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• Google Analytics 4 and GDPR : Everything You Need to Know

  17 mai 2022, par Erin

  Four years have passed since the European General Data Protection Regulation (GDPR, also known as DSGVO in German, and RGPD in French) took effect.

  That’s ample time to get compliant, especially for an organisation as big and innovative as Google. Or is it ? 

  If you are wondering how GDPR affects Google Analytics 4 and what the compliance status is at present, here’s the lowdown. 

  Is Google Analytics 4 GDPR Compliant ?

  No. As of mid-2022, Google Analytics 4 (GA4) isn’t fully GDPR compliant. Despite adding extra privacy-focused features, GA4 still has murky status with the European regulators. After the invalidation of the Privacy Shield framework in 2020, Google is yet to regulate EU-US data protection. At present, the company doesn’t sufficiently protect EU citizens’ and residents’ data against US surveillance laws. This is a direct breach of GDPR.

  Google Analytics and GDPR : a Complex Relationship 

  European regulators have scrutinised Google since GDPR came into effect in 2018.

  While the company took steps to prepare for GDPR provisions, it didn’t fully comply with important regulations around user data storage, transfer and security.

  The relationship between Google and EU regulators got more heated after the Court of Justice of the European Union (CJEU) invalidated the Privacy Shield — a leeway Google used for EU-US data transfers. After 2020, GDPR litigation against Google followed. 

  This post summarises the main milestones in this story and explains the consequences for Google Analytics users. 

  

  2018 : Google Analytics Meets GDPR 

  In 2018, the EU adopted the General Data Protection Regulation (GDPR) — a set of privacy and data security laws, covering all member states. Every business interacting with EU citizens and/or residents had to comply.

  GDPR harmonised data protection laws across member states and put down extra provisions for what constitutes sensitive personal information (or PII). Broadly, PII includes any data about the person’s :

  • Racial or ethnic origin 
  • Employment status 
  • Religious or political beliefs
  • State of health 
  • Genetic or biometric data 
  • Financial records (such as payment method data)
  • Address and phone numbers 

  Businesses were barred from collecting this information without explicit consent (and even with it in some cases). If collected, such sensitive information is also subject to strict requirements on how it should be stored, secured, transferred and used. 

  7 Main GDPR Principles Explained 

  Article 5 of the GDPR lays out seven main GDPR principles for personal data and privacy protection : 

  • Lawfulness, fairness and transparency — data must be obtained legally, collected with consent and in adherence to laws. 
  • Purpose limitation — all personal information must be collected for specified, explicit and legal purposes. 
  • Data minimisation — companies must collect only necessary and adequate data, aligned with the stated purpose. 
  • Accuracy — data accuracy must be ensured at all times. Companies must have mechanisms to erase or correct inaccurate data without delays. 
  • Storage limitation — data must be stored only for as long as the stated purpose suggests. Though there’s no upper time limit on data storage. 
  • Integrity and confidentiality (security) — companies must take measures to ensure secure data storage and prevent unlawful or unauthorised access to it. 
  • Accountability — companies must be able to demonstrate adherence to the above principles. 

  Google claimed to have taken steps to make all of their products GDPR compliant ahead of the deadline. But in practice, this wasn’t always the case.

  In March 2018, a group of publishers admonished Google for not providing them with enough tools for GDPR compliance :

  “[Y]ou refuse to provide publishers with any specific information about how you will collect, share and use the data. Placing the full burden of obtaining new consent on the publisher is untenable without providing the publisher with the specific information needed to provide sufficient transparency or to obtain the requisite specific, granular and informed consent under the GDPR.”

  The proposed Google Analytics GDPR consent form was hard to implement and lacked customisation options. In fact, Google “makes unilateral decisions” on how the collected data is stored and used. 

  Users had no way to learn about or control all intended uses of people’s data — which made compliance with the second clause impossible. 

  Unsurprisingly, Google was among the first companies to face a GDPR lawsuit (together with Facebook). 

