subtle tweaks across different versions of your landing pages can have a significant impact on converting incoming traffic.

  

  The changes for each landing page could be :

  • A different headline
  • Less copy vs more copy
  • Different calls-to-action
  • Colour schemes, forms, fonts, links, testimonials,
  • Or, it could be an entirely different page layout altogether.

  The idea is to see if either page A or page B (or C or D) was most successful in getting your visitors to the next step in the conversion funnel. Learn more

  How Matomo used A/B Testing : For our sign up page we tested three different CTAs and found how phrasing words differently could help improve conversion rates. Both “Start improving your websites” and “Start converting more users now” were stronger CTAs and converted 7% more than, “Start my free 30-day trial”.

  5. Form Analytics

  Form Analytics gives you powerful insights into how your visitors interact with your forms (like cart, sign-up and checkout forms).

  

  Online forms can come in thousands of different variations. It’s an area on your website that if not done right, could lead to you missing out on converting a large portion of your visitors. Rely on facts when you change your forms. Learn more

  How to improve conversion rates with Form Analytics : By proving whether your form is doing better when you change it and by how much. This lets you consistently increase form submission rates (conversions) on your website which is crucial to the success of your business.

  6. Funnels

  At a glance you will learn the steps (actions, events and pages) your users go through to the desired outcomes you want them to achieve whether it’s a sale, sign-up or any other particular goal you have defined.

  

  Looking at the entire conversion funnel and focusing on usability, you’ll be able to identify where your visitors are having problems, where they aren’t understanding the flow of your webpages and identify obstacles that get in the way of your users reaching that end goal. Learn more

  How to improve conversion rates with Funnels : Learn what makes your visitors take action (or what stops them) in progressing to the next step in the conversion funnel. At each step, you’ll discover what content/layout resonates with your visitors and you can optimize your website to have the greatest impact on your business.

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  7. Behaviour

  This is one of the most important features to help you optimize your website for conversions. Learning visitor behaviour is a driving force to increase conversions. How ? It lets you identify where you could be taking action to increase conversions. You get to learn first-hand what content or feature on your site is or isn’t working for your visitors. 

  

  Engagement is essential to help increase conversion rates. If your visitors aren’t interested in the content on your site, then there’s very little chance they’ll be interested in what you have to offer. Learn more

  How to improve conversion rates with Behaviour : Get started by reducing bounce rates on important pages, testing messaging on your most popular entry pages, testing on the highest exit pages to reduce visitors leaving the site, learning pathways through Users Flow and Transitions to see if users are taking pathways that lead them to conversions or are the journeys currently long or go in odd directions. Discover how your visitors are responding to your content. The happier your visitors are to stay on your site, the more likely they’ll be able to move through the journey to help you achieve the goals you’ve set for your site.

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  Do privacy-focused industries need conversion optimization ?

  For industries that place extra emphasis on privacy and security, Matomo is a complete analytics tool that can cater for all your needs. You get the full benefits of a web analytics and conversion optimization platform as well as peace of mind knowing Matomo places emphasis on security/privacy and adheres strictly to GDPR.

  If you operate in a data sensitive industry like in government, healthcare, finance, education etc. you can rest assured knowing your user’s privacy is respected and that you will have 100% data ownership.

  Other conversion optimization metrics in Matomo to look at :

  Get a good indication that your conversion optimization efforts are working by knowing where to look and this starts by going through the metrics in your analytics. Below we list how you can make a start.

  “Best” metrics are hard to determine so you’ll need to ask yourself what you want your site to do. How do you want your users to behave or what kind of customer journey do you want them to have ?

  You can start with :

  • Decreasing abandonment rate
  • Decreasing bounce rate
  • Increasing interactions per visit
  • Reducing exit rates on pages that significantly impact your visitors to leave your site
  • Constantly test and learn what content resonates with your visitors
  • Look to advance more users through each stage of the conversion funnel
  • Improve your forms to increase submission rates
  • Always improve the conversion rate % for your goals e.g. if you currently have a 5% conversion rate for selling a product, aim for 10% ; if 30% of your visitors are downloading your e-book, then aim for 40%, then 50% and so on.

  Through optimizing your messaging, content or your page layouts, you will increase conversions by getting your visitors through a clear pathway to meet your website’s goal.

