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• What Is Incrementality & Why Is It Important in Marketing ?

  26 mars 2024, par Erin

  Imagine this : you just launched your latest campaign and it was a major success.

  You blew last month’s results out of the water.

  You combined a variety of tactics, channels and ad creatives to make it work.

  Now, it’s time to build the next campaign.

  The only issue ?

  You don’t know what made it successful or how much your recent efforts impacted the results.

  You’ve been building your brand for years. You’ve built up a variety of marketing pillars that are working for you. So, how do you know how much of your campaign is from years of effort or a new tactic you just implemented ?

  The key is incrementality.

  This is a way to properly attribute the right weight to your marketing tactics.

  In this article, we break down what incrementality is in marketing, how it differs from traditional attribution and how you can calculate and track it to grow your business.

  What is incrementality in marketing ?

  Incrementality in marketing is growth that can be directly credited to a marketing effort above and beyond the success of the branding.

  It looks at how much a specific tactic positively impacted a campaign on top of overall branding and marketing strategies.

  

  For example, this could be how much a specific tactic, campaign or channel helped increase conversions, email sign-ups or organic traffic.

  The primary purpose of incrementally in marketing is to more accurately determine the impact a single marketing variable had on the success of a project.

  It removes every other factor and isolates the specific method to help marketers double down on that strategy or move on to new tactics.

  With Matomo, you can track conversions simply. With our last non-direct channel attribution system, you’ll be able to quickly see what channels are converting (and which aren’t) so you can gain insights into incrementality. 

  See why over 1 million websites choose Matomo today.

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

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  How incrementality differs from attribution

  In marketing and advertising, it’s crucial to understand what tactics and activities drive growth.

  Incrementality and attribution help marketers and business owners understand what efforts impact their results.

  But they’re not the same.

  Here’s how they differ :

  

  Incrementality explained

  Incrementality measures how much a specific marketing campaign or activity drives additional sales or growth.

  Simply put, it’s analysing the difference between having never implemented the campaign (or tactic or channel) in the first place versus the impact of the activity.

  In other words, how much revenue would you have generated this month without campaign A ?

  And how much additional revenue did you generate directly due to campaign A ?

  The reality is that dozens of factors impact revenue and growth.

  You aren’t just pouring your marketing into one specific channel or campaign at a time.

  Chances are, you’ve got your hands on several marketing initiatives like SEO, PPC, organic social media, paid search, email marketing and more.

  Beyond that, you’ve built a brand with a not-so-tangible impact on your recurring revenue.

  So, the question is, if you took away your new campaign, would you still be generating the same amount of revenue ?

  And, if you add in that campaign, how much additional revenue and growth did it directly create ?

  That is incrementality. It’s how much a campaign went above and beyond to add new revenue that wouldn’t have been there otherwise.

  So, how does attribution play into all of this ?

  Attribution explained

  Attribution is simply the process of assigning credit for a conversion to a particular marketing touchpoint.

  While incrementality is about narrowing down the overall revenue impact from a particular campaign, attribution seeks to point to a specific channel to attribute a sale.

  For example, in any given marketing campaign, you have a few marketing tactics.

  Let’s say you’re launching a limited-time product.

  You might have :

  • Paid ads via Facebook and Instagram
  • A blog post sharing how the product works
  • Organic social media posts on Instagram and TikTok
  • Email waitlist campaign building excitement around the upcoming product
  • SMS campaigns to share a limited-time discount

  So, when the time comes for the sale launch, and you generate $30,000 in revenue, what channel gets the credit ?

  Do you give credit to the paid ads on Facebook ? What about Instagram ? They got people to follow you and got them on the email waitlist.

  Do you give credit to email for reminding people of the upcoming sale ? What about your social media posts that reminded people there ?

  Or do you credit your SMS campaign that shared a limited-time discount ?

  Which channel is responsible for the sale ?

  This is what attribution is all about.

  It’s about giving credit where credit is due.

  The reason you want to attribute credit ? So you know what’s working and can double down your efforts on the high-impact marketing activities and channels.

