Recherche avancée

Sur d’autres sites (6200)

• 7 Best Marketing Attribution Software in 2024

  22 février 2024, par Erin

  It can be hard to accurately track the impact of your marketing efforts across marketing channels and campaigns. That’s where marketing attribution software comes in. 

  It goes beyond basic web analytics solutions that just look at the final click. Instead, it shows how different channels, content, and ads are performing at every step of the buyer’s journey, which gives a more accurate picture than just focusing on the last click.

  In this guide, we’ll cover the basics of marketing attribution, list the top marketing attribution software and explain how the issue of privacy is transforming the web analytics industry.

  What is marketing attribution ?

  Marketing attribution is the process of assigning credit to each touchpoint in a buyer’s journey that leads to a desired action (such as a conversion or sale) in order to understand the effectiveness of various marketing channels and campaigns in influencing the customer’s decision-making process.

  Marketers use software tools like website analytics to to track and analyse customer interactions across different touchpoints, allowing them to attribute conversions or sales to specific marketing efforts and optimise their strategies and budgets accordingly.

  Why is marketing attribution so important ?

  If you don’t track your campaigns correctly, it’s easy to spend thousands (or even millions) in an ineffective way. A 2022 survey by Australian marketing agency Next&Co revealed their clients wasted AU$5.46 billion in ineffective ad spend.

  

  That’s 41% of all the ad spend tracked by Next&Co in 2022. A wasted marketing spend percentage this high isn’t exactly a recipe for a high marketing return on investment (ROI). And yet, it’s the average.

  Why is that ? 

  Most companies don’t actively track the results of their marketing campaigns actively enough.

  By improving your marketing attribution, you can determine which channels, ads, and campaigns work and which don’t. Then, you can move the budget from ineffective channels to effective ones.

  Even if you can only identify half of your wastage, this could be 20% or more of your total spend. Just imagine what your bottom line would look like if your marketing budget were 20% more effective.

  That’s the power that marketing attribution, when done right, brings to the table. It’s the road to a higher marketing ROI.

  Common marketing attribution models and how they’re different 

  The default model for attributing completed goals in most analytics tools is either the last interaction or the last non-direct interaction.

  However, some multi-touch models can help you get a more holistic view of the impact of your marketing efforts.

  

  • Last interaction model : attributes the conversion to the final interaction or referring source (campaign or ad).
  • Last non-direct interaction model : attributes the conversion to the final touchpoint that was not a direct visit to your website. (For example, if a search ad took them to a product page, the user bookmarked it and returned directly the next day to finish the purchase. The credit would go to the search ad as it’s the last non-direct touchpoint.)
  • First interaction model : attributes the conversion to the first referring event alone.
  • Linear model : gives equal value to every touchpoint throughout the customer journey. 
  • Time decay model : gives more value to touchpoints the closer they were to the actual sale.
  • Position-based model : gives more value to the first and last touchpoints — often 40% each, while splitting 20% among the rest.

  You can read our guide dedicated to marketing attribution models for more details on these models.

  Types of marketing attribution software and the impact of privacy regulations

  Until recently, digital advertising was the “scientific” advertisers’ utopia. Everything could be measured, with cookies from giants like Google and Facebook stalking every user across the web.

  But with the advent of regulations like GDPR and the CCPA, you can no longer blindly trust Google Analytics or the Meta Pixel without consequences.

  Multi-channel attribution tools with third-party cookies and GDPR

  Google, Meta, and other companies used to track and combine user data from their own platforms and websites across the web that installed their tags. These third-party cookies have long been under fire and have caused several GDPR fines.

  

  The alternative : analytics platforms with first-party cookies

  In a post-GDPR digital marketing landscape, a compliant-by-default web analytics platform like Matomo is a more reliable and accurate alternative.

  Plus, with a platform like Matomo, you don’t need to rely on data from digital advertising platforms like Facebook Ads and Google Ads. You can accurately track referral sources using our campaign tracking parameters.

  7 best marketing attribution software in 2024

  Below is the list of our favourite marketing attribution tools in 2024. If you find and use one that suits your needs correctly, you can quickly boost your marketing performance.

