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• Conversion Rate Optimisation Statistics for 2024 and Beyond

  21 novembre 2023, par Erin — Analytics Tips

  Driving traffic to your website is only half the battle. The real challenge — once you’ve used a web analytics solution to understand how users behave — is turning more of those visitors into customers.

  That doesn’t happen by accident. You need to employ conversion rate optimisation strategies and tools to see even a small lift in conversion rates. The good news is that it doesn’t take much to see massive results. Raising your conversion rate from 1% to 3% can triple your revenue. 

  In even better news, you don’t have to guess at the best ways to improve your conversion rate. We’ve done the hard work and collected the most recent and relevant conversion rate optimisation statistics to help you. 

  General conversion rate optimisation statistics

  It appears the popularity of conversion rate optimisation is soaring. According to data collected by Google Trends, there were more people searching for the term “conversion rate optimization” in September 2023 than ever before. 

  As you can see from the chart below, the term’s popularity is on a clear upward trajectory, meaning even more people could be searching for it in the near future. (Source)

  

  Do you want to know what the average landing page conversion rate is ? According to research by WordStream, the average website conversion rate across all industries is 2.35%. 

  That doesn’t paint the whole picture, however. 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. (Source)

  Let’s break things down by industry now. The Unbounce Conversion Benchmark Report offers a detailed analysis of how landing pages convert across various industries.

  First, we have the Finance and Insurance industry, which boasts a conversion rate of 15.6%. 

  On the other end, agencies appears to be one of the worst-performing. Agencies’ landing pages convert at a rate of 8.8%. (Source)

  

  What about the size of the conversion rate optimisation industry ? Given the growth in popularity of the term in Google, surely the industry is experiencing growth, right ?

  You’d be correct in that assumption. The conversion rate optimisation software market was valued at $771.2 million in 2018 and is projected to reach $1.932 billion by 2026 — a compound annual growth rate (CAGR) of 9.6%.

  Statistics on the importance of conversion rate optimisation

  If you’re reading this article, you probably think conversion rate optimisation is pretty important. But do you know its importance and where it ranks in your competitors’ priorities ? Read on to find out. 

  Bounce rate — the number of people who leave your website without visiting another page or taking action — is the scourge of conversion rate optimisation efforts. Every time someone bounces from your site, you lose the chance to convert them.

  The questions, then, are : how often do people bounce on average and how does your bounce rate compare ? 

  Siege Media analysed over 1.3 billion sessions from a range of traffic sources, including 700 million bounces, to calculate an average bounce rate of 50.9%. (Source)

  

  Bounce rates vary massively from website to website and industry to industry, however. Siege Media’s study unveils an array of average bounce rates across industries :

  • Travel – 82.58%
  • B2B – 65.17%
  • Lifestyle – 64.26%
  • Business and Finance – 63.51%
  • Healthcare – 59.50%
  • eCommerce – 54.54%
  • Insurance – 45.96%
  • Real Estate – 40.78%

  It won’t come as much of a surprise to learn that marketers are determined to reduce bounce rates and improve lead conversion. Today’s marketers are highly performance-based. When asked about their priorities for the coming year, 79% of marketers said their priority was generating quality qualified leads — the most popular answer in the survey. (Source)

  Just because it is a priority for marketers doesn’t mean that everyone has their stuff together. If you have a conversion rate optimisation process in place, you’re in the minority. According to research by HubSpot, less than one in five marketers (17%) use landing page A/B tests to improve their conversion rates. (Source)

  When it comes to personalisation strategies – a common and effective tool to increase conversion rates — the picture isn’t any rosier. Research by Salesforce found just over one-quarter of markets are confident their organisation has a successful strategy for personalisation. (Source)

  Conversion rate optimisation tactics statistics

  There are hundreds of ways to improve your website’s conversion rates. From changing the color of buttons to the structure of your landing page to your entire conversion funnel, in this section, we’ll look at the most important statistics you need to know when choosing tactics and building your own CRO experiments. 