  Leveraging incrementality and attribution together

  Incrementality and attribution aren’t competing methods of analysing what’s working.

  They’re complementary to one another and go hand in hand.

  You can (and should) use attribution and incrementality in your marketing to help understand what activities, campaigns and channels are making the biggest incremental impact on your business growth.

  Why it’s important to measure incrementality

  Incrementality is crucial to measure if you want to pour your time, money and effort into the right marketing channels and tactics.

  Here are a few reasons why you need to measure incrementality if you want to be successful with your marketing and grow your business :

  1. Accurate data

  If you want to be an effective marketer, you need to be accurate.

  You can’t blindly start marketing campaigns in hopes that you will sell many products or services.

  That’s not how it works.

  Sure, you’ll probably make some sales here and there. But to truly be effective with your work, you must measure your activities and channels correctly.

  Incrementality helps you see how each channel, tactic or campaign made a difference in your marketing.

  Matomo gives you 100% accurate data on your website activities. Unlike Google Analytics, we don’t use data sampling which limits how much data is analysed.

  

  2. Helps you to best determine the right tactics for success

  How can you plan your marketing strategy if you don’t know what’s working ?

  Think about it.

  You’ll be blindly sailing the seas without a compass telling you where to go.

  Measuring incrementality in your marketing tactics and channels helps you understand the best tactics.

  It shows you what’s moving the needle (and what’s not).

  Once you can see the most impactful tactics and channels, you can forge future campaigns that you know will work.

  3. Allows you to get the most out of your marketing budget

  Since incrementality sheds light on what’s moving your business forward, you can confidently implement your efforts on the right tactics and channels.

  Guess what happens when you start doubling down on the most impactful activities ?

  You start increasing revenue, decreasing ad spend and getting a higher return on investment.

  The result is that you will get more out of your marketing budget.

  Not only will you boost revenue, but you’ll also be able to boost profit margins since you’re not wasting money on ineffective tactics.

  4. Increase traffic

  When you see what’s truly working in your business, you can figure out what channels and tactics you should be working.

  Incrementality helps you understand not only what your best revenue tactics are but also what channels and campaigns are bringing in the most traffic.

  When you can increase traffic, you can increase your overall marketing impact.

  5. Increase revenue

  Finally, with increased traffic, the inevitable result is more conversions.

  More conversions mean more revenue.

  Incrementality gives you a vision of the tactics and channels that are converting the best.

  If you can see that your SMS campaigns are driving the best ROI, then you know that you’ll grow your revenue by pouring more into acquiring SMS leads.

  By calculating incrementality regularly, you can rest assured that you’re only investing time and money into the most impactful activities in terms of revenue generation.

  How to calculate and test incrementality in marketing

  Now that you understand how incrementality works and why it’s important to calculate, the question is : 

  How do you calculate and conduct incrementality tests ?

  Given the ever-changing marketing landscape, it’s crucial to understand how to calculate and test incrementally in your business.

  If you’re not sure how incrementality testing works, then follow these simple steps :

  

  Your first step to get an incrementality measurement is to conduct what’s referred to as a “holdout test.”

  It’s not a robust test, but it’s an easy way to get the ball rolling with incrementality.

  Here’s how it works :

  1. Choose your target audience.

  With Matomo’s segmentation feature, you can get pretty specific with your target audience, such as :

  • • Visitors from the UK
    • Returning visitors
    • Mobile users
    • Visitors who clicked on a specific ad

  2. Split your audience into two groups :

  1. • Control group (60% of the segment)
     • Test group (40% of the segment)

  3. Target the control group with your marketing tactic (the simpler the tactic, the better).

  4. Target the test group with a different marketing tactic.

  5. Analyse the results. The difference between the control and test groups is the incremental lift in results. The new marketing tactic is either more effective or not.

  6. Repeat the test with a new control group (with an updated tactic) and a new test group (with a new tactic).

  Matomo can help you analyse the results of your campaigns in our Goals feature. Set up business objectives so you can easily track different goals like conversions.

