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• 7 Fintech Marketing Strategies to Maximise Profits in 2024

  24 juillet 2024, par Erin

  Fintech investment skyrocketed in 2021, but funding tanked in the following two years. A -63% decline in fintech investment in 2023 saw the worst year in funding since 2017. Luckily, the correction quickly floored, and the fintech industry will recover in 2024, but companies will have to work much harder to secure funds.

  F-Prime’s The 2024 State of Fintech Report called 2023 the year of “regulation on, risk off” amid market pressures and regulatory scrutiny. Funding is rising again, but investors want regulatory compliance and stronger growth performance from fintech ventures.

  Here are seven fintech marketing strategies to generate the growth investors seek in 2024.

  Top fintech marketing challenges in 2024

  Following the worst global investment run since 2017 in 2023, fintech marketers need to readjust their goals to adapt to the current market challenges. The fintech honeymoon is over for Wall Street with regulator scrutiny, closures, and a distinct lack of profitability giving investors cold feet.

  Here are the biggest challenges fintech marketers face in 2024 :

  • Market correction : With fewer rounds and longer times between them, securing funds is a major challenge for fintech businesses. F-Prime’s The 2024 State of Fintech Report warns of “a high probability of significant shutdowns in 2024 and 2025,” highlighting the importance of allocating resources and budgets effectively.
  • Contraction : Aside from VC funding decreasing by 64% in 2023, the payments category now attracts a large majority of fintech investment, meaning there’s a smaller share from a smaller pot to go around for everyone else.
  • Competition : The biggest names in finance have navigated heavy disruption from startups and, for the most part, emerged stronger than ever. Meanwhile, fintech is no longer Wall Street’s hottest commodity as investors turn their attention to AI.
  • Regulations : Regulatory scrutiny of fintech intensified in 2023 – particularly in the US – contributing to the “regulation on, risk off” summary of F-Prime’s report.
  • Investor scrutiny : With market and industry challenges intensifying, investors are putting their money behind “safer” ventures that demonstrate real, sustainable profitability, not short-term growth.
  • Customer loyalty : Even in traditional baking and finance, switching is surging as customers seek providers who better meet their needs. To achieve the sustainable growth investors are looking for, fintech startups need to know their ideal customer profile (ICP), tailor their products/services and fintech marketing campaigns to them, and retain them throughout the customer lifecycle.

  

  The good news for fintech marketers is that the market correction is leveling out in 2024. In The 2024 State of Fintech Report, F-Prime says that “heading into 2024, we see the fintech market amid a rebound,” while McKinsey expects fintech revenue to grow “almost three times faster than those in the traditional banking sector between 2023 and 2028.”

  Winning back investor confidence won’t be easy, though. F-Prime acknowledges that investors are prioritising high-performance fintech ventures, particularly those with high gross margins. Fintech marketers need to abandon the growth-at-all-costs mindset and switch to a data-driven optimisation, growth and revenue system.

  7 fintech marketing strategies

  Given the current state of the fintech industry and relatively low levels of investor confidence, fintech marketers’ priority is building a new culture of sustainable profit. This starts with rethinking priorities and switching up the marketing goals to reflect longer-term ambitions.

  So, here are the fintech marketing strategies that matter most in 2024.

  1. Optimise for profitability over growth at all costs

  To progress from the growth-at-all-cost mindset, fintech marketers need to optimise for different KPIs. Instead of flexing metrics like customer growth rate, fintech companies need to take a more balanced approach to measuring sustainable profitability.

  This means holding on to existing customers – and maximising their value – while they acquire new customers. It also means that, instead of trying to make everyone a target customer, you concentrate on targeting the most valuable prospects, even if it results in a smaller overall user base.