  1. Matomo — Accurate and easiest to set up for marketing attribution

  Matomo is a privacy-friendly web analytics suite that empowers you to accurately attribute marketing efforts and gain valuable insights while prioritising user privacy and compliance.

  Matomo integrates with e-commerce platforms like WooCommerce and Magenta. That makes it easy for B2C marketing teams to track the revenue impact of their campaigns.

  

  You can also compare a variety of attribution models against each other. B2B teams can use our API to integrate Matomo with their CRM.

  Pros :

  • Relies on first-party cookies for tracking, ensuring accurate data collection and attribution of user actions
  • Includes additional features like Heatmaps, Session Recordings, Form Analytics, A/B Testing, and more
  • Easy to set up and use
  • Features most common multi-touch attribution models

  Cons :

  • Limited to owned channels (website and e-commerce store) due to first-party cookies and data (but you can integrate other data sources through a CRM)

  Pricing

  The self-hosted version is free. The cloud hosted version starts at $19 per month and includes a 21-day free trial. No credit card requierd. 

  Try Matomo for Free

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

  Start for free

  No credit card required

  2. WhatConverts — Great option for leads-based businesses with high ad spend

  WhatConverts is a marketing attribution tool with a focus on lead tracking. With most web analytics setups, it adds call and text tracking to the typical form-only tracking.

  

  Pros :

  • Reliable call and text tracking
  • Revenue attribution to specific leads (and, by extension, campaigns and ads)

  Cons :

  • Focused exclusively on leads — little utility for e-commerce companies 

  Pricing

  The cheapest plan starts at $30/month but does not include analytics integrations or form tracking. To access this and advanced flow tracking and attribution features, you need the Elite plan, which starts at $160/month.

  3. HubSpot Marketing Hub — Ideal CRM for larger B2B companies

  HubSpot is a marketing CRM with attribution features for tracking and analysis.

  

  The platform is very broad — encompassing CRM, email automation and other tools — which makes it challenging to use effectively. The price tag is also quite steep for smaller companies and marketing teams.

  Pros :

  • Concretely tracks revenue to multiple different touchpoints and marketing channels
  • Includes several different multi-touch attribution models
  • Allows offline conversion tracking

  Cons :

  • The price point is too high for smaller teams
  • Cam be difficult to set up effectively

  Pricing

  Since marketing attribution is only included in HubSpot Marketing Hub’s Professional and Enterprise plans, pricing starts at $800/month (paid annually). If you commit for a year but pay monthly, the price is $890/month for the professional plan. This goes up with additional add-ons and as your contacts increase as well. 

  4. ActiveCampaign — Good CRM option for small B2B companies

  ActiveCampaign is a CRM and marketing automation platform that can help you trace leads and revenue back to their source.

  

  Although it has a similar scope of features to HubSpot, it is more affordable and slightly easier to use for beginners.

  Pros :

  • Tracks sales revenue back to specific marketing touchpoints
  • Powerful marketing automation features

  Cons :

  • B2B companies may need to purchase two plans, one ActiveCampaign marketing and one CRM.

  Pricing

  Unlike HubSpot, ActiveCampaign offers a much more affordable plan, starting at $29/month billed annually (for up to 1,000 contacts). The marketing and sales CRM bundle starts at $93/month with up to five users.

  5. Salesforce Data Cloud for Marketing — Ideal CRM for enterprises

  Salesforce is a robust and feature-rich CRM that many enterprises rely on for their sales teams.

  

  That makes Salesforce’s marketing attribution platform a logical choice for existing Salesforce users.

  Pros :

  • Uses prospect and sales data from CRM to attribute revenue
  • Revenue prediction analytics
  • Lead scoring to help your sales team focus on high-value leads

  Cons :

  • Difficult to set up and use
  • Clunky and aged user interface
  • Relatively high price point

  Pricing

  The limited Marketing Cloud Account Engagement Growth plan starts at $1,250/month, billed annually. To access advanced cross-channel journeys, you need the Pro plan, which starts at $2,750 monthly.

  6. Terminus — Great for account-based marketing

  If your marketing team uses an account-based marketing (ABM) approach, Terminus might be the right option for you.

  

  It offers ABM tools like target account event tracking and revenue attribution tools for your marketing campaigns.