  Try Matomo for Free

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

  Start for free

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  Here’s an example of how this incrementality testing could look in real life.

  Imagine a fitness retailer wants to start showing Facebook ads in their marketing mix.

  The marketing manager decided to conduct a holdout test. If we match our example below with the steps above, this is how the holdout test might look.

  1. They choose people who’ve purchased free weights in the past as their target audience (see how that segmentation works ?).
  2. They split this segment into a control group and a test group.
  3. For this test, they direct their regular marketing campaign to the control group (60% of the segment). The campaign includes promoting a 20% off sale on organic social media posts, email marketing, and SMS.
  4. They direct their regular marketing campaign plus Facebook ads to the test group (40% of the segment).
  5. They ran the campaign for three weeks with the goal for sale conversions and noticed :

  • • The control group had a 1.5% conversion rate.
    • The test group (with Facebook ads) had a 2.1% conversion rate.
    • In this scenario, they could see the group who saw the Facebook ads convert better.
    • They created the following formula to measure the incremental lift of the Facebook ads :

  

  • • Here’s how the calculation works out : (2.1% – 1.5%) / 1.5% = 40%

  The Facebook ads had a positive 40% incremental lift in conversions during the sale.

  Incrementality testing isn’t a one-and-done process, though.

  While this first test is a great sign for the marketing manager, it doesn’t mean they should immediately throw all their money into Facebook ads.

  They should continue conducting tests to verify the initial test.

  Use Matomo to track incrementality today

  Incrementality can give you insights into exactly what’s working in your marketing (and what’s not) so you can design proven strategies to grow your business.

  If you want more help tracking your marketing efforts, try Matomo today.

  Our web analytics and behaviour analytics platform gives you firsthand data on your website visitors you can use to craft effective marketing strategies.

  Matomo provides 100% accurate data. Unlike other major web analytics platforms, we don’t do data sampling. What you see is what’s really going on in your website. That way, you can make more informed decisions for better results.

  At Matomo, we take privacy very seriously and include several advanced privacy protections to ensure you are in full control.

  As a fully compliant web analytics solution, we’re fully compliant with some of the world’s strictest privacy regulations like GDPR. With Matomo, you get peace of mind knowing you can make data-driven decisions while also being compliant. 

  If you’re ready to launch a data-driven marketing strategy today and grow your business, get started with our 21-day free trial now. No credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

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• CRO Testing : The 6-Steps for Maximising Conversion Rates

  10 mars 2024, par Erin

  It’s a nightmare every marketing manager faces. Traffic is soaring after you’ve launched new digital marketing campaigns, but conversions have barely moved.

  Sound familiar ?

  The good news is you’re not alone — loads of marketing managers struggle to get potential customers to purchase. The better news is that you can test dozens of strategies to turn around your site’s fortunes. 

  Conversion rate optimisation testing (CRO testing for short) is the name for this kind of experimentation — and it can send conversion rates and revenue soaring.

  In this article, we’ll explain CRO testing and how you can start doing it today using Matomo. 

  What is CRO Testing ? 

  CRO testing is optimising your site’s conversion funnel using a series of experiments designed to improve conversion rates.

  A CRO test can take several forms, but it usually involves changing one or more elements of your landing page. It looks something like this :

  1. You hypothesise what you expect to happen.
  2. You then run an A/B test using a dedicated CRO platform or tool.
  3. This tool will divide your site’s traffic, sending one segment to one variation and the other segment to another.
  4. The CRO tool will measure conversions, track statistical significance, and declare one variation the winner. 

  A CRO tool isn’t the only software you can use to gather data when running tests. There are several other valuable data sources, including :

  • A web analytics platform : to identify issues with your website
  • User surveys : to find out what your target audience thinks about your site
  • Heatmaps : to learn where users focus their attention
  • Session recordings : to discover how visitors browse your site

  Use as many of these features, tools, and methods as you can when brainstorming hypotheses and measuring results. After all, your CRO test is only as good as your data.