  Optimising for profitability starts with putting vanity metrics in their place and pinpointing the KPIs that represent valuable business growth :

  • Gross profit margin
  • Revenue growth rate
  • Cash flow
  • Monthly active user growth (qualify “active” as completing a transaction)
  • Customer acquisition cost
  • Customer retention rate
  • Customer lifetime value
  • Avg. revenue per user
  • Avg. transactions per month
  • Avg. transaction value

  With a more focused acquisition strategy, you can feed these insights into every company level. For example, you can prioritise customer engagement, revenue, retention, and customer service in product development and customer experience (CX).

  To ensure all marketing efforts are pulling towards these KPIs, you need an attribution system that accurately measures the contribution of each channel.

  Marketing attribution (aka multi-touch attribution) should be used to measure every touchpoint in the customer journey and accurately credit them for driving revenue. This helps you allocate the correct budget to the channels and campaigns, adding real value to the business (e.g., social media marketing vs content marketing).

  Example : Mastercard helps a digital bank acquire 10 million high-value customers

  For example, Mastercard helped a digital bank in Latin America achieve sustainable growth beyond customer acquisition. The fintech company wanted to increase revenue through targeted acquisition and profitable engagement metrics.

  Strategies included :

  • A more targeted acquisition strategy for high-value customers
  • Increasing avg. spend per customer
  • Reducing acquisition cost
  • Customer retention

  As a result, Mastercard’s advisors helped this fintech company acquire 10 million new customers in two years. More importantly, they increased customer spending by 28% while reducing acquisition costs by 13%, creating a more sustainable and profitable growth model.

  2. Use web and app analytics to remotivate users before they disengage

  Engagement is the key to customer retention and lifetime value. To prevent valuable customers from disengaging, you need to intervene when they show early signs of losing interest, but they’re still receptive to your incentivisation tactics (promotions, rewards, milestones, etc.).

  By integrating web and app analytics, you can identify churn patterns and pinpoint the sequences of actions that lead to disengaging. For example, you might determine that customers who only log in once a month, engage with one dashboard, or drop below a certain transaction rate are at high risk for churn.

  Using a tool like Matomo for web and app analytics, you can detect these early signs of disengagement. Once you identify your churn risks, you can create triggers to automatically fire re-engagement campaigns. You can also use CRM and session data to personalize campaigns to directly address the cause of disengagement, e.g., valuable content or incentives to increase transaction rates.

  Example : Dynamic Yield fintech re-engagement case study

  In this Dynamic Yield case study, one leading fintech company uses customer spending patterns to identify those most likely to disengage. The company set up automated campaigns with personalised in-app messaging, offering time-bound incentives to increase transaction rates.

  

  With fully automated re-engagement campaigns, this fintech company increased customer retention through valuable engagement and revenue-driving actions.

  3. Identify the path your most valuable customers take

  Why optimise web experiences for everyone when you can tailor the online journey for your most valuable customers ? Use customer segmentation to identify the shared interests and habits of your most valuable customers. You can learn a lot about customers based on where the pages they visit and the content they engage with before taking action.

  Use these insights to optimise funnels that motivate prospects displaying the same customer behaviours as your most valuable customers.

  Get 20-40% more data with Matomo

  One of the biggest issues with Google Analytics and many similar tools is that they produce inaccurate data due to data sampling. Once you collect a certain amount of data, Google reports estimates instead of giving you complete, accurate insights.

  This means you could be basing important business decisions on inaccurate data. Furthermore, when investors are nervous about the uncertainty surrounding fintech, the last thing they want is inaccurate data.

  Matomo is the reliable, accurate alternative to Google Analytics that uses no data sampling whatsoever. You get 100% access to your web analytics data, so you can base every decision on reliable insights. With Matomo, you can access between 20% and 40% more data compared to Google Analytics.

  

  With Matomo, you can confidently unlock the full picture of your marketing efforts and give potential investors insights they can trust.

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  4. Reduce onboarding dropouts with marketing automation

  Onboarding dropouts kill your chance of getting any return on your customer acquisition cost. You also miss out on developing a long-term relationship with users who fail to complete the onboarding process – a hit on immediate ROI and, potentially, long-term profits.