  If you are looking for the best method to convert visitors, then email lead generation forms are the way to go, according to HubSpot. This inoffensive and low-barrier data collection method boasts a 15% conversion rate, according to the marketing automation company’s research. (Source)

  Where possible, make your call-to-actions personalised. Marketing personalisation, whether through behavioral segmentation or another strategy, is an incredibly powerful way of showing users that you care about their specific needs. It’s no great surprise, then, that HubSpot found personalised calls-to-actions perform a whopping 202% better than basic CTAs. (Source)

  If you want to boost conversion rates, then it’s just as important to focus on quantity as well as quality. Yes, a great-looking, well-written landing page will go a long way to improving your conversion rate, but having a dozen of these pages will do even more. 

  Research by HubSpot found companies see a 55% increase in leads when they increase the number of landing pages from 10 to 15. What’s more, companies with over 40 landing pages increase conversion by more than 500%. (Source)

  

  User-generated content (UGC) should also be high on your priority list to boost conversion rates. Several statistics show how powerful, impactful and persuasive social proof like user reviews can be. 

  Research shows that visitors who scroll to the point where they encounter user-generated content increase the likelihood they convert by a staggering 102.4%. (Source)

  Other trust signs can be just as impactful. Research by Trustpilot found that the following four trust signals make consumers more likely to make a purchase when shown on a product page :

  • Positive star rating and reviews (85% more likely to make a purchase)
  • Positive star rating (78%)
  • Positive customer testimonials (82%)
  • Approved or authorised seller badge (76%)

  (Source)

  Showing ratings and reviews has also increased conversion rates by 38% on home appliances and electronics stores. (Source)

  And no wonder, given that consumers are more likely to buy from brands they trust than brands they love, according to the 2021 Edelman Trust Barometer Special Report. (Source) 

  A lack of trust is also one of the top four reasons consumers abandon their shopping cart at checkout. (Source) 

  Traffic source conversion rate statistics

  What type of traffic works the best when it comes to conversions, or how often you should be signing up users to your mailing list ? Let’s look at the stats to find out. 

  Email opt-ins are one of the most popular methods for collecting customer information — and an area where digital marketers spend a lot of time and effort when it comes to conversion rate optimisation. So, what is the average conversion rate of an email opt-in box ?

  According to research by Sumo — based on 3.2 billion users who have seen their opt-in boxes — the average email opt-in rate is 1.95%. (Source)

  Search advertising is an effective way of driving website traffic, but how often do those users click on these ads ?

  WordStream’s research puts the average conversion of search advertising for all industries at 6.11%. (Source)

  The arts and entertainment industry enjoys the highest clickthrough rates (11.78%), followed by sports and recreation (10.53%) and travel (10.03%). Legal services and the home improvement industry have the lowest clickthrough rates at 4.76% and 4.8%, respectively.

  

  If you’re spending money on Google ads, then you’d better hope a significant amount of users convert after clicking them. 

  Unfortunately, conversion rates from Google ads decreased year-on-year for most industries in 2023, according to research by WordStream — in some cases, those decreases were significant. The only two industries that didn’t see a decrease in conversion rates were beauty and personal care and education and instruction. (Source)

  The average conversion rate for search ads across all industries is 7.04%. The animal and pet niche has the highest conversion rate (13.41%), while apparel, fashion and jewelry have the lowest conversion rate (1.57%). (Source)

  What about other forms of traffic ? Well, there’s good reason to try running interstitial ads on smartphone apps if you aren’t already. Ads on the iOS app see a 14.3 percent conversion rate on average. (Source)

  E-commerce conversion rate optimisation statistics (400 words)

  Conversion rate optimisation can be the difference between a store that sets new annual sales records and one struggling to get by. 