  By 2019, French data regulator CNIL, successfully argued that Google wasn’t sufficiently disclosing its data collection across products — and hence in breach of GDPR. After a failed appeal, Google had to pay a €50 million fine and promise to do better. 

  2019 : Google Analytics 4 Announcement 

  Throughout 2019, Google rightfully attempted to resolve some of its GDPR shortcomings across all products, Google Universal Analytics (UA) included. 

  They added a more visible consent mechanism for online tracking and provided extra compliance tips for users to follow. In the background, Google also made tech changes to its data processing mechanism to get on the good side of regulations.

  Though Google addressed some of the issues, they missed others. A 2019 independent investigation found that Google real-time-bidding (RTB) ad auctions still used EU citizens’ and residents’ data without consent, thanks to a loophole called “Push Pages”. But they managed to quickly patch this up before the allegations had made it to court. 

  In November 2019, Google released a beta version of the new product version — Google Analytics 4, due to replace Universal Analytics. 

  GA4 came with a set of new privacy-focused features for ticking GDPR boxes such as :

  • Data deletion mechanism. Users can now request to surgically extract certain data from the Analytics servers via a new interface. 
  • Shorter data retention period. You can now shorten the default retention period to 2 months by default (instead of 14 months) or add a custom limit.  
  • IP Anonymisation. GA4 doesn’t log or store IP addresses by default. 

  Google Analytics also updated its data processing terms and made changes to its privacy policy. 

  Though Google made some progress, Google Analytics 4 still has many limitations — and isn’t GDPR compliant. 

  2020 : Privacy Shield Invalidation Ruling 

  As part of the 2018 GDPR preparations, Google named its Irish entity (Google Ireland Limited) as the “data controller” legally responsible for EEA and Swiss users’ information. 

  The company announcement says : 

  

  Initially, Google assumed that this legal change would help them ensure GDPR compliance as “legally speaking” a European entity was set in charge of European data. 

  Practically, however, EEA consumers’ data was still primarily transferred and processed in the US — where most Google data centres are located. Until 2020, such cross-border data transfers were considered legal thanks to the Privacy Shield framework. 

  But in July 2020, The EU Court of Justice ruled that this framework doesn’t provide adequate data protection to digitally transmitted data against US surveillance laws. Hence, companies like Google can no longer use it. The Swiss Federal Data Protection and Information Commissioner (FDPIC) reached the same conclusion in September 2020. 

  The invalidation of the Privacy Shield framework put Google in a tough position.

   Article 14. f of the GDPR explicitly states : 

  “The controller (the company) that intends to carry out a transfer of personal data to a recipient (Analytics solution) in a third country or an international organisation must provide its users with information on the place of processing and storage of its data”.

  Invalidation of the Privacy Shield framework prohibited Google from moving data to the US. At the same time, GDPR provisions mandated that they must disclose proper data location. 

  But Google Analytics (like many other products) had no a mechanism for : 

  • Guaranteeing intra-EU data storage 
  • Selecting a designated regional storage location 
  • Informing users about data storage location or data transfers outside of the EU 

  And these factors made Google Analytics in direct breach of GDPR — a territory, where they remain as of 2022.

  2020-2022 : Google GDPR Breaches and Fines 

  The 2020 ruling opened Google to GDPR lawsuits from country-specific data regulators.

  Google Analytics in particular was under a heavy cease-fire. 

  • Sweden first fined Google for violating GDPR for no not fulfilling its obligations to request data delisting in 2020. 
  • France rejected Google Analytics 4 IP address anonymisation function as a sufficient measure for protecting cross-border data transfers. Even with it, US intelligence services can still access user IPs and other PII. France declared Google Analytics illegal and pressed a €150 million fine. 
  • Austria also found Google Analytics GDPR non-compliant and proclaimed the service as “illegal”. The authority now seeks a fine too. 

  The Dutch Data Protection Authority and  Norwegian Data Protection Authority also found Google Analytics guilty of a GDPR breach and seek to limit Google Analytics usage. 