  The onboarding process also defines the first impression for customers and sets a precedent for their ongoing experience.

  An engaging onboarding experience converts more potential customers into active users and sets them up for repeat engagement and valuable actions.

  Example : Maxio reduces onboarding time by 30% with GUIDEcx

  Onboarding optimisation specialists, GUIDEcx helped Maxio cut six weeks off their onboarding times – a 30% reduction.

  

  With a shorter onboarding schedule, more customers are committing to close the deal during kick-off calls. Meanwhile, by increasing automated tasks by 20%, the company has unlocked a 40% increase in capacity, allowing it to handle more customers at any given time and multiplying its capacity to generate revenue.

  5. Increase the value in TTFV with personalisation

  Time to first value (TTFV) is a key metric for onboarding optimisation, but some actions are more valuable than others. By personalising the experience for new users, you can increase the value of their first action, increasing motivation to continue using your fintech product/service.

  The onboarding process is an opportunity to learn more about new customers and deliver the most rewarding user experience for their particular needs.

  Example : Betterment helps users put their money to work right away

  Betterment has implemented a quick, personalised onboarding system instead of the typical email signup process. The app wants to help new customers put their money to work right away, optimising for the first transaction during onboarding itself.

  

  It personalises the experience by prompting new users to choose their goals, set up the right account for them, and select the best portfolio to achieve their goals. They can complete their first investment within a matter of minutes and professional financial advice is only ever a click away.

  Optimise account signups with Matomo

  If you want to create and optimise a signup process like Betterment, you need an analytics system with a complete conversion rate optimisation (CRO) toolkit. 

  

  Matomo includes all the CRO features you need to optimise user experience and increase signups. With heatmaps, session recordings, form analytics, and A/B testing, you can make data-driven decisions with confidence.

  Try Matomo for Free

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  6. Use gamification to drive product engagement

  Gamification can create a more engaging experience and increase motivation for customers to continue using a product. The key is to reward valuable actions, engagement time, goal completions, and the small objectives that build up to bigger achievements.

  Gamification is most effective when used to help individuals achieve goals they’ve set for themselves, rather than the goals of others (e.g., an employer). This helps explain why it’s so valuable to fintech experience and how to implement effective gamification into products and services.

  Example : Credit Karma gamifies personal finance

  Credit Karma helps users improve their credit and build their net worth, subtly gamifying the entire experience.

  

  Users can set their financial goals and link all of their accounts to keep track of their assets in one place. The app helps users “see your wealth grow” with assets, debts, and investments all contributing to their next wealth as one easy-to-track figure.

  

  7. Personalise loyalty programs for retention and CLV

  Loyalty programs tap into similar psychology as gamification to motivate and reward engagement. Typically, the key difference is that – rather than earning rewards for themselves – you directly reward customers for their long-term loyalty.

  That being said, you can implement elements of gamification and personalisation into loyalty programs, too. 

  Example : Bank of America’s Preferred Rewards

  Bank of America’s Preferred Rewards program implements a tiered rewards system that rewards customers for their combined spending, saving, and borrowing activity.

  

  The program incentivises all customer activity with the bank and amplifies the rewards for its most active customers. Customers can also set personal finance goals (e.g., saving for retirement) to see which rewards benefit them the most.

  Conclusion

  Fintech marketing needs to catch up with the new priorities of investors in 2024. The pre-pandemic buzz is over, and investors remain cautious as regulatory scrutiny intensifies, security breaches mount up, and the market limps back into recovery.

  To win investor and consumer trust, fintech companies need to drop the growth-at-all-costs mindset and switch to a marketing philosophy of long-term profitability. This is what investors want in an unstable market, and it’s certainly what customers want from a company that handles their money.