  On that note, we need to mention the importance of data accuracy when researching issues with your website and running CRO tests. If you trust a platform like Google Analytics that uses data sampling (where only a subset of data is analysed), then there’s a risk you make business decisions based on inaccurate reports.

  In practice, that could see you overestimate the effectiveness of a landing page, potentially wasting thousands in ad spend on poorly converting pages. 

  That’s why over a million websites rely on Matomo as their web analytics solution—it doesn’t sample data, providing 100% accurate website traffic insights you can trust to make informed decisions.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Types of CRO Testing 

  There are three core types of CRO tests :

  A/B testing

  A/B testing, or split testing, is when you test two versions of the same page against each other. Usually, the two pages have only one difference, such as a new headline or a different CTA. 

  

  In the test above, for example, we test what happens if we remove one of the affiliate links from a page. We hypothesise that conversions won’t change because these links aren’t effective.

  A/B/n testing

  A/B/n testing is when you test multiple variations of the same element on the same page. 

  Rather than just testing one headline against another, for example, you test multiple different headlines at once.

  

  In the test above in Matomo, we’re testing a website’s original header against a wider and smaller version. It turns out the wider header converts significantly better. 

  Multivariate testing

  In a multivariate CRO test, you test multiple different elements at the same time. That could mean testing combining a different headline, CTA button, and image. 

  Multivariate testing can save time because you test multiple elements at once and find the best combination of elements. But you’ll usually need a lot of traffic to find a statistically significant result.

  Why is CRO testing important ?

  Who doesn’t want more conversions, right ? Improving your conversion rate is the core benefit of running a CRO test, but there are a couple of other reasons you should do it, too :

  

  Improve conversion rates

  How well does your website convert visitors ? The average conversion rate of a typical website is 2.35%, but better-performing websites have significantly higher conversion rates. The top 25% of websites across all industries convert at a rate of 5.31% or higher.

  CRO testing is the best way to improve your site’s conversion rate by tweaking elements of your website and implementing the best results. And because it’s based on data, not your intuition, you’re likely to identify changes that move the needle. 

  Optimise the user experience

  CRO tests are also a great way to improve your site’s user experience. The process of CRO testing forces you to understand how users navigate your website using heatmaps and session recordings and fix the issues they face. 

  You could simplify your form fields to make them easier to fill in, for example, or make your pages easier to navigate. In both cases, your actions will also increase conversion rates.

  Decrease acquisition costs

  Improving your conversion rate using CRO testing will usually mean a decrease in customer acquisition costs and other conversion metrics. 

  After all, if the cost of your PPC ads stays the same but you convert more traffic, then each new customer will cost less to acquire.

  How to do CRO testing in 6 steps 

  Ready to get your hands dirty ? Follow these six steps to set up your first CRO test :

  Have a clear goal

  Don’t jump straight into testing. You need to be clear about what you want to achieve ; otherwise, you risk wasting time on irrelevant experiments. 

  If you’re unsure what to focus on, look back through your web analytics data and other tools like heatmaps, form analytics, and session recordings to get a feel for some of your site’s biggest conversion roadblocks. 

  Maybe there’s a page with a much lower conversion rate, for example — or a form that most users fail to complete. 

  If it’s the former, then your goal could be to increase the conversion rate of this specific landing page by 25%, bringing it in line with your site’s average. 

  

  Make sure your new conversion goal is set up properly in your website analytics platform, too. This will ensure you’re tracking conversions accurately. 

  Set a hypothesis

  Now you’ve got a goal, it’s time to create a hypothesis. Based on your available research, a hypothesis is an assumption you make about your conversion rate optimisation test.

  A heatmap of your poorly converting landing page may show that users aren’t focusing on your CTA button because it’s hidden below the fold. 

  You could hypothesise that by placing the CTA button directly under your headline above the fold, your conversion rate should increase. 

  Whatever your goal, you can use the following template to write a hypothesis :

  If we [make this specific change], then [this specific outcome] will occur because [reason].

  Design your test elements

  Most marketing managers won’t be able to run CRO tests independently. A team of talented experts must create the assets you need for a successful experimentation. This includes designers, copywriters, and web developers. 