  The good news is that the conversion rate among US shoppers was the highest it’s ever been in 2021, with users converting at 2.6%. (Source)

  If you have a Shopify store, then you may find conversion rates a little lower. A survey by Littledata found the average conversion rate for Shopify was 1.4% in September 2022. (Source)

  What about specific e-commerce categories ? According to data provided by Dynamic Yield, the consumer goods category converted at the highest rate in September 2023 (4.22%), a spike of 0.34% from August. 

  Generally, the food and beverage niche boasts the highest conversion rate (4.87%), and the home and furniture niche has the lowest conversion rate (1.44%). (Source)

  If you’re serious about driving sales, don’t focus on mobile devices at the expense of consumers who shop on desktop devices. The conversion rate among US shoppers tends to be higher for desktop users than for mobile users. 

  

  In the second quarter of 2022, for instance, desktop shoppers converted at a rate of 3% on average compared to smartphone users who converted at an average rate of 2%. (Source)

  Increase your conversions with Matomo

  Conversion rate optimisation can help you grow your subscriber list, build your customer base and increase your revenue. Now, it’s time to put what you’ve learned into practice.

  Use the advice above to guide your experiments and track everything with Matomo. Achieve unparalleled data accuracy while harnessing an all-in-one solution packed with essential conversion optimisation features, including Heatmaps, Session Recordings and A/B Testing. Matomo makes it easier than ever to analyse conversion-focused experiments.

  Get more from your conversion rate optimisations by trying Matomo free for 21 days. No credit card required.

• CCPA vs GDPR : Understanding Their Impact on Data Analytics

  19 mars, par Alex Carmona

  With over 400 million internet users in Europe and 331 million in the US (11% of which reside in California alone), understanding the nuances of privacy laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) is crucial for compliant and ethical consumer data collection.

  Navigating this compliance landscape can be challenging for businesses serving European and Californian markets.

  This guide explores the key differences between CCPA and GDPR, their impact on data analytics, and how to ensure your business meets these essential privacy requirements.

  What is the California Consumer Privacy Act (CCPA) ?

  The California Consumer Privacy Act (CCPA) is a data privacy law that gives California consumers control over their personal information. It applies to for-profit businesses operating in California that meet specific criteria related to revenue, data collection and sales.

  Origins and purpose

  The CCPA addresses growing concerns about data privacy and how businesses use personal information in California. The act passed in 2018 and went into effect on 1 January 2020.

  Key features

  • Grants consumers the right to know what personal information is collected
  • Provides the right to delete personal information
  • Allows consumers to opt out of the sale of their personal information
  • Prohibits discrimination against consumers who exercise their CCPA rights

  Key definitions under the CCPA framework

  • Business : A for-profit entity doing business in California and meeting one or more of these conditions :
    • Has annual gross revenues over $25 million ;
    • Buys, receives, sells or shares 50,000 or more consumers’ personal information ; or
    • Derives 50% or more of its annual revenues from selling consumers’ personal information
  • Consumer : A natural person who is a California resident
  • Personal Information : Information that could be linked to, related to or used to identify a consumer or household, such as online identifiers, IP addresses, email addresses, social security numbers, cookie identifiers and more

  What is the General Data Protection Regulation (GDPR) ?

  The General Data Protection Regulation (GDPR) is a data privacy and protection law passed by the European Union (EU). It’s one of the strongest and most influential data privacy laws worldwide and applies to all organisations that process the personal data of individuals in the EU.

  Origins and purpose

  The GDPR was passed in 2016 and went into effect on 25 May 2018. It aims to harmonise data privacy laws in Europe and give people in the European Economic Area (EEA) privacy rights and control over their data.