  Unlock the full picture of your marketing efforts with Matomo’s robust features and accurate reporting. Trusted by over 1 million websites, Matomo is chosen for its compliance, accuracy, and powerful features that drive actionable insights and improve decision-making.

   Start your free 21-day trial now. No credit card required.

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• GA360 vs GA4 : Key Differences and Challenges

  20 mai 2024, par Erin

  While the standard Universal Analytics (UA) was sunset for free users in July 2023, Google Analytics 360 (GA360) users could postpone the switch to GA4 for another 12 months. But time is running out. As July is rapidly approaching, GA360 customers need to prepare for the switch to Google Analytics 4 (GA4) or another solution. 

  This comparison post will help you understand the differences between GA360 vs. GA4. We’ll dive beneath the surface, examining each solution’s privacy implications and their usability, features, new metrics and measurement methods.

  What is Google Analytics 4 (Standard) ?

  GA4 is the latest version of Google Analytics, succeeding Universal Analytics. It was designed to address privacy issues with Universal Analytics, which made compliance with privacy regulations like GDPR difficult.

  It completely replaced Universal Analytics for free users in July 2023. GA4 Standard features many differences from the original UA, including :

  • Tracking and analysis are now events-based.
  • Insights are primarily powered by machine learning. (There are fewer reports and manual analysis tools).
  • Many users find the user interface to be too complex compared to Universal Analytics.

  The new tracking, reports and metrics already make GA4 feel like a completely different web analytics platform. The user interface itself also includes notable changes in navigation and implementation. These changes make the transition hard for experienced analysts and digital marketers alike. 

  For a more in-depth look at the differences, read our comparison of Google Analytics 4 and Universal Analytics.

  What is Google Analytics 360

  Google Analytics 360 is a paid version of Google Analytics, mostly aimed at enterprises that need to analyse a large amount of data.

  It significantly increases standard limits on data collection, sampling and processing. It also improves data granularity with more custom events and dimensions.

  Transitioning from Universal Analytics 360 to GA4 360

  You may still use the Universal Analytics tag and interface if you’ve been a Google Analytics 360 customer for multiple years. However, access to Universal Analytics 360 will be discontinued on July 1, 2024. Unlike the initial UA sunset (free version), you won’t be able to access the interface or your data after that, so it will be deleted.

  That means you will have to adapt to the new GA4 user interface, reports and metrics before the sunset or find an alternative solution.

  What is the difference between GA4 360 and free GA4 ?

  The key differences between GA4 360 and free GA4 are higher data limits, enterprise support, uptime guarantees and more robust administrative controls.

  

  GA4 offers most of the same features across the paid and free versions, but there are certain limits on data sampling, data processing and integrations. With the free version, you also can’t define as detailed events using event parameters as you can with GA4 360.

  Higher data collection, accuracy, storage and processing limits

  The biggest difference that GA4 360 brings to the table is more oomph in data collection, accuracy and analysis.

  You can collect more specific data (with 100 event parameters instead of 25 for custom metrics). GA4 360 lets you divide users using more custom dimensions based on events or user characteristics. Instead of 50 per property, you get up to 125 per property.

  And with up to 400 custom audiences, 360 is better for companies that heavily segment their users. More audiences, events and metrics per property mean more detailed insights.

  Sampling limits are also of a completely different scale. The max sample size in GA4 360 is 100x the free version of GA4, with up to 1 billion events per query. This makes analysis a lot more accurate for high-volume users. A slice of 10 million events is hardly representative if you have 200 million monthly events.

  Finally, GA4 360 lets you store all of that data for longer (up to 50 months vs up to 14 months). While new privacy regulations demand that you store user data only for the shortest time possible, website analytics data is often used for year-over-year analysis.

  Enterprise-grade support and uptime guarantees

  Because GA360 users are generally enterprises, Google offers service-level agreements for uptime and technical support response times.