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• How to Choose the Optimal Multi-Touch Attribution Model for Your Organisation

  13 mars 2023, par Erin — Analytics Tips

  If you struggle to connect the dots on your customer journeys, you are researching the correct solution. 

  Multi-channel attribution models allow you to better understand the users’ paths to conversion and identify key channels and marketing assets that assist them.

  That said, each attribution model has inherent limitations, which make the selection process even harder.

  This guide explains how to choose the optimal multi-touch attribution model. We cover the pros and cons of popular attribution models, main evaluation criteria and how-to instructions for model implementation. 

  Pros and Cons of Different Attribution Models 

  

  First Interaction 

  First Interaction attribution model (also known as first touch) assigns full credit to the conversion to the first channel, which brought in a lead. However, it doesn’t report other interactions the visitor had before converting.

  Marketers, who are primarily focused on demand generation and user acquisition, find the first touch attribution model useful to evaluate and optimise top-of-the-funnel (ToFU). 

  Pros 

  • Reflects the start of the customer journey
  • Shows channels that bring in the best-qualified leads 
  • Helps track brand awareness campaigns

  Cons 

  • Ignores the impact of later interactions at the middle and bottom of the funnel 
  • Doesn’t provide a full picture of users’ decision-making process 

  Last Interaction 

  Last Interaction attribution model (also known as last touch) shifts the entire credit allocation to the last channel before conversion. But it doesn’t account for the contribution of all other channels. 

  If your focus is conversion optimization, the last-touch model helps you determine which channels, assets or campaigns seal the deal for the prospect. 

  Pros 

  • Reports bottom-of-the-funnel events
  • Requires minimal data and configurations 
  • Helps estimate cost-per-lead or cost-per-acquisition

  Cons 

  • No visibility into assisted conversions and prior visitor interactions 
  • Overemphasise the importance of the last channel (which can often be direct traffic) 

  Last Non-Direct Interaction 

  Last Non-Direct attribution excludes direct traffic from the calculation and assigns the full conversion credit to the preceding channel. For example, a paid ad will receive 100% of credit for conversion if a visitor goes directly to your website to buy a product. 

  Last Non-Direct attribution provides greater clarity into the bottom-of-the-funnel (BoFU). events. Yet, it still under-reports the role other channels played in conversion. 

  Pros 

  • Improved channel visibility, compared to Last-Touch 
  • Avoids over-valuing direct visits
  • Reports on lead-generation efforts

  Cons 

  • Doesn’t work for account-based marketing (ABM) 
  • Devalues the quality over quantity of leads 

  Linear Model

  Linear attribution model assigns equal credit for a conversion to all tracked touchpoints, regardless of their impact on the visitor’s decision to convert.

  It helps you understand the full conversion path. But this model doesn’t distinguish between the importance of lead generation activities versus nurturing touches.

  Pros 

  • Focuses on all touch points associated with a conversion 
  • Reflects more steps in the customer journey 
  • Helps analyse longer sales cycles

  Cons 

  • Doesn’t accurately reflect the varying roles of each touchpoint 
  • Can dilute the credit if too many touchpoints are involved 

  Time Decay Model 

  Time decay models assumes that the closer a touchpoint is to the conversion, the greater its influence. Pre-conversion touchpoints get the highest credit, while the first ones are ranked lower (5%-5%-10%-15%-25%-30%).

  This model better reflects real-life customer journeys. However, it devalues the impact of brand awareness and demand-generation campaigns. 

  Pros 

  • Helps track longer sales cycles and reports on each touchpoint involved 
  • Allows customising the half-life of decay to improve reporting 
  • Promotes conversion optimization at BoFu stages

  Cons 

  • Can prompt marketers to curtail ToFU spending, which would translate to fewer qualified leads at lower stages
  • Doesn’t reflect highly-influential events at earlier stages (e.g., a product demo request or free account registration, which didn’t immediately lead to conversion)

  Position-Based Model 

  Position-Based attribution model (also known as the U-shaped model) allocates the biggest credit to the first and the last interaction (40% each). Then distributes the remaining 20% across other touches. 

  For many marketers, that’s the preferred multi-touch attribution model as it allows optimising both ToFU and BoFU channels. 