  Pros :

  • Advanced multi-channel revenue attribution tools with a wide range of reports
  • Track intent touchpoints back to target accounts
  • Reliable revenue predictions help you focus your marketing activities

  Cons :

  • Complex and difficult to set up, understand and use effectively
  • Lacks native integrations with many common advertising platforms and analytics tools

  Pricing

  Terminus offers no standard pricing plans. You must contact their sales team for a custom quote based on your needs.

  7. Adobe Analytics — An analytics for enterprises

  Adobe Analytics is part of the Adobe Experience Cloud, with plenty of big data analysis tools for enterprises. Although the platform is quite powerful, it is equally complex and difficult to use. The price point is also prohibitive for many smaller companies.

  

  Pros :

  • Very extensive reporting tools
  • Predictive analytics give you solid leading indicator for future campaign performance
  • Track multiple digital touchpoints across the entire customer journey

  Cons :

  • Like Google Analytics, Adobe Analytics aggregates your visitor data by default, making compliant “consent-free tracking” — tracking user actions without asking for consent — impossible according to GDPR. (See more differences in Matomo’s comparison against Adobe Analytics and Google Analytics.)
  • Prohibitively expensive for most smaller companies
  • Very steep learning curve for setting up and using it correctly

  Pricing

  Adobe Analytics uses usage-based pricing — which means they adjust the pricing based on the traffic volume to your website. Still, their lower price points aren’t exactly SMB-friendly — multiple sources put Adobe’s lowest starting price point at $2,000–2,500 per month.

  Get accurate marketing attribution with Matomo (without privacy concerns)

  Matomo allows you to do marketing attribution effectively and accurately without compromising your users’ privacy. By default, we only use first-party cookies and offer consent-free tracking – meaning no more annoying cookie consent banners (excluding in Germany and the UK).

  If you want to boost your marketing performance without disregarding your users’ privacy, get started with our 21-day free trial. No credit card required. It’s time to make more informed decisions about your marketing campaigns.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

  Your email address
  

  Your website address
  

  Your Analytics subdomain will be .matomo.cloud (change)

  Choose your analytics subdomain
  

  .matomo.cloud

  I accept the terms and conditions and data processing agreement (DPA)

  
  Your information will be used to create an account on our cloud service. For more information please consult our privacy policy.
  
  
  

  Start improving your websites now

  

• SEO for Financial Services : The Ultimate Guide

  26 juin 2024, par Erin

  You know that having a digital marketing strategy is crucial for helping your financial services business capture the attention and trust of potential customers and thrive in an increasingly competitive digital landscape.

  The question is — what’s the best way to go about improving your ranking in SERPs and driving organic traffic to your website ? 

  That’s where SEO strategies for financial services come into play. 

  This article will cover everything your company needs to know about SEO for financial services — from the unique challenges you’ll face to the proven tips and strategies you can implement to boost your ranking in SERPs. 

  What is SEO for financial services ? 

  SEO — short for search engine optimisation — refers to optimising your content and website for search engines, particularly Google. 

  The main goal of an SEO strategy is to make your site search-engine-friendly, show that you’re a trusted source and increase the likelihood of appearing in SERPs when potential customers look up relevant keywords — ultimately driving organic visibility and traffic. 

  Now, when it comes to evaluating the success of your financial services SEO strategy, there are certain key performance indicators (KPIs) you should keep track of — including : 

  • SEO ranking, or the position your web pages show up in SERPs for specific search terms (the terms and phrases identified during keyword research) 
  • SEO Score, which shows a website’s overall SEO health and indicates how well it will rank in SERPs
  • Impressions, or the number of times users saw your pages when they looked up relevant search terms 
  • Organic traffic, or the number of people that visit your website via search engines
  • Engagement metrics, such as time on page, pages per session, and bounce rate 
  • Conversion rates from website traffic, including both “hard” conversions (lead generation and purchases) and “soft” conversions (such as newsletter subscriptions) 

  It’s important to note that the financial services industry is incredibly competitive — especially given the large-scale digital transformations in the financial sector and the rise of fintech companies. 

  According to a 2022 report, the global market for financial services was valued at $25.51 trillion. Moreover, it’s expected to grow at a compound annual growth rate of 9.7%, reaching $58.69 trillion by 2031.