  New privacy controls in Google Analytics 4 do not resolve the underlying issue — unregulated, non-consensual EU-US data transfer. 

  Google Analytics GDPR non-compliance effectively opens any website tracking or analysing European visitors to legal persecution.

  In fact, this is already happening. noyb, a European privacy-focused NGO, has already filed over 100 lawsuits against European websites using Google Analytics.

  2022 : Privacy Shield 2.0. Negotiations

  Google isn’t the only US company affected by the Privacy Shield framework invalidation. The ruling puts thousands of digital companies at risk of non-compliance.

  To settle the matter, US and EU authorities started “peace talks” in spring 2022.

  European Commission President Ursula von der Leyen said that they are working with the Biden administration on the new agreement that will “enable predictable and trustworthy data flows between the EU and US, safeguarding the privacy and civil liberties.” 

  However, it’s just the beginning of a lengthy negotiation process. The matter is far from being settled and contentious issues remain as we discussed on Twitter (come say hi !).

  

  For one, the US isn’t eager to modify its surveillance laws and is mostly willing to make them “proportional” to those in place in the EU. These modifications may still not satisfy CJEU — which has the power to block the agreement vetting or invalidate it once again. 

  While these matters are getting hashed out, Google Analytics users, collecting data about EU citizens and/or residents, remain on slippery grounds. As long as they use GA4, they can be subject to GDPR-related lawsuits. 

  To Sum It Up 

  • Google Analytics 4 and Google Universal Analytics are not GDPR compliant because of Privacy Shield invalidation in 2020. 
  • French and Austrian data watchdogs named Google Analytics operations “illegal”. Swedish, Dutch and Norwegian authorities also claim it’s in breach of GDPR. 
  • Any website using GA for collecting data about European citizens and/or residents can be taken to court for GDPR violations (which is already happening). 
  • Privacy Shield 2.0 Framework discussions to regulate EU-US data transfers have only begun and may take years. Even if accepted, the new framework(s) may once again be invalidated by local data regulators as has already happened in the past. 

  Time to Get a GDPR Compliant Google Analytics Alternative 

  Retaining 100% data ownership is the optimal path to GDPR compliance.

  By selecting a transparent web analytics solution that offers 100% data ownership, you can rest assured that no “behind the scenes” data collection, processing or transfers take place. 

  Unlike Google Analytics 4, Matomo offers all of the features you need to be GDPR compliant : 

  • Full data anonymisation 
  • Single-purpose data usage 
  • Easy consent and an opt-out mechanism 
  • First-party cookies usage by default 
  • Simple access to collect data 
  • Fast data removals 
  • EU-based data storage for Matomo Cloud (or storage in the country of your choice with Matomo On-Premise)

  Learn about your audiences in a privacy-centred way and protect your business against unnecessary legal exposure. 

  Start your 21-day free trial (no credit card required) to see how fully GDPR-compliant website analytics works ! 

  21 day free trial. No credit card required.

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• Top 4 CRO Tools to Boost Your Conversion Rates in 2024

  31 octobre 2023, par Erin

  Are you tired of watching potential customers leave your website without converting ? You’ve spent countless hours creating an engaging website, but those high bounce rates keep haunting you.

  The good news ? The solution lies in the transformative power of Conversion Rate Optimisation (CRO) tools. In this guide, we’ll dive deep into the world of CRO tools. We will equip you with strategies to turn those bounces into conversions.

  Why are conversion rate optimisation tools so crucial ?

  CRO tools can be assets in digital marketing, playing a pivotal role in enhancing online businesses’ performance. CRO tools empower businesses to improve website conversion rates by analysing user behaviour. You can then leverage this user data to optimise web elements.

  Improving website conversion rates is paramount because it increases revenue and customer satisfaction. A study by VentureBeat revealed an average return on investment (ROI) of 223% thanks to CRO tools.