  Pros 

  • Helps establish the main channels for lead generation and conversion
  • Adds extra layers of visibility, compared to first- and last-touch attribution models 
  • Promotes budget allocation toward the most strategic touchpoints

  Cons 

  • Diminishes the importance of lead nurturing activities as more credit gets assigned to demand-gen and conversion-generation channels
  • Limited flexibility since it always assigns a fixed amount of credit to the first and last touchpoints, and the remaining credit is divided evenly among the other touchpoints

  How to Choose the Right Multi-Touch Attribution Model For Your Business 

  If you’re deciding which attribution model is best for your business, prepare for a heated discussion. Each one has its trade-offs as it emphasises or devalues the role of different channels and marketing activities.

  To reach a consensus, the best strategy is to evaluate each model against three criteria : Your marketing objectives, sales cycle length and data availability. 

  Marketing Objectives 

  Businesses generate revenue in many ways : Through direct sales, subscriptions, referral fees, licensing agreements, one-off or retainer services. Or any combination of these activities. 

  In each case, your marketing strategy will look different. For example, SaaS and direct-to-consumer (DTC) eCommerce brands have to maximise both demand generation and conversion rates. In contrast, a B2B cybersecurity consulting firm is more interested in attracting qualified leads (as opposed to any type of traffic) and progressively nurturing them towards a big-ticket purchase. 

  When selecting a multi-touch attribution model, prioritise your objectives first. Create a simple scoreboard, where your team ranks various channels and campaign types you rely on to close sales. 

  Alternatively, you can survey your customers to learn how they first heard about your company and what eventually triggered their conversion. Having data from both sides can help you cross-validate your assumptions and eliminate some biases. 

  Then consider which model would best reflect the role and importance of different channels in your sales cycle. Speaking of which….

  Sales Cycle Length 

  As shoppers, we spend less time deciding on a new toothpaste brand versus contemplating a new IT system purchase. Factors like industry, business model (B2C, DTC, B2B, B2BC), and deal size determine the average cycle length in your industry. 

  Statistically, low-ticket B2C sales can happen within just several interactions. The average B2B decision-making process can have over 15 steps, spread over several months. 

  That’s why not all multi-touch attribution models work equally well for each business. Time-decay suits better B2B companies, while B2C usually go for position-based or linear attribution. 

  Data Availability 

  Businesses struggle with multi-touch attribution model implementation due to incomplete analytics data. 

  Our web analytics tool captures more data than Google Analytics. That’s because we rely on a privacy-focused tracking mechanism, which allows you to collect analytics without showing a cookie consent banner in markets outside of Germany and the UK. 

  Cookie consent banners are mandatory with Google Analytics. Yet, almost 40% of global consumers reject it. This results in gaps in your analytics and subsequent inconsistencies in multi-touch attribution reports. With Matomo, you can compliantly collect more data for accurate reporting. 

  Some companies also struggle to connect collected insights to individual shoppers. With Matomo, you can cross-attribute users across browning sessions, using our visitors’ tracking feature. 

  When you already know a user’s identifier (e.g., full name or email address), you can track their on-site behaviours over time to better understand how they interact with your content and complete their purchases. Quick disclaimer, though, visitors’ tracking may not be considered compliant with certain data privacy laws. Please consult with a local authority if you have doubts. 

  How to Implement Multi-Touch Attribution

  Multi-touch attribution modelling implementation is like a “seek and find” game. You have to identify all significant touchpoints in your customers’ journeys. And sometimes also brainstorm new ways to uncover the missing parts. Then figure out the best way to track users’ actions at those stages (aka do conversion and events tracking). 

  Here’s a step-by-step walkthrough to help you get started. 

  Select a Multi-Touch Attribution Tool 

  The global marketing attribution software is worth $3.1 billion. Meaning there are plenty of tools, differing in terms of accuracy, sophistication and price.

  To make the right call prioritise five factors :

  • Available models : Look for a solution that offers multiple options and allows you to experiment with different modelling techniques or develop custom models. 
  • Implementation complexity : Some providers offer advanced data modelling tools for creating custom multi-touch attribution models, but offer few out-of-the-box modelling options. 
  • Accuracy : Check if the shortlisted tool collects the type of data you need. Prioritise providers who are less dependent on third-party cookies and allow you to identify repeat users. 
  • Your marketing stack : Some marketing attribution tools come with useful add-ons such as tag manager, heatmaps, form analytics, user session recordings and A/B testing tools. This means you can collect more data for multi-channel modelling with them instead of investing in extra software. 
  • Compliance : Ensure that the selected multi-attribution analytics software wouldn’t put you at risk of GDPR non-compliance when it comes to user privacy and consent to tracking/analysis. 