  • Tracking : 99.9% uptime guarantee
  • Reporting : 99% uptime guarantee
  • Data processing : within 4 hours at a 98% uptime guarantee

  The free version of GA4 includes no such guarantees and limited access to professional support in the first place.

  Integrations

  GA4 360 increases limits for BigQuery and Google Ads Manager exports.

  

  The standard limits in the free version are 1 million events per day to BigQuery. In GA4 360, this is increased to billions of events per day. You also get up to 400 audiences for Search Ads 360 instead of the 100 limit in standard GA4.

  Roll-up analytics for agencies and enterprises

  If you manage a wide range of digital properties, checking each one separately isn’t very effective. You can export the data into a tool like Looker Studio (formerly Google Data Studio), but this requires extra work.

  With GA360, you can create “roll-up properties” to analyse data from multiple properties in the same space. It’s the best way to analyse larger trends and patterns across sites and apps.

  Administration and user access controls

  Beyond roll-up reporting, the other unique “advanced features” found in GA360 are related to administration and user access controls.

  

  First, GA360 lets you create custom user roles, giving different access levels to different properties. Sub-properties and roll-up properties are also useful tools for data governance purposes. They make it easier to limit access for specific analysts to the area they’re directly working on.

  You can also design custom reports for specific roles and employees based on their access levels.

  Pricing 

  While GA4 is free, Google Analytics 360 is priced based on your traffic volume. 

  With the introduction of GA4, Google implemented a revised pricing model. For GA4 360, pricing typically begins at USD $50,000/year which covers up to 25 million events per month. Beyond this limit, costs increase based on data usage, scaling accordingly.

  What’s not different : the interface, metrics, reports and basic features

  GA4 360 is the same analytics tool as the free version of GA4, with higher usage limits and a few enterprise features. You get more advanced tracking capabilities and more accurate analysis in the same GA4 packaging.

  If you already use and love GA4 but need to process more data, that’s great news. But if you’re using UA 360 and are hesitant to switch to the new interface, not so much. 

  Making the transition from UA to GA4 isn’t easy. Transferring the data means you need to figure out how to work with the API or use Google BigQuery.

  Plus, you have to deal with new metrics, reports and a new interface. For example, you don’t get to keep your custom funnel reports. You need to use “funnel explorations.”

  Going from UA to GA4 can feel like starting from scratch in a completely new web analytics tool.

  Which version of Google Analytics 4 is right for you ?

  Standard GA4 is a cost-effective web analytics option, but it’s not without its problems :

  • If you’re used to the UA interface, it feels clunky and difficult to analyse.
  • Data sampling is prevalent in the free version, leading to inaccuracies that can negatively affect decision-making and performance.

  And that’s just scratching the surface of common GA4 issues.

  Google Analytics 4 360 is a more reliable web analytics solution for enterprises. However, it suffers from many issues that made the GA4 transition painful for many free UA users last year.

  • You need to rebuild reports and adjust to the new complex interface.
  • To transfer historical data, you must use spreadsheets, the API, or BigQuery.

  You will still lose some of the data due to changes to the metrics and reporting.

  What if neither option is right for you ? Key considerations for choosing a Google Analytics alternative

  Despite what Google would like you to think, GA4 isn’t the only option for website analytics in 2024 — far from it. For companies that are used to UA 360, the right alternative can offer unique benefits to your company.

  Privacy regulations and future-proofing your analytics and marketing

  Although less flagrant than UA, GA4 is still in murky waters regarding compliance with GDPR and other privacy regulations. 

  And the issue isn’t just that you can get fined (which is bad enough). As part of a ruling, you may be ordered to change your analytics platform and protocol, which can completely disrupt your marketing workflow.

  When most marketing teams rely on web analytics to judge the ROI of their campaigns, this can be catastrophic. You may even have to pause campaigns as your team makes the adjustments.

  Avoid this risk completely by going with a privacy-friendly alternative.

  Features beyond basic web analytics

  To understand your users, you need to look at more than just events and conversions.