  173 marketers out of the surveyed group reported returns exceeding 1,000%. Both of these data points highlight the impact CRO tools can have.

  

  Coupled with CRO tools, certain testing tools and web analytics tools play a crucial role. They offer insight into user behaviour patterns, enabling businesses to choose effective strategies. By understanding what resonates with users, these tools help inform data-driven decisions. This allows businesses to refine online strategies and enhance the customer experience.

  CRO tools enhance user experiences and ensure business sustainability. Integrating these tools is crucial for staying ahead. CRO and web analytics work together to optimise digital presence. 

  Real-world examples of CRO tools in action

  In this section, we’ll explore real case studies showcasing CRO tools in action. See how businesses enhance conversion rates, user experiences, and online performance. These studies reveal the practical impact of data-driven decisions and user-focused strategies.

  

  Case study : How Matomo’s Form Analytics helped Concrete CMS 3x leads

  Concrete CMS, is a content management system provider that helps users build and manage websites. They used Matomo’s Form Analytics to uncover that users were getting stuck at the address input stage of the onboarding process. Using these insights to make adjustments to their onboarding form, Concrete CMS was able to achieve 3 times the amount of leads in just a few days.

  Read the full Concrete CMS case study.

  Best analytics tools for enhancing conversion rate optimisation in 2023

  Jump to the comparison table to see an overview of each tool.

  1. Matomo

  

  Matomo stands out as an all-encompassing tool that seamlessly combines traditional web analytics features (like pageviews and bounce rates) with advanced behavioural analytics capabilities, providing a full spectrum of insights for effective CRO.

  Key features

  • Heatmaps and Session Recordings :
    These features empower businesses to see their websites through the eyes of their visitors. By visually mapping user engagement and observing individual sessions, businesses can make informed decisions, enhance user experience and ultimately increase conversions. These tools are invaluable assets for businesses aiming to create user-friendly websites.

  • Form Analytics :
    Matomo’s Form Analytics offers comprehensive tracking of user interactions within forms. This includes covering input fields, dropdowns, buttons and submissions. Businesses can create custom conversion funnels and pinpoint form abandonment reasons. 

  • Users Flow :
    Matomo’s Users Flow feature tracks visitor paths, drop-offs and successful routes, helping businesses optimise their websites. This insight informs decisions, enhances user experience, and boosts conversion rates.

  • Surveys plugin :
    The Matomo Surveys plugin allows businesses to gather direct feedback from users. This feature enhances understanding by capturing user opinions, adding another layer to the analytical depth Matomo offers.

  • A/B testing :
    The platform allows you to conduct A/B tests to compare different versions of web pages. This helps determine which performs better in conversions. By conducting experiments and analysing the results within Matomo, businesses can iteratively refine their content and design elements.

  • Funnels :
    Matomo’s Funnels feature empower businesses to visualise, analyse and optimise their conversion paths. By identifying drop-off points, tailoring user experiences and conducting A/B tests within the funnel, businesses can make data-driven decisions that significantly boost conversions and enhance the overall user journey on their websites.

  Pros

  • Starting at $19 per month, Matomo is an affordable CRO solution.
  • Matomo guarantees accurate data, eliminating the need to fill gaps with artificial intelligence (AI) or machine learning. 
  • Matomo’s open-source framework ensures enhanced security, privacy, customisation, community support and long-term reliability. 

  Cons

  • The On-Premise (self-hosted) version is free, with additional charges for advanced features.
  • Managing Matomo On-Premise requires servers and technical know-how.

  Try Matomo for Free

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

  Start for free

  No credit card required

  2. Google Analytics

  

  Google Analytics provides businesses and website owners valuable insights into their online audience. It tracks website traffic, user interactions and analyses conversion data to enhance the user experience.

  While Google Analytics may not provide the extensive CRO-specific features found in other tools on this list, it can still serve as a valuable resource for basic analysis and optimisation of conversion rates.