  Don’t just have them create one new element at a time. Accelerate the process by having your team create dozens of designs simultaneously. That way, you can run a new CRO test as soon as your current test has finished. 

  Create and launch the test

  It’s time to launch your test. Use a CRO tool to automate building your test and tracking results. 

  With Matomo’s A/B Testing feature, it’s as easy as giving your test a name, writing a hypothesis and description, and uploading the URLs of your page variants.

  

  Matomo handles everything else, giving you a detailed breakdown at the end of the test with the winning variant. 

  Try Matomo for Free

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

  Start for free

  No credit card required

  Analyse the results

  You can only review the results of your CRO test once it has reached statistical significance — which means the observed outcome isn’t the result of chance.

  In the same way you wouldn’t say a die is unbiased after three rolls, you need thousands of visitors to see your landing pages and take action before deciding which is better. 

  Luckily, most CRO testing platforms, including Matomo, will highlight when a test reaches statistical significance. That means you only need to look at the result to see if your hypothesis is correct. 

  Implement and repeat

  Was your test a success ? Great, you can implement the results and test a new element. 

  Yep, that’s right. There’s no time to rest on your laurels. Continuous CRO testing is necessary to squeeze every conversion possible from your website. Just like fashion trends, website effectiveness changes over time. What works today might not work tomorrow, making ongoing CRO testing beneficial and necessary.

  That’s why it’s a good idea to choose a CRO testing platform like Matomo with no data limits.

  Try Matomo for Free

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

  Start for free

  No credit card required

  CRO testing examples you can run today 

  There’s no shortage of CRO tests you can run. Here are some experiments to get started with :

  Change your CTA design and copy

  Calls to action (CTAs) are the best elements to optimise during your first CRO test. You can change many things about them ; even the smallest optimisation can have a huge impact. 

  Just take a look at the image below to see how diverse your CTAs could be :

  

  Changing your CTA’s copy is a great place to start, especially if you have generic instructions like “Apply Now.”

  Try a more specific instruction like “Download your free trial” or “Buy now to get 30% off.” Or test benefit-led instructions like “Reduce your ad spend today” or “Take back control of your data.”

  Changing the colour of your CTAs can also yield more conversions. Bright colours are always a good bet. Just make sure your button stands out from the rest of your page. 

  Move the CTA button placement

  The placement of your CTA can be just as important as its copy or colour. If it’s down at the bottom of your page, there’s a good chance most of your visitors will miss it. 

  Try moving it above the fold to see if that makes a difference. Then, test multiple CTA buttons as opposed to just one. 

  Heatmaps and session recordings can identify whether this test is worthwhile. If users rarely focus on your CTA or just don’t scroll far enough to find it, then it’s a good bet you could see an uptick in conversions by moving it. 

  Try different headlines

  Your website’s headlines are another great place to start CRO testing. These are usually the first (and sometimes only) things visitors read, so optimising them as much as possible makes sense. 

  There are entire books written about creating persuasive headlines, but start with one of the following tactics :

  • Include a benefit
    • “Achieve radiant skin—discover the secret !”
  • Add numbers
    • “3 foolproof methods for saving money on your next vacation”
  • Using negative words instead of positive ones
    • “Avoid these 7 mistakes to unlock your potential for personal growth”
  • Shortening or lengthening your headline
    • Shortened : “Crush your fitness goals : Expert tips for success”
    • Lengthened : “Embark on your fitness journey : Learn from experts with proven tips to crush your wellness goals”

  Add more trust signals

  Adding trust signals to your website, such as brand logos, customer reviews, and security badges, can increase your conversion rate.

  We use it at Matomo by adding the logos of well-known clients like the United Nations and Amnesty International underneath our CTAs.

  

  It’s incredibly effective, too. Research by Edelman finds that trust is among the top three most important buying decision factors, above brand likeability.