  That’s why some web analytics solutions have built-in behavioural analytics tools. Features like heatmaps (a visual pattern of popular clicks, scrolling and cursor movement) can help you understand how users interact with specific pages.

  

  Matomo allows you to consolidate behavioural analytics and regular web analytics into a single platform. You don’t need separate tools and subscriptions for heatmaps, session recordings, from analytics, media analytics and A/B testing. You can do all of this with Matomo.

  With insights about visits, sales, conversions, and usability in the same place, it’s a lot easier to improve your website.

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  Usability and familiar metrics

  The move to event tracking means new metrics, reports and tools. So, if you’re used to Universal Analytics, it can be tricky to transition to GA4. 

  But there’s no need to start from zero, learning to work with a brand-new interface. Many competing web analytics platforms offer familiar reports and metrics — ones your team has gotten used to. This will help you speed up the time to value with a shorter learning curve.

  Why Matomo is a better option than GA4 360 for UA 360 users

  Matomo offers privacy-friendly tracking, built from the ground up to comply with regulations — including IP anonymisation and DoNotTrack settings. You also get 100% ownership of the data, which means we will never use your data for our own profit (unlike Google and other data giants).

  This is a big deal, as breaking GDPR rules can lead to fines of up to 4% of your annual revenue. At the same time, you’ll also future-proof your marketing workflow by choosing a web analytics provider built with privacy regulations in mind.

  Plus, for legacy UA 360 users, the Matomo interface will also feel a lot more intuitive and familiar. Matomo also provides marketing attribution models you know, like first click, which GA4 has removed.

  Finally, you can access various behavioural analytics tools in a single platform — heatmaps, session recordings, form analytics, A/B testing and more. That means you don’t need to pay for separate solutions for conversion rate optimisation efforts.

  And the transition is smooth. Matomo lets you import Universal Analytics data and offers ready-made Google Ads integration and Looker Studio Connector.

  Join over 1 million websites that choose Matomo as their web analytics solution. Try it free for a 21-days. No credit card required.

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• 10 Customer Segments Examples and Their Benefits

  9 mai 2024, par Erin

  Now that companies can segment buyers, the days of mass marketing are behind us. Customer segmentation offers various benefits for marketing, content creation, sales, analytics teams and more. Without customer segmentation, your personalised marketing efforts may fall flat. 

  According to the Twilio 2023 state of personalisation report, 69% of business leaders have increased their investment in personalisation. There’s a key reason for this — customer retention and loyalty directly benefit from personalisation. In fact, 62% of businesses have cited improved customer retention due to personalisation efforts. The numbers don’t lie. 

  Keep reading to learn how customer segments can help you fine-tune your personalised marketing campaigns. This article will give you a better understanding of customer segmentation and real-world customer segment examples. You’ll leave with the knowledge to empower your marketing strategies with effective customer segmentation. 

  What are customer segments ?

  Customer segments are distinct groups of people or organisations with similar characteristics, needs and behaviours. Like different species of plants in a garden, each customer segment has specific needs and care requirements. Customer segments are useful for tailoring personalised marketing campaigns for specific groups.

  Personalised marketing has been shown to have significant benefits — with 56% of consumers saying that a personalised experience would make them become repeat buyers. 

  Successful marketing teams typically focus on these types of customer segmentation :

  

  1. Geographic segmentation : groups buyers based on their physical location — country, city, region or climate — and language.
  2. Purchase history segmentation : categorises buyers based on their purchasing habits — how often they make purchases — and allows brands to distinguish between frequent, occasional and one-time buyers. 
  3. Product-based segmentation : groups buyers according to the products they prefer or end up purchasing. 
  4. Customer lifecycle segmentation : segments buyers based on where they are in the customer journey. Examples include new, repeat and lapsed buyers. This segmentation category is also useful for understanding the behaviour of loyal buyers and those at risk of churning. 
  5. Technographic segmentation : focuses on buyers’ technology preferences, including device type, browser type, and operating system. 
  6. Channel preference segmentation : helps us understand why buyers prefer to purchase via specific channels — whether online channels, physical stores or a combination of both. 
  7. Value-based segmentation : categorises buyers based on their average purchase value and sensitivity to pricing, for example. This type of segmentation can provide insights into the behaviours of price-conscious buyers and those willing to pay premium prices. 