  Key features

  • Comprehensive Data Tracking :
    Google Analytics meticulously tracks website traffic, user behaviour and conversion rates. These insights form the foundation for CRO efforts. Businesses can identify patterns, user bottlenecks and high-performing areas.

  • Real-Time Reporting :
    Access to real-time data is invaluable for CRO efforts. Monitor current website activity, user interactions, and campaign performance as they unfold. This immediate feedback empowers businesses to make instant adjustments, optimising web elements and content for maximum conversions.

  • User flow analysis
    Visualise and understand how visitors navigate through your website. It provides insights into the paths users take as they move from one page to another, helping you identify the most common routes and potential drop-off points in the user journey.

  • Event-based tracking :
    GA4’s event-based reporting offers greater flexibility and accuracy in data collection. By tracking various interactions, including video views and checkout processes, businesses can gather more precise insights into user behaviour. 

  • Funnels :
    GA4 offers multistep funnels, path analysis, custom metrics that integrate with audience segments. These user behaviour insights help businesses to tailor their websites, marketing campaigns and user experiences.

  Pros

  • Flexible audience management across products, regions or brands allow businesses to analyse data from multiple source properties. 
  • Google Analytics integrates with other Google services and third-party platforms. This enables a comprehensive view of online activities.
  • Free to use, although enterprises may need to switch to the paid version to accommodate higher data volumes.

  Cons

  • Google Analytics raises privacy concerns, primarily due to its tracking capabilities and the extensive data it collects.
  • Limitations imposed by thresholding can significantly hinder efforts to enhance user experience and boost conversions effectively.
  • Property and sampling limits exist. This creates problems when you’re dealing with extensive datasets or high-traffic websites. 
  • The interface is difficult to navigate and configure, resulting in a steep learning curve.

  3. Contentsquare

  

  Contentsquare is a web analytics and CRO platform. It stands out for its in-depth behavioural analytics. Contentsquare offers detailed data on how users interact with websites and mobile applications.

  Key features

  • Heatmaps and Session Replays :
    Users can visualise website interactions through heatmaps, highlighting popular areas and drop-offs. Session replay features enable the playback of user sessions. These provide in-depth insights into individual user experiences.

  • Conversion Funnel Analysis :
    Contentsquare tracks users through conversion funnels, identifying where users drop off during conversion. This helps in optimising the user journey and increasing conversion rates.

  • Segmentation and Personalisation :
    Businesses can segment their audience based on various criteria. Segments help create personalised experiences, tailoring content and offers to specific user groups.

  • Integration Capabilities :
    Contentsquare integrates with various third-party tools and platforms, enhancing its functionality and allowing businesses to leverage their existing tech stack.

  Pros

  • Comprehensive support and resources.
  • User-friendly interface.
  • Personalisation capabilities.

  Cons

  • High price point.
  • Steep learning curve.

  4. Hotjar

  

  Hotjar is a robust tool designed to unravel user behaviour intricacies. With its array of features including visual heatmaps, session recordings and surveys, it goes beyond just identifying popular areas and drop-offs.

  Hotjar provides direct feedback and offers an intuitive interface, enabling seamless experience optimisation.

  Key features

  • Heatmaps :
    Hotjar provides visual heatmaps that display user interactions on your website. Heatmaps show where users click, scroll, and how far they read. This feature helps identify popular areas and points of abandonment.

  • Session Recordings :
    Hotjar allows you to record user sessions and watch real interactions on your site. This insight is invaluable for understanding user behaviour and identifying usability issues.

  • Surveys and Feedback :
    Hotjar offers on-site surveys and feedback forms that can get triggered based on user behaviour. These tools help collect qualitative data from real users, providing valuable insights.

  • Recruitment Tool :
    Hotjar’s recruitment tool lets you recruit participants from your website for user testing. This feature streamlines the process of finding participants for usability studies.

  • Funnel and Form Analysis :
    Hotjar enables the tracking of user journeys through funnels. It provides insights into where users drop off during the conversion process. It also offers form analysis to optimise form completion rates.