  Start CRO testing with Matomo

  CRO testing is a data-backed method to improve your site’s conversion rate, making it more user-friendly and decreasing customer acquisition costs. Even a small improvement will be worth the cost of the tools and your time. 

  Fortunately, there’s no need to allocate hundreds of dollars monthly for multiple specialised testing tools. With Matomo, you get a comprehensive platform offering web analytics, user behaviour insights, and CRO testing – all conveniently bundled into one solution. Matomo’s pricing starts from just $19 per month, making it accessible to businesses of all sizes.

  Plus, rest assured knowing that you are GDPR compliant and the data provided is 100% accurate, ethically empowering you to make informed decisions with confidence.

  Take the first step on your CRO testing journey by trying Matomo free for 21 days ; no credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

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• Top 5 Customer Segmentation Software in 2024

  12 mars 2024, par Erin

  In marketing, we all know the importance of reaching the right customer with the right message at the right time. That’s how you cut through the noise.

  For that, you need data on your customers — even though gathering the data is not enough. You can have all the data worldwide, but that raises an ethical responsibility and the need to make sense of it.

  Enter customer segmentation software — the answer to delivering personalised customer experiences at scale. 

  This article lists some of the best customer segmentation tools currently in the market. 

  We’ll also go over the benefits of using such tools and how you can choose the best one for your business.

  Let’s get started !

  What is customer segmentation software ?

  Customer segmentation software is a tool that helps businesses analyse customer data and group them based on common characteristics like age, income, and buying habits.

  The main goal of customer segmentation is to gain deeper insights into customer behaviours and preferences. This helps create targeted marketing and product strategies that fit each group and makes it easier to predict how customers will behave in the future.

  

  Benefits of a customer segmentation software

  Understanding your customers is the cornerstone of effective marketing, and customer segmentation software plays a pivotal role in this endeavour. 

  You can deliver more targeted and relevant marketing campaigns by dividing your audience into distinct groups based on shared characteristics. 

  Specifically, here are the main benefits of using customer segmentation tools :

  • Understand your audience better : The software helps businesses group customers with common traits to better understand their preferences and behaviour.
  • Make data-driven decisions : Base your business and marketing decisions on data analytics.
  • Aid product development : Insights from segmentation analytics can guide the creation of products that meet specific customer group needs.
  • Allocate your resources efficiently : Focusing on the customer segments that generate the most revenue leads to more effective and strategic use of your marketing resources.

  Best customer segmentation software in 2024 

  In this section, we go over the top customer segmentation tools in 2024. 

  We’ll look at these tools’ key features and pros and cons.

  1. Matomo

  

  Matomo is a comprehensive web analytics tool that merges traditional web analytics, such as tracking pageviews and visitor bounce rates, with more advanced web analytics features for tracking user behaviour. 

  With robust segmentation features, users can filter website traffic based on criteria such as location and device type, enabling them to analyse specific visitor groups and their behaviour. Users can create custom segments to analyse specific groups of visitors and their behaviour.

  Presenting as the ethical alternative to Google Analytics, Matomo emphasises transparency, 100% accurate data, and compliance with privacy laws.

  Key features

  • Heatmaps and Session Recordings : Matomo provides tools that allow businesses to understand website user interactions visually. This insight is crucial for optimising user experience and increasing conversions.
  • Form Analytics : This feature in Matomo tracks how users interact with website forms, helping businesses understand user behaviour in detail and improve form design and functionality.
  • User Flow Analysis : The tool tracks the journey of a website’s visitors, highlighting the paths taken and where users drop off. This is key for optimising website structure for better user experience and more conversions.
  • A/B Testing : Businesses can use Matomo to test different versions of web pages, determining which is more effective in driving conversions.
  • Conversion Funnels : This feature allows businesses to visualise and optimise the steps customers take toward conversion, identifying areas for improvement.

  Pros 

  • Affordability : With plans starting at $19 per month, Matomo is a cost-effective solution for CRO.
  • Free support : Matomo provides free email support to all Matomo Cloud users.
  • Open-source benefits : Being open-source, Matomo offers enhanced security, privacy, customisation options, and a supportive community.
  • Hosting options : Matomo is available either as a self-hosted solution or cloud-hosted.