  Customer segmentation vs. market segmentation

  Customer segmentation and market segmentation are related concepts, but they refer to different aspects of the segmentation process in marketing. 

  Market segmentation is the broader process of dividing the overall market into homogeneous groups. Market segmentation helps marketers identify different groups based on their characteristics or needs. These market segments make it easier for businesses to connect with new buyers by offering relevant products or new features. 

  On the other hand, customer segmentation is used to help you dig deep into the behaviour and preferences of your current customer base. Marketers use customer segmentation insights to create buyer personas. Buyer personas are essential for ensuring your personalised marketing efforts are relevant to the target audience. 

  10 customer segments examples

  Now that you better understand different customer segmentation categories, we’ll provide real-world examples of how customer segmentation can be applied. You’ll be able to draw a direct connection between the segmentation category or categories each example falls under.

  One thing to note is that you’ll want to consider privacy and compliance when you are considering collecting and analysing types of data such as gender, age, income level, profession or personal interests. Instead, you can focus on these privacy-friendly, ethical customer segmentation types :

  1. Geographic location (category : geographic segmentation)

  The North Face is an outdoor apparel and equipment company that relies on geographic segmentation to tailor its products toward buyers in specific regions and climates. 

  For instance, they’ll send targeted advertisements for insulated jackets and snow gear to buyers in colder climates. For folks in seasonal climates, The North Face may send personalised ads for snow gear in winter and ads for hiking or swimming gear in summer. 

  The North Face could also use geographic segmentation to determine buyers’ needs based on location. They can use this information to send targeted ads to specific customer segments during peak ski months to maximise profits.

  2. Preferred language (category : geographic segmentation)

  Your marketing approach will likely differ based on where your customers are and the language they speak. So, with that in mind, language may be another crucial variable you can introduce when identifying your target customers. 

  Language-based segmentation becomes even more important when one of your main business objectives is to expand into new markets and target international customers — especially now that global reach is made possible through digital channels. 

  Coca-Cola’s “Share a Coke” is a multi-national campaign with personalised cans and bottles featuring popular names from countries around the globe. It’s just one example of targeting customers based on language.

  3. Repeat users and loyal customers (category : customer lifecycle segmentation)

  Sephora, a large beauty supply company, is well-known for its Beauty Insider loyalty program. 

  It segments customers based on their purchase history and preferences and rewards their loyalty with gifts, discounts, exclusive offers and free samples. And since customers receive personalised product recommendations and other perks, it incentivises them to remain members of the Beauty Insider program — adding a boost to customer loyalty.

  By creating a memorable customer experience for this segment of their customer base, staying on top of beauty trends and listening to feedback, Sephora is able to keep buyers coming back.

  

  4. New customers (category : customer lifecycle segmentation)

  Subscription services use customer lifecycle segmentation to offer special promotions and trials for new customers. 

  HBO Max is a great example of a real company that excels at this strategy : 

  They offer 40% savings on an annual ad-free plan, which targets new customers who may be apprehensive about the added monthly cost of a recurring subscription.

  This marketing strategy prioritises fostering long-term customer relationships with new buyers to avoid high churn rates. 

  5. Cart abandonment (category : purchase history segmentation)

  With a rate of 85% among US-based mobile users, cart abandonment is a huge issue for ecommerce businesses. One way to deal with this is to segment inactive customers and cart abandoners — those who showed interest by adding products to their cart but haven’t converted yet — and send targeted emails to remind them about their abandoned carts.