  • User Polls :
    You can create customisable polls to engage with visitors. Gather specific feedback on your website, products, or services.

  Pros

  • Starting at $32 per month, Hotjar is a cost-effective solution for most businesses. 
  • Hotjar provides a user-friendly interface that is easy for the majority of users to pick up quickly.

  Cons

  • Does not provide traditional web analytics and requires combining with another tool, potentially creating a less streamlined and cohesive user experience, which can complicate conversion rate optimization efforts.
  • Hotjar’s limited integrations can hinder its ability to seamlessly work with other essential tools and platforms, potentially further complicating CRO.

  Comparison Table

  Please note : We aim to keep this table accurate and up to date. However, if you see any inaccuracies or outdated information, please email us at marketing@matomo.org

  To make comparing these tools even easier, we’ve put together a table for you to compare features and price points :

  

  Conclusion

  CRO tools and web analytics are essential for online success. Businesses thrive by investing wisely, understanding user behaviour and using targeted strategies. The key : generate traffic and convert it into leads and customers. The right tools and strategies lead to remarkable conversions and online success. Each click, each interaction, becomes an opportunity to create an engaging user journey. This careful orchestration of data and insight separates thriving businesses from the rest.

  Are you ready to embark on a journey toward improved conversions and enhanced user experiences ? Matomo offers analytics solutions meticulously designed to complement your CRO strategy. Take the next step in your CRO journey. Start your 21-day free trial today—no credit card required.

  Try Matomo for Free

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• A Guide to Bank Customer Segmentation

  18 juillet 2024, par Erin

  Banking customers are more diverse, complex, and demanding than ever. As a result, banks have to work harder to win their loyalty, with 75% saying they would switch to a bank that better fits their needs.

  The problem is banking customers’ demands are increasingly varied amid economic uncertainties, increased competition, and generational shifts.

  If banks want to retain their customers, they can’t treat them all the same. They need a bank customer segmentation strategy that allows them to reach specific customer groups and cater to their unique demands.

  What is customer segmentation ?

  Customer segmentation divides a customer base into distinct groups based on shared characteristics or behaviours.

  This allows companies to analyse the behaviours and needs of different customer groups. Banks can use these insights to target segments with relevant marketing throughout the customer cycle, e.g., new customers, inactive customers, loyal customers, etc.

  You combine data points from multiple segmentation categories to create a customer segment. The most common customer segmentation categories include :

  • Demographic segmentation
  • Website activity segmentation
  • Geographic segmentation
  • Purchase history segmentation
  • Product-based segmentation
  • Customer lifecycle segmentation
  • Technographic segmentation
  • Channel preference segmentation
  • Value-based segmentation

  

  By combining segmentation categories, you can create detailed customer segments. For example, high-value customers based in a particular market, using a specific product, and approaching the end of the lifecycle. This segment is ideal for customer retention campaigns, localised for their market and personalised to satisfy their needs.

  

  Matomo’s privacy-centric web analytics solution helps you capture data from the first visit. Unlike Google Analytics, Matomo doesn’t use data sampling (more on this later) or AI to fill in data gaps. You get 100% accurate data for reliable insights and customer segmentation.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Why is customer segmentation important for banks ?

  Customer segmentation allows you to address the needs of specific groups instead of treating all of your customers the same. This has never been more important amid a surge in bank switching, with three in four customers ready to switch to a provider that better suits their needs.

  Younger customers are the most likely to switch, with 19% of 18-24 year olds changing their primary bank in the past year (PDF).

  Customer expectations are changing, driven by economic uncertainties, declining trust in traditional banking, and the rise of fintech. Even as economic pressures lift, banks need to catch up with the demands of maturing millennials, Gen Z, and future generations of banking customers.

  Switching is the new normal, especially for tech-savvy customers encouraged by an expanding world of digital banking options.

  To retain customers, banks need to know them better and understand how their needs change over time. Customer retention provides the insights banks need to understand these needs at a granular level and the means to target specific customer groups with relevant messages.