  Cons

  • Cost for advanced features : Access to advanced features may incur additional costs for Matomo On-Premise users, although the On-Premise solution itself is free.
  • Technical knowledge required : The self-hosted version of Matomo requires technical knowledge for effective management.

  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 4 (GA4) comprehensively understands website and app performance. It focuses on event-based data collection, allowing businesses to understand user interactions across platforms. 

  Similarly to Matomo, GA4 provides features that allow businesses to segment their audience based on various criteria such as demographics, behaviours, events, and more.

  Key features

  • Event-based tracking : GA4’s shift to an event-based model allows for a flexible and predictive analysis of user behaviour. This includes a detailed view of user interactions on websites and apps.
  • Machine Learning and Smarter Insights : GA4 uses machine learning to automatically detect trends, estimate purchase probabilities and provide marketing insights.
  • Google Ads integration : The integration with Google Ads in GA4 enables tracking customer interactions from first ad engagement, providing a holistic view of the customer experience across various platforms.
  • Customer-centric measurements : GA4 collects data as events, covering a wide range of user interactions and offering a comprehensive view of customer behaviour.
  • Pathing reports : GA4 introduces new pathing reports, allowing detailed user flow analysis through websites and apps.
  • Audiences and filters : GA4 allows the creation of audiences based on specific criteria and the application of filters to segment and refine data analysis.

  Pros 

  • Integration with various platforms, including Google Ads, enhances cross-platform user journey analysis.
  • GA4 has a clean reporting interface, making it easier for marketers to identify key trends and data irregularities.
  • Google Analytics has an active community with an abundance of educational resources available for users.

  Cons

  • Complexity for beginners : The wide range of features and new event-based model might overwhelm users new to analytics tools.
  • Dependence on machine learning : Reliance on machine learning for insights and predictions may require trust in the tool’s data processing and large volumes of traffic for accuracy.
  • Transition from UA to GA4 : Users familiar with Universal Analytics (UA) might find the transition to GA4 challenging due to differences in features and data models.

  3. HubSpot

  

  HubSpot is a marketing and sales software that helps businesses attract visitors and turn them into paying customers. 

  It supports various business processes, from social media posts to email marketing, sales, and customer service. HubSpot organises and tracks user interactions across different channels, providing a unified and efficient approach to customer relationship management (CRM) and customer segmentation.

  Businesses can leverage HubSpot’s customer segmentation through lists, workflows, and smart content.

  Key features

  • Integration capabilities : HubSpot offers over 1,000 integrations in its ecosystem, ensuring seamless connectivity across various marketing, sales, and service tools, which helps maintain data consistency and reduces manual efforts.
  • Segmentation and personalisation : HubSpot allows businesses to deliver personalised content and interactions based on customer behaviour and preferences, using its robust CRM features and advanced automation capabilities.

  Pros 

  • Comprehensive support : HubSpot offers a range of support options, including a knowledge base, real-time chat, and more.
  • User-friendly interface : The platform is designed for ease of use, ensuring a smooth experience even for less tech-savvy users.
  • Personalisation capabilities : HubSpot provides personalised marketing, sales and service experiences, leveraging customer data effectively.

  Cons

  • High price point : HubSpot can be expensive, especially as you scale up and require more advanced features.
  • Steep learning curve : For businesses new to such comprehensive platforms, there might be an initial learning curve to utilise its features effectively.

  4. Klaviyo

  

  Klaviyo is a marketing automation software primarily focused on email and SMS messaging for e-commerce businesses. It’s designed to personalise and optimise customer communication. 

  Klaviyo integrates with e-commerce platforms like Shopify, making it a go-to solution for online stores. Its strength lies in its ability to use customer data to deliver targeted and effective marketing campaigns.