  Importance and challenges of financial services SEO 

  The financial services industry is changing rapidly, mainly driven by globalisation, innovation, shifting economies, and compliance risks. It’s crucial for financial service companies to develop effective SEO strategies that align with the opportunities and challenges unique to this sector. 

  Certain benefits of a well-executed SEO strategy, namely, better search engine rankings, driving more search traffic, delivering a better user experience, and maximising ROI and promoting business growth, are “universal.” 

  

  Financial services SEO efforts can provide a number of benefits. It can help you : 

  • Improve lead generation and customer acquisition ; the more search traffic you get, the higher the chances of converting visitors into potential clients 
  • Build a strong online presence and brand awareness, which comes as a result of increased visibility in organic search results and reaching a wider audience 
  • Increase your credibility and authority within the industry, primarily through high-quality content that shows your expertise and backlinks from authoritative websites 
  • Gain a competitive edge by analysing and outranking your main competitors 

  That said, financial services companies face some unique challenges :

  High competition : The digital arena for financial services is highly competitive, with numerous companies vying for the same business.

  YMYL (Your Money or Your Life) content : Google’s YMYL framework places higher scrutiny on financial content, demanding higher standards for experience, expertise, authoritativeness, and trustworthiness. We’ll cover this topic in greater detail shortly.

  Regulatory changes and compliance : The financial services sector is characterised by constant regulatory changes and new compliance requirements that businesses must navigate. Sometimes this makes it difficult to gather insights and market to your audience. 

  As a privacy-fist, compliant web analytics solution Matomo can provide valuable insights to support your SEO efforts. Matomo ensures compliance with privacy laws — including GDPR, CCPA and more — and provides 20-40% more comprehensive data than Google Analytics.

  Try Matomo for Free

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

  Start for free

  No credit card required

  8 proven strategies for implementing SEO for financial services 

  SEO for financial services involves a wide range of strategies — including keyword optimisation, technical SEO, content marketing, link building and other off-page SEO activities — that can help your website rank higher in SERPs. 

  Of course, it’s not just about better search rankings. It’s about attracting the right search traffic to your website — potential clients interested in your financial services.

  Here are some proven financial services SEO strategies you should implement : 

  1. Build trust and topical authority 

  Financial services content typically covers more complex topics that could impact the reader’s financial stability and well-being — or, as Google calls them, “Your Money or Your Life” topics (YMYL). As such, it’s subject to much stricter quality standards. 

  To improve your YMYL content, you’ll need to apply the E-E-A-T framework — short for “Experience, Expertise, Authority, and Trust”. 

  This is a key part of Google’s search rater guidelines for evaluating a website’s quality and credibility. 

  The E-E-A-T standards become even more relevant to financial topics such as investment strategies, financial advice, taxes, and retirement planning. 

  In that sense, the overarching goal of your content strategy should be to build customer trust by demonstrating real expertise and topical authority through in-depth educational content. 

  2. Earn reputable external links through link-building 

  You also need to monitor your off-page SEO—factors outside your website that can’t be directly controlled but can still build trust and contribute to better ranking in SERPs. 

  These include everything from social media engagement and unlinked brand mentions in blog posts, news articles, user reviews and social media discussions — to inbound links from other reputable websites in the finance industry.

  That brings us to high-quality backlinks as a significant factor for YMYL content that can improve your financial services website’s SEO performance : 

  Earning external links can improve your domain authority and reinforce your brand’s position as a reliable source in the financial services niche — which, in turn, can contribute to better search engine rankings and drive more website traffic. 

  Here are a few link-building strategies you can try : 

  • Use tools like Ahrefs and Semrush to look for reputable websites and then request for them to link to your site
  • Demonstrate your expertise and get backlinks from reputable media outlets through Help a Reporter Out (HARO) 
  • Reach out to authoritative websites that mention your company without linking to you directly and ask them to include a link to your websit

  3. Conduct an SEO audit 

  An SEO audit is a key step in developing and implementing a successful financial SEO strategy. It sets the foundation for all your future efforts — and allows you to measure progress further down the line. 