  At its core, customer segmentation is essential to banks for two key reasons :

  • Customer retention : Holding on to customers for longer by satisfying their personal needs.
  • Customer lifetime value : Maximising ongoing customer revenue through retention, purchase frequency, cross-selling, and upselling.

  Here are some actionable bank customer segmentation strategies that can achieve these two objectives :

  Prevent switching with segment analysis

  Use customer segmentation to prevent them from switching to rivals by knowing what they want from you. Analyse customer needs and how they change throughout the lifecycle. Third-party data reveals general trends, but what do your customers want ?

  

  Use first-party customer data and segmentation to go beyond industry trends. Know exactly what your customers want from you and how to deliver targeted messages to each segment — e.g., first-time homebuyers vs. retirement planners.

  Keep customers active with segment targeting

  Target customer segments to keep customers engaged and motivated. Create ultra-relevant marketing messages and deliver them with precision to distinct customer segments. Nurture customer motivation by continuing to address their problems and aspirations.

  Improve the quality of services and products

  Knowing your customers’ needs in greater detail allows you to adapt your products and messages to cater to the most important segments. Customers switch banks because they feel their needs are better met elsewhere. Prevent this by implementing customer segmentation insights into product development and marketing.

  Personalise customer experiences by layering segments

  Layer segments to create ultra-specific target customer groups for personalised services and marketing campaigns. For example, top-spending customers are one of your most important segments, but there’s only so much you can do with this. However, you can divide this group into even narrower target audiences by layering multiple segments.

  For example, segmenting top-spending customers by product type can create more relevant messaging. You can also segment recent activity and pinpoint specific usage segments, such as those with a recent drop in transactions.

  Now, you have a three-layered segment of high-spending customers who use specific products less often and whom you can target with re-engagement campaigns.

  Maximise customer lifetime value

  Bringing all of this together, customer segmentation helps you maximise customer lifetime value in several ways :

  • Prevent switching
  • Enhance engagement and motivation
  • Re-engage customers
  • Cross-selling, upselling
  • Personalised customer loyalty incentives

  The longer you retain customers, the more you can learn about them, and the more effective your lifetime value campaigns will be.

  Balancing bank customer segmentation with privacy and marketing regulations

  Of course, customer segmentation uses a lot of data, which raises important legal and ethical questions. First, you need to comply with data and privacy regulations, such as GDPR and CCPA. Second, you also have to consider the privacy expectations of your customers, who are increasingly aware of privacy issues and rising security threats targeting financial service providers.

  If you aim to retain and maximise customer value, respecting their privacy and protecting their data are non-negotiables.

  Regulators are clamping down on finance

  Regulatory scrutiny towards the finance industry is intensifying, largely driven by the rise of fintech and the growing threat of cyber attacks. Not only was 2023 a record-breaking year for finance security breaches but several compromises of major US providers “exposed shortcomings in the current supervisory framework and have put considerable public pressure on banking authorities to reevaluate their supervisory and examination programs” (Deloitte).

  Banks face some of the strictest consumer protections and marketing regulations, but the digital age creates new threats.

  In 2022, the Consumer Financial Protection Bureau (CFPB) warned that digital marketers must comply with finance consumer protections when targeting audiences. CFPB Director Rohit Chopra said : “When Big Tech firms use sophisticated behavioural targeting techniques to market financial products, they must adhere to federal consumer financial protection laws.”

  This couldn’t be more relevant to customer segmentation and the tools banks use to conduct it.

  Customer data in the hands of agencies and big tech

  Banks should pay attention to the words of CFPB Director Rohit Chopra when partnering with marketing agencies and choosing analytics tools. Digital marketing agencies are rarely experts in financial regulations, and tech giants like Google don’t have the best track record for adhering to them.

  Google is constantly in the EU courts over its data use. In 2022, the EU ruled that the previous version of Google Analytics violated EU privacy regulations. Google Analytics 4 was promptly released but didn’t resolve all the issues.