  Finally, evaluate the adoption costs. Free multi-channel analytics tools come with data quality and consistency trade-offs. Premium attribution tools may have “hidden” licensing costs and bill you for extra data integrations. 

  Look for a tool that offers a good price-to-value ratio (i.e., one that offers extra perks for a transparent price). 

  Set Up Proper Data Collection 

  Multi-touch attribution requires ample user data. To collect the right type of insights you need to set up : 

  • Website analytics : Ensure that you have all tracking codes installed (and working correctly !) to capture pageviews, on-site actions, referral sources and other data points around what users do on page. 
  • Tags : Add tracking parameters to monitor different referral channels (e.g., “facebook”), campaign types (e.g., ”final-sale”), and creative assets (e.g., “banner-1”). Tags help you get a clearer picture of different touchpoints. 
  • Integrations : To better identify on-site users and track their actions, you can also populate your attribution tool with data from your other tools – CRM system, A/B testing app, etc. 

  Finally, think about the ideal lookback window — a bounded time frame you’ll use to calculate conversions. For example, Matomo has a default windows of 7, 30 or 90 days. But you can configure a custom period to better reflect your average sales cycle. For instance, if you’re selling makeup, a shorter window could yield better results. But if you’re selling CRM software for the manufacturing industry, consider extending it.

  Configure Goals and Events 

  Goals indicate your main marketing objectives — more traffic, conversions and sales. In web analytics tools, you can measure these by tracking specific user behaviours. 

  For example : If your goal is lead generation, you can track :

  • Newsletter sign ups 
  • Product demo requests 
  • Gated content downloads 
  • Free trial account registration 
  • Contact form submission 
  • On-site call bookings 

  In each case, you can set up a unique tag to monitor these types of requests. Then analyse conversion rates — the percentage of users who have successfully completed the action. 

  To collect sufficient data for multi-channel attribution modelling, set up Goal Tracking for different types of touchpoints (MoFU & BoFU) and asset types (contact forms, downloadable assets, etc). 

  Your next task is to figure out how users interact with different on-site assets. That’s when Event Tracking comes in handy. 

  Event Tracking reports notify you about specific actions users take on your website. With Matomo Event Tracking, you can monitor where people click on your website, on which pages they click newsletter subscription links, or when they try to interact with static content elements (e.g., a non-clickable banner). 

  Using in-depth user behavioural reports, you can better understand which assets play a key role in the average customer journey. Using this data, you can localise “leaks” in your sales funnel and fix them to increase conversion rates.

  Test and Validated the Selected Model 

  A common challenge of multi-channel attribution modelling is determining the correct correlation and causality between exposure to touchpoints and purchases. 

  For example, a user who bought a discounted product from a Facebook ad would act differently than someone who purchased a full-priced product via a newsletter link. Their rate of pre- and post-sales exposure will also differ a lot — and your attribution model may not always accurately capture that. 

  That’s why you have to continuously test and tweak the selected model type. The best approach for that is lift analysis. 

  Lift analysis means comparing how your key metrics (e.g., revenue or conversion rates) change among users who were exposed to a certain campaign versus a control group. 

  In the case of multi-touch attribution modelling, you have to monitor how your metrics change after you’ve acted on the model recommendations (e.g., invested more in a well-performing referral channel or tried a new brand awareness Twitter ad). Compare the before and after ROI. If you see a positive dynamic, your model works great. 

  The downside of this approach is that you have to invest a lot upfront. But if your goal is to create a trustworthy attribution model, the best way to validate is to act on its suggestions and then test them against past results. 

  Conclusion

  A multi-touch attribution model helps you measure the impact of different channels, campaign types, and marketing assets on metrics that matter — conversion rate, sales volumes and ROI. 

  Using this data, you can invest budgets into the best-performing channels and confidently experiment with new campaign types. 

  As a Matomo user, you also get to do so without breaching customers’ privacy or compromising on analytics accuracy.

  Start using accurate multi-channel attribution in Matomo. Get your free 21-day trial now. No credit card required.

• 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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