  You’ll need to perform a comprehensive SEO audit, covering both the existing content and technical aspects of your website — including : 

  • Indexing issues
  • Internal linking and site architecture 
  • Duplicate content 
  • Backlink profile 
  • Broken links 
  • Page titles and metadata 

  It’s possible to do this manually, third-party tools will allow you to dig deeper and speed up the process. Ahrefs and Screaming Frog — to name a few — can help you evaluate your website’s overall health and structure. And, with a web analytics platform like Matomo you can easily measure the success of your SEO efforts.

  But this shouldn’t be a one-time thing ; be sure to perform audits regularly — ideally every six months. 

  4. Understand your target audience

  You can’t create helpful content without learning about your customers’ needs, pain points and preferences. 

  For example, a financial service provider focusing on individuals nearing retirement would prioritise content that educates on retirement planning strategies, investment options for seniors, and tax-efficient withdrawal strategies, aiming to guide clients through the transition from saving to managing retirement funds effectively.

  In contrast, a provider targeting small business owners would emphasise content related to small business loans, funding options, and financial management advice tailored to entrepreneurs seeking to expand their businesses and navigate financial challenges effectively.

  So, before you dive into keyword research and content creation, ensure you have a deep understanding of your target audience. 

  Identifying different audience categories and developing detailed customer personas for each segment is crucial for creating content that resonates with them and aligns with their search intent. 

  Matomo’s Segmentation tool can be of huge help here. It allows you to divide your audience into smaller groups based on factors like demographics and website interactions : 

  

  In addition to that, you can : 

  • Engage with your frontline teams that interact directly with clients to gain deeper insights into prospects’ needs and concerns
  • Track social media channels and other online discussions related to the financial world and your audience
  • Gather qualitative insights from your site visitors through the Matomo Surveys plugin (questions like “What financial services are you most interested in ?” or “Are there any specific financial topics you would like us to cover in more detail ?” will help you understand your visitors better)
  • Watch out for financial trends and developments that could directly impact your audience’s needs and preferences 

  5. Identify new opportunities through keyword research 

  Comprehensive keyword research can help you identify key search terms — specific phrases that potential customers may use when looking up things related to their finances. 

  It’s best to start with a brainstorming session and assemble a list of relevant topics and core keywords. Once you have an initial list, use tools like Ahrefs and Semrush to get more keyword ideas based on your seed keywords, including : 

  • More specific long-tail keywords — and often less competitive — indicate a clearer intent to convert. For example :

  • • “low-risk investment options for retirees”
    • “financial planning for freelancers”
    • “small business loan requirements”

  • Keywords that your competitors already rank for. For instance :

  • • If a competing investment firm ranks for “best investment strategies for beginners,” targeting similar keywords can attract novice investors.
    • A competitor’s high ranking for “life insurance quotes online” suggests potential to optimise your own content around similar terms.
  • Location-specific keywords (if you have physical store locations)

  Google Search Console can provide information about the search terms you’re already ranking for — including underperforming content that may benefit from further optimisation. If you want deeper SEO insights, you can import your search keywords into Matomo. 

  While you’re at it, try Matomo’s Site Search feature, too. It will show you the exact terms and phrases visitors enter when using your website’s search bar — and you can use that information to find more content opportunities.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Of course, not all keywords are equal — and it would be impossible to target them all. Instead, prioritise keywords based on two factors : 

  • Search volume, which indicates the “popularity” of a particular query
  • Keyword difficulty, which indicates how hard it’ll be to rank for a specific term, depending on domain authority, search volume and competition 

  

  6. Find your main organic competitors 

  Besides performing an SEO audit, finding your core keywords, and researching your target market, competitor analysis is another crucial aspect of SEO for finance companies. 

  Before you start, it’s important to differentiate between your main organic search competitors and your direct industry competitors : 

  You’ll always have direct competitors — other financial services brands offering similar products and services and targeting the same audience as you.

  However, regarding search results, your financial services business won’t be in a “bubble” specifically reserved for the financial industry. Depending on the specific search queries — and the search intent behind them — SERPs could feature a wider range of online content, from niche finance blogs to news websites, and huge financial publications.

  Even if another company doesn’t offer the same services, they’re an organic competitor if you’re both ranking for the same keywords. 