  Meanwhile, any company that inadvertently misuses Google Analytics is legally responsible for its compliance with data regulations.

  Banks need a privacy-centric alternative to Google Analytics

  Google’s track record with data regulation compliance is a big issue, but it’s not the only one. Google Analytics uses data sampling, which Google defines as the “practice of analysing a subset of data to uncover meaningful information from a larger data set.”

  This means Google Analytics places thresholds on how much of your data it analyses — anything after that is calculated assumptions. We’ve explained why this is such a problem before, and GA4 relies on data sampling even more than the previous version.

  In short, banks should question whether they can trust Google with their customer data and whether they can trust Google Analytics to provide accurate data in the first place. And they do. 80% of financial marketers say they’re concerned about ad tech bias from major providers like Google and Meta.

  

  Matomo is the privacy-centric alternative to Google Analytics, giving you 100% data ownership and compliant web analytics. With no data sampling, Matomo provides 20-40% more data to help you make accurate, informed decisions. Get the data you need for customer segmentation without putting their data at risk.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Bank customer segmentation examples

  Now, let’s look at some customer segments you create and layer to target specific customer groups.

  Visit-based segmentation

  Visit segmentation filters audiences based on the pages they visit on your website and the behaviors they exhibit—for example, first-time visitors vs. returning visitors or landing page visitors vs. blog page visitors.

  If you look at HSBC’s website, you’ll see it is structured into several categories for key customer personas. One of its segments is international customers living in the US, so it has pages and resources expats, people working in the US, people studying in the US, etc. 

  

  By combining visit-based segmentation with ultra-relevant pages for specific target audiences, HSBC can track each group’s demand and interest and analyse their behaviours. It can determine which audiences are returning, which products they want, and which messages convert them.

  Demographic segmentation

  Demographic segmentation divides customers by attributes such as age, gender, and location. However, you can also combine these insights with other non-personal data to better understand specific audiences.

  For example, in Matomo, you can segment audiences based on the language of their browser, the country they’re visiting from, and other characteristics. So, in this case, HSBC could differentiate between visitors already residing in the US and those outside of the country looking for information on moving there.

  

  It could determine which countries they’re visiting, which languages to localise for, and which networks to run ultra-relevant social campaigns on.

  Interaction-based segmentation

  Interaction-based segmentation uses events and goals to segment users based on their actions on your website. For example, you can segment audiences who visit specific URLs, such as a loan application page, or those who don’t complete an action, such as failing to complete a form.

  

  With events and goals set up, you can track the actions visitors complete before making purchases. You can monitor topical interests, page visits, content interactions, and pathways toward conversions, which feed into their customer journey.

  From here, you can segment customers based on their path leading up to their first purchase, follow-up purchases, and other actions.

  Purchase-based segmentation

  Purchase-based segmentation allows you to analyse the customer behaviours related to their purchase history and spending habits. For example, you can track the journey of repeat customers or identify first-time buyers showing interest in other products/services.

  You can implement these insights into your cross-selling and upselling campaigns with relevant messages designed to increase retention and customer lifetime value.

  Get reliable website analytics for your bank customer segmentation needs

  With customers switching in greater numbers, banks need to prioritise customer retention and lifetime value. Customer segmentation allows you to target specific customer groups and address their unique needs — the perfect strategy to stop them from moving to another provider.

  Quality, accurate data is the key ingredient of an effective bank customer segmentation strategy. Don’t accept data sampling from Google Analytics or any other tool that limits the amount of your own data you can access. Choose a web analytics tool like Matamo that unlocks the full potential of your website analytics to get the most out of bank customer segmentation.

  Matomo is trusted by over 1 million websites globally, including many banks, for its accuracy, compliance, and reliability. Discover why financial institutions rely on Matomo to meet their web analytics needs.

  Start collecting the insights you need for granular, layered segmentation — without putting your bank customer data at risk. Request a demo of Matomo now.

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