  Key features

  • Applies to all organisations that process the personal data of individuals in the EEA
  • Grants individuals a wide range of privacy rights over their data
  • Requires organisations to obtain explicit and informed consent for most data processing
  • Mandates appropriate security measures to protect personal data
  • Imposes significant fines and penalties for non-compliance

  Key definitions under the GDPR framework

  • Data Subject : An identified or identifiable person
  • Personal Data : Any information relating to a data subject
  • Data Controller : The entity or organisation that determines how personal data is processed and what for
  • Data Processor : The entity or organisation that processes the data on behalf of the controller

  CCPA vs. GDPR : Key similarities

  The CCPA and GDPR enhance consumer privacy rights and give individuals greater control over their data.

  Dimension	CCPA	GDPR
  Purpose	Protect consumer privacy	Protect individual data rights
  Key Rights	Right to access, delete and opt out of sale	Right to access, rectify, erase and restrict processing
  Transparency	Requires transparency around data collection and use	Requires transparency about data collection, processing and use

  CCPA vs. GDPR : Key differences

  While they have similar purposes, the CCPA and GDPR differ significantly in their scope, approach and specific requirements.

  Dimension	CCPA	GDPR
  Scope	For-profit businesses only	All organisations processing EU consumer data
  Territorial Reach	California-based natural persons	All data subjects within the EEA
  Consent	Opt-out system	Opt-in system
  Penalties	Per violation based on its intentional or negligent nature	Case-by-case based on comprehensive assessment
  Individual Rights	Narrower (relative to GDPR)	Broader (relative to CCPA)

  CCPA vs. GDPR : A multi-dimensional comparison

  The previous sections gave a broad overview of the similarities and differences between CCPA and GDPR. Let’s now examine nine key dimensions where these regulations converge or diverge and discuss their impact on data analytics.

  

  #1. Scope and territorial reach

  The GDPR has a much broader scope than the CCPA. It applies to all organisations that process the personal data of individuals in the EEA, regardless of their business model, purpose or physical location.

  The CCPA applies to medium and large for-profit businesses that derive a substantial portion of their earnings from selling Californian consumers’ personal information. It doesn’t apply to non-profits, government agencies or smaller for-profit companies.

  Impact on data analytics

  The difference in scope significantly impacts data analytics practices. Smaller businesses may not need to comply with either regulation, some may only need to follow the CCPA, while most global businesses must comply with both. This often requires different methods for collecting and processing data in California, Europe, and elsewhere.

  #2. Penalties and fines for non-compliance

  Both the CCPA and GDPR impose penalties for non-compliance, but the severity of fines differs significantly :

  CCPA	Maximum penalty
  	$2,500 per unintentional violation $7,500 per intentional violation

  “Per violation” means per violation per impacted consumer. For example, three intentional CCPA violations affecting 1,000 consumers would result in 3,000 total violations and a $22.5 million maximum penalty (3,000 × $7,500).

  

  The largest CCPA fine to date was Zoom’s $85 million settlement in 2021.

  

  In contrast, the GDPR has resulted in 2,248 fines totalling almost €6.6 billion since 2018 — €2.4 billion of which were for non-compliance.

  GDPR	Maximum penalty
  	€20 million or 4% of all revenue earned the previous year

  So far, the biggest fine imposed under the GDPR was Meta’s €1.2 billion fine in May 2023 — 15 times more than Zoom had to pay California.

  Impact on data analytics

  The significant difference in potential fines demonstrates the importance of regulatory compliance for data analytics professionals. Non-compliance can have severe financial consequences, directly affecting budget allocation and business operations.

  Businesses must ensure their data collection, storage and processing practices comply with regulations in both Europe and California.

  Choosing privacy-first, compliance-ready analytics platforms like Matomo is instrumental for mitigating non-compliance risks.

  #3. Data subject rights and consumer rights

  The CCPA and GDPR give people similar rights over their data, but their limitations and details differ.