  Once you determine who your main organic competitors are, you can analyse their websites to : 

  • Check how they’re getting search traffic 
  • See which types of content they’re publishing 
  • Find and fill in any potential content gaps 
  • Assess the quality of their backlink profile 
  • See if they currently have any featured snippets

  7. Consider local SEO

  According to a 2023 survey, 21% of US-based consumers report using the internet to look up local businesses daily, while another 32% do so multiple times a week. 

  Local SEO is worth investing in as a financial service provider, especially with physical locations. Prospective clients will typically look up nearby financial services when they need additional information or are ready to engage in financial planning, investment, or other financial activities.

  Here are a few suggestions on how to optimise your site for local searches : 

  • Create listings on online business directories, like Google Business Profile (previously known as Google My Business)
  • If your financial service company operates in more than one physical location, be sure to create a separate Google Business Profile for each one 
  • Identify location-specific keywords that will help you rank in local SERPs
  • Make sure that your name, address, and phone number (NAP) citations are correct and consistent 
  • Leverage positive customer reviews and testimonials as social proof

  8. Optimise technical aspects of your website 

  Technical SEO — which primarily deals with the website’s underlying structure — is another crucial factor that financial services brands must monitor. 

  It’s an umbrella term that covers a wide range of elements, including : 

  • Site speed 
  • Indexing issues 
  • Broken links, orphaned pages, improper redirects 
  • On-page optimisation 
  • Mobile responsiveness

  In 2020, Google introduced Core Web Vitals, a set of metrics that measure web page performance in three key areas — loading speed, responsiveness and visual stability. 

  Given that they’re now a part of Google’s core ranking systems, you should consider using Matomo’s SEO Web Vitals feature to monitor these crucial metrics. Here’s why :

  When technical aspects of your website — namely, site speed and mobile responsiveness — are properly optimised, you can deliver a better user experience. That’s what Google seeks to reward. 

  Plus, it can be a critical brand differentiator for your business. 

  Conclusion 

  Investing in SEO for financial services is crucial for boosting online visibility and driving organic traffic and business growth. However, one thing to keep in mind is that SEO efforts shouldn’t be a one-time thing : 

  SEO is an ongoing process, and it will take time to establish your company as a trustworthy source and see real results. 

  You can start building that trust by using a web analytics platform that offers crucial insights for improving your website’s ranking in SERPs and maintains full compliance with GDPR and other privacy regulations. 

  That’s why Matomo is trusted by more than 1 million websites around the globe. As an ethical alternative to Google Analytics that doesn’t rely on data sampling, Matomo is not only easy to use but more accurate, too — providing 20-40% more data compared to GA4. 

  Sign up for a 21-day free trial and see how Matomo can support your financial services SEO strategy. No credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

  Your email address
  

  Your website address
  

  Your Analytics subdomain will be .matomo.cloud (change)

  Choose your analytics subdomain
  

  .matomo.cloud

  I accept the terms and conditions and data processing agreement (DPA)

  
  Your information will be used to create an account on our cloud service. For more information please consult our privacy policy.
  
  
  

  Start improving your websites now

  

• Understanding Data Processing Agreements and How They Affect GDPR Compliance

  9 octobre 2023, par Erin — GDPR

  The General Data Protection Regulation (GDPR) impacts international organisations that conduct business or handle personal data in the European Union (EU), and they must know how to stay compliant.

  One way of ensuring GDPR compliance is through implementing a data processing agreement (DPA). Most businesses overlook DPAs when considering ways of maintaining user data security. So, what exactly is a DPA’s role in ensuring GDPR compliance ?

  In this article, we’ll discuss DPAs, their advantages, which data protection laws require them and the clauses that make up a DPA. We’ll also discuss the consequences of non-compliance and how you can maintain GDPR compliance using Matomo.

  What is a data processing agreement ?

  A data processing agreement, data protection agreement or data processing addendum is a contractual agreement between a data controller (a company) and a data processor (a third-party service provider.) It defines each party’s rights and obligations regarding data protection.

  A DPA also defines the responsibilities of the controller and the processor and sets out the terms they’ll use for data processing. For instance, when MHP/Team SI sought the services of Matomo (a data processor) to get reliable and compliant web analytics, a DPA helped to outline their responsibilities and liabilities.

  A DPA is one of the basic requirements for GDPR compliance. The GDPR is an EU regulation concerning personal data protection and security. The GDPR is binding on any company that actively collects data from EU residents or citizens, regardless of their location.