  E-commerce companies like Ipsy, for example, track users who have added items to their cart but haven’t followed through on the purchase. The company’s messaging often contains incentives — like free shipping or a limited-time discount — to encourage passive users to return to their carts. 

  Research has found that cart abandonment emails with a coupon code have a high 44.37% average open rate. 

  6. Website activity (category : technographic segmentation)

  It’s also possible to segment customers based on website activity. Now, keep in mind that this is a relatively broad approach ; it covers every interaction that may occur while the customer is browsing your website. As such, it leaves room for many different types of segmentation. 

  For instance, you can segment your audience based on the pages they visited, the elements they interacted with — like CTAs and forms — how long they stayed on each page and whether they added products to their cart. 

  Matomo’s Event Tracking can provide additional context to each website visit and tell you more about the specific interactions that occur, making it particularly useful for segmenting customers based on how they spend their time on your website. 

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  Amazon segments its customers based on browsing behaviour — recently viewed products and categories, among other things — which, in turn, allows them to improve the customer’s experience and drive sales.

  7. Traffic source (category : channel segmentation) 

  You can also segment your audience based on traffic sources. For example, you can determine if your website visitors arrived through Google and other search engines, email newsletters, social media platforms or referrals. 

  In other words, you’ll create specific audience segments based on the original source. Matomo’s Acquisition feature can provide insights into five different types of traffic sources — search engines, social media, external websites, direct traffic and campaigns — to help you understand how users enter your website.

  You may find that most visitors arrive at your website through social media ads or predominantly discover your brand through search engines. Either way, by learning where they’re coming from, you’ll be able to determine which conversion paths you should prioritise and optimise further. 

  8. Device type (category : technographic segmentation)

  Device type is customer segmentation based on the devices that potential customers may use to access your website and view your content. 

  It’s worth noting that, on a global level, most people (96%) use mobile devices — primarily smartphones — for internet access. So, there’s a high chance that most of your website visitors are coming from mobile devices, too. 

  However, it’s best not to assume anything. Matomo can detect the operating system and the type of device — desktop, mobile device, tablet, console or TV, for example. 

  By introducing the device type variable into your customer segmentation efforts, you’ll be able to determine if there’s a preference for mobile or desktop devices. In return, you’ll have a better idea of how to optimise your website — and whether you should consider developing an app to meet the needs of mobile users.

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  9. Browser type (category : technographic segmentation)

  Besides devices, another type of segmentation that belongs to the technographic category and can provide valuable insights is browser-related. In this case, you’re tracking the internet browser your customers use. 

  Many browser types are available — including Google Chrome, Microsoft Edge, Safari, Firefox and Brave — and each may display your website and other content differently. 

  So, keeping track of your customers’ preferred choices is important. Otherwise, you won’t be able to fully understand their online experience — or ensure that these browsers are displaying your content properly. 

  

  10. Ecommerce activity (category : purchase history, value based, channel or product based segmentation) 

  Similar to website activity, looking at ecommerce activity can tell your sales teams more about which pages the customer has seen and how they have interacted with them. 

  With Matomo’s Ecommerce Tracking, you’ll be able to keep an eye on customers’ on-site behaviours, conversion rates, cart abandonment, purchased products and transaction data — including total revenue and average order value.

  Considering that the focus is on sales channels — such as your online store — this approach to customer segmentation can help you improve the sales experience and increase profitability. 

  Start implementing these customer segments examples

  With ever-evolving demographics and rapid technological advancements, customer segmentation is increasingly complex. The tips and real-world examples in this article break down and simplify customer segmentation so that you can adapt to your customer base. 

  Customer segmentation lays the groundwork for your personalised marketing campaigns to take off. By understanding your users better, you can effectively tailor each campaign to different segments. 

  If you’re ready to see how Matomo can elevate your personalised marketing campaigns, try it for free for 21 days. No credit card required.

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