  Key features

  • Email marketing automation : Klaviyo allows users to send automated and personalised emails based on customer behaviour and preferences. This feature is crucial for e-commerce businesses in nurturing leads and maintaining customer engagement.
  • SMS marketing : It includes SMS messaging capabilities, enabling businesses to engage customers directly through text messages.
  • Segmentation and personalisation : Klaviyo offers advanced segmentation tools that enable businesses to categorise customers based on their behaviour, preferences and purchase history, facilitating highly targeted marketing efforts.
  • Integration with e-commerce platforms : Klaviyo integrates with popular e-commerce platforms like Shopify, Magento, and WooCommerce, allowing easy data synchronisation and campaign management.

  Pros 

  • Enhanced e-commerce integration : Klaviyo’s deep integration with e-commerce platforms greatly benefits online retailers regarding ease of use and campaign effectiveness.
  • Advanced segmentation and personalisation : The platform’s strong segmentation capabilities enable businesses to tailor their marketing messages more effectively.
  • Robust automation features : Klaviyo’s automation tools are powerful and user-friendly, saving time and improving marketing efficiency.

  Cons

  • Cost : Klaviyo can be more expensive than other options in this list, particularly as you scale up and add more contacts.
  • Complexity for beginners : The platform’s wide range of features and advanced capabilities might overwhelm beginners or small businesses with simpler needs.

  5. UserGuiding

  

  UserGuiding is a no-code product adoption tool that lets businesses create in-app user walkthroughs, guides, and checklists to onboard, engage, and retain users.

  UserGuiding facilitates customer segmentation by enabling businesses to create segmented onboarding flows, analyse behavioural insights, deliver personalised guidance, and collect feedback tailored to different user segments.

  Key features

  • In-app walkthroughs, guides and checklists : UserGuiding has multiple features that can promote product adoption early in the user journey.
  • In-app messaging : UserGuiding offers in-app messaging to help users learn more about the product and various ways to get value.
  • User feedback : UserGuiding allows businesses to gather qualitative feedback to streamline the adoption journey for users.

  Pros 

  • User-friendly interface
  • Customisable onboarding checklists
  • Retention analytics

  Cons

  • Need for technical expertise to maximise all features
  • Limited customisation options for less tech-savvy users

  What to look for in a customer segmentation software 

  When choosing a customer segmentation software, choosing the right one for your specific business needs is important. 

  Here are a few factors to consider when choosing your customer segmentation tool :

  1. Ease of use : Select a tool with an intuitive interface that simplifies navigation. This enhances the user experience, making complex tasks more manageable. Additionally, responsive customer support is crucial. It ensures that issues are promptly resolved, contributing to a smoother operation.
  2. Scalability and flexibility : Your chosen tool should adjust to your needs. A flexible tool like Matomo can adjust to your growing requirements, offering capabilities that evolve as your business expands.
  3. Integration capabilities : The software should seamlessly integrate with your existing systems, such as CRM, marketing, and automation platforms. 
  4. Advanced analytics and reporting : Assess the software’s capability to analyse and interpret complex data sets, without relying on machine learning to fill data gaps. A robust tool should provide accurate insights and detailed reports, enabling you to make informed decisions based on real data.
  5. Privacy and security considerations : Data security is paramount in today’s digital landscape. Look for features like data encryption, security storage, and adherence to privacy standards like GDPR and CCPA compliance. 
  6. Reviews and recommendations : Before making a decision, consider the reputation of the software providers. Look for reviews and recommendations from other users, especially those in similar industries. This can provide real-world insights into the software’s performance and reliability.

  

  Leverage Matomo’s segmentation capabilities to deliver personalised experiences

  Segmentation is the best place to start if you want to deliver personalised customer experiences. There are several customer segmentation software in the market. But they’re not all the same.

  In this article, we reviewed the top segmentation tools — based on factors like their user base, features, and ethical data privacy considerations.

  Ideally, you want a tool to support your evolving business and segmentation needs. Not to mention one that cares about your customers’ privacy and ensures you stay compliant. 

  Enter Matomo at the top of the list. You can leverage Matomo’s accurate insights and comprehensive segmentation capabilities without compromising on privacy. Try it free for 21-days. No credit card required.

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