  As a business, you need to know what goes into a DPA to identify possible liabilities that may arise if you don’t comply with European data protection laws. For example, having a recurrent security incident can lead to data breaches as you process customer personal data.

  The average data breach cost for 2023 is $4.45 million. This amount includes regulatory fines, containment costs and business losses. As such, a DPA can help you assess the organisational security measures of your data processing methods and define the protocol for reporting a data breach.

  Why is a DPA essential for your business ?

  If your company processes personal data from your customers, such as contact details, you need a DPA to ensure compliance with data security laws like GDPR. You’ll also need a DPA to hire a third party to process your data, e.g., through web analytics or cloud storage.

  But what are the benefits of having a DPA in place ?

  

  A key benefit of signing a DPA is it outlines business terms with a third-party data processor and guarantees compliance with the relevant data privacy laws. A DPA also helps to create an accountability framework between you and your data processor by establishing contractual obligations.

  Additionally, a DPA helps to minimise the risk of unauthorised access to sensitive data. A DPA defines organisational measures that help protect the rights of individuals and safeguard personal data against unauthorised disclosure. Overall, before choosing a data processor, having a DPA ensures that they are capable, compliant and qualified.

  More than 120 countries have already adopted some form of international data protection laws to protect their citizens and their data better. Hence, knowing which laws require a DPA and how you can better ensure compliance is important.

  Which data protection laws require a DPA ?

  Regulatory bodies enact data protection laws to grant consumers greater control over their data and how businesses use it. These laws ensure transparency in data processing and compliance for businesses.

  

  The following are some of the relevant data privacy laws that require you to have a DPA :

  • UK GDPR
  • Brazil LGPD
  • EU GDPR
  • Dubai PDPA
  • Colorado CPA
  • California CCPA/CPRA
  • Virginia VCDPA
  • Connecticut DPA
  • South African POPIA
  • Thailand PDPA

  Companies that don’t adhere to these data protection obligations usually face liabilities such as fines and penalties. With a DPA, you can set clear expectations regarding data processing between you and your customers.

  Review and update any DPAs with third-party processors to ensure compliance with GDPR and the laws we mentioned above. Additionally, confirm that all the relevant clauses are present for compliance with relevant data privacy laws. 

  So, what key data processing clauses should you have in your DPA ? Let’s take a closer look in the next section.

  Key clauses in a data processing agreement

  GDPR provides some general recommendations for what you should state in a DPA.

  

  Here are the elements you should include :

  Data processing specifications

  Your DPA should address the specific business purposes for data processing, the duration of processing and the categories of data under processing. It should also clearly state the party responsible for maintaining GDPR compliance and who the data subjects are, including their location and nationality.

  Your DPA should also address the data processor and controller’s responsibilities concerning data deletion and contract termination.

  Role of processor

  Your DPA should clearly state what your data processor is responsible for and liable for. Some key responsibilities include record keeping, reporting breaches and maintaining data security.

  Other roles of your data processor include providing you with audit opportunities and cooperating with data protection authorities during inquiries. If you decide to end your contract, the data processor is responsible for deleting or returning data, depending on your agreement.

  Role of controller

  Your DPA should inform the responsibilities of the data controller, which typically include issuing processing instructions to the data processor and directing them on how to handle data processing.

  Your DPA should let you define the lawful data processes the data processor should follow and how you’ll uphold the data protection rights of individuals’ sensitive data.

  Organisational and technical specifications

  Your DPA should define specifications such as how third-party processors encrypt, access and test personal data. It should also include specifications on how the data processor and controller will maintain ongoing data security through various factors such as :

  • State of the technology : Do ‌third-party processors have reliable technology, and can they ensure data security within their systems ?
  • Costs of implementation : Does the data controller’s budget allow them to seek third-party services from industry-leading providers who can guarantee a certain level of security ?
  • Variances in users’ personal freedom : Are there privacy policies and opt-out forms for users to express how they want companies to use their sensitive data ?

  Moreover, your DPA should define how you and your data processor will ensure the confidentiality, availability and integrity of data processing services and systems.

  What are the penalties for DPA GDPR non-compliance ?

  Regulators use GDPR’s stiff fines to encourage data controllers and third-party processors to follow‌ best data security practices. One way of maintaining compliance is through drafting up a DPA with your data processor.

  The DPA should clearly outline the necessary legal requirements and include all the relevant clauses mentioned above. Understand what goes into this agreement since data protection authorities can hold your business accountable for a breach — even if a processor’s error caused it.

  Data protection authorities can issue penalties now that the GDPR is in place. For example, according to Article 83 of the GDPR, penalties for data or privacy breaches or non-compliance can amount to up to €20 million or 4% of your annual revenue.

  There are two tiers of fines : tier one and tier two. Violations related to data processors typically attract fines on the tier-one level. Tier one fines can cost your business €10 million or 2% of your company’s global revenue.

  Tier-two fines result from infringement of the right to forget and the right to privacy of your consumer. Tier-two fines can cost your business up to €20 million or 4% of your company’s global revenue.

  GDPR fines make non-compliance an expensive mistake for businesses of all sizes. As such, signing a DPA with any party that acts as a data processor for your business can help you remain GDPR-compliant.

  How a DPA can help your business remain GDPR compliant

  A DPA can help your business define and adhere to lawful data processes.

  

  So, in what other ways can a DPA help you to remain compliant with GDPR ? Let’s take a look !

  1. Assess data processor’s compliance

  Having a DPA helps ensure that the data processor you are working with is GDPR-compliant. You should check if they have a DPA and confirm the processor’s terms of service and legal basis.

  For example, if you want an alternative to Google Analytics that’s GDPR compliant, then you can opt for Matomo. Matomo features a DPA, which you can agree to when you sign up for web analytics services or later.

  2. Establish lawful data processes

  A DPA can also help you review your data processes to ensure they’re GDPR compliant. For example, by defining lawful data processes, you better understand personally identifiable information (PII) and how it relates to data privacy.

  Further, you can allow users to opt out of sharing their data. As such, Matomo can help you to enable Do Not Track preferences on your website.

  

  With this feature, users are given the option to opt in or out of tracking via a toggle in their respective browsers.

  Indeed, establishing lawful data processes helps you define the specific business purposes for collecting and processing personal data. By doing so, you get to notify your users why you need their data and get their consent to process it by including a GDPR-compliant privacy policy on your website.

  3. Anonymise your data

  Global privacy laws like GDPR and ePrivacy mandate companies to display cookie banners or seek consent before tracking visitors’ data. You can either include a cookie consent banner on your site or stop tracking cookies to follow the applicable regulations.

  Further, you can enable cookie-less tracking or easily let users opt out. For example, you can use Matomo without a cookie consent banner, exempting it from many countries’ privacy rules.

  Additionally, through a DPA, you can define organisational measures that define how you’ll anonymise all your users’ data. Matomo can help you anonymise IP addresses, and we recommend that you at least anonymise the last two bytes.

  

  As one of the few web analytics tools you can use to collect data without tracking consent, Matomo also has the French Data Protection Authority (CNIL) approval.

  4. Assess the processor’s bandwidth

  Having a DPA can help you implement data retention policies that show clear retention periods. Such policies are useful when ending a contract with a third-party service provider and determining how they should handle your data.

  A DPA also helps you ensure the processor has the necessary technology to store personal data securely. You can conduct an audit to understand possible vulnerabilities and your data processor’s technological capacity.

  5. Obtain legal counsel

  When drafting a DPA, it’s important to get a consultation on what is needed to ensure complete compliance. Obtaining legal counsel points you in the right direction so you don’t make any mistakes that may lead to non-compliance.

  Conclusion

  Businesses that process users’ data are subject to several DPA contract requirements under GDPR. One of the most important is having DPAs with every third-party provider that helps them perform data processing.

  It’s important to stay updated on GDPR requirements for compliance. As such, Matomo can help you maintain lawful data processes. Matomo gives you complete control over your data and complies with GDPR requirements.

  To get started with Matomo, you can sign up for a 21-day free trial. No credit card required.

  Disclaimer

  We are not lawyers and don’t claim to be. The information provided here is to help give an introduction to GDPR. We encourage every business and website to take data privacy seriously and discuss these issues with your lawyer if you have any concerns.