  Rights common to the CCPA and GDPR

  • Right to Access/Know : People can access their personal information and learn what data is collected, its source, its purpose and how it’s shared
  • Right to Delete/Erasure : People can request the deletion of their personal information, with some exceptions
  • Right to Non-Discrimination : Businesses can’t discriminate against people who exercise their privacy rights

  Consumer rights unique to the CCPA

  • Right to Opt Out of Sale : Consumers can prohibit the sale of their personal information
  • Right to Notice : Businesses must inform consumers about data collection practices
  • Right to Disclosure : Consumers can request specific information collected about them

  Data subject rights unique to the GDPR

  • Right to be Informed : Broader transparency requirements encompass data retention, automated decision-making and international transfers
  • Right to Rectification : Data subjects may request the correction of inaccurate data
  • Right to Restrict Processing : Consumers may limit data use in certain situations
  • Right to Data Portability : Businesses must provide individual consumer data in a secure, portable format when requested
  • Right to Withdraw Consent : Consumers may withdraw previously granted consent to data processing

  	CCPA	GDPR
  Right to Access or Know	✓	✓
  Right to Delete or Erase	✓	✓
  Right to Non-Discrimination	✓	✓
  Right to Opt-Out	✓
  Right to Notice	✓
  Right to Disclosure	✓
  Right to be Informed		✓
  Right to Rectification		✓
  Right to Restrict Processing		✓
  Right to Data Portability		✓
  Right to Withdraw Consent		✓

  Impact on data analytics

  Data analysts must understand these rights and ensure compliance with both regulations, which could potentially require separate data handling processes for EU and California consumers.

  #4. Opt-out vs. opt-in

  The CCPA generally follows an opt-out model, while the GDPR requires explicit consent from individuals before processing their data.

  Impact on data analytics

  For CCPA compliance, businesses can collect data by default if they provide opt-out mechanisms. Failing to process opt-out requests can result in severe penalties, like Sephora’s $1.2 million fine.

  Under GDPR, organisations must obtain explicit consent before collecting any data, which can limit the amount of data available for analysis.

  #5. Parental consent

  The CCPA and GDPR have provisions regarding parental consent for processing children’s data. The CCPA requires parental consent for children under 13, while the GDPR sets the age at 16, though member states can lower it to 13.

  Impact on data analytics

  This requirement significantly impacts businesses targeting younger audiences. In Europe and the US, companies must implement different methods to verify users’ ages and obtain parental consent when necessary.

  The California Attorney General’s Office recently fined Tilting Point Media LLC $500,000 for sharing children’s data without parental consent.

  #6. Data security requirements

  Both regulations require businesses to implement adequate security measures to protect personal data. However, the GDPR has more prescriptive requirements, outlining specific security measures and emphasising a risk-based approach.

  Impact on data analytics

  Data analytics professionals must ensure that data is processed and stored securely to avoid breaches and potential fines.

  #7. International data transfers

  Both the CCPA and GDPR address international data transfers. Under the CCPA, businesses must only inform consumers about international transfers. The GDPR has stricter requirements, including ensuring adequate data protection safeguards for transfers outside the EEA.

  

  Other rules, like the Payment Services Directive 2 (PSD2), also affect international data transfers, especially in the financial industry.

  PSD2 requires strong customer authentication and secure communication channels for payment services. This adds complexity to cross-border data flows.

  Impact on data analytics

  The primary impact is on businesses serving European residents from outside Europe. Processing data within the European Union is typically advisable. Meta’s record-breaking €1.2 billion fine was specifically for transferring data from the EEA to the US without sufficient safeguards.

  Choosing the right analytics platform helps avoid these issues.

  For example, Matomo offers a free, open-source, self-hosted analytics platform you can deploy anywhere. You can also choose a managed, GDPR-compliant cloud analytics solution with all data storage and processing servers within the EU (in Germany), ensuring your data never leaves the EEA.

  #8. Enforcement mechanisms

  The California Attorney General is responsible for enforcing CCPA requirements, while in Europe, the Data Protection Authority (DPA) in each EU member state enforces GDPR requirements.

  Impact on data analytics

  Data analytics professionals should be familiar with their respective enforcement bodies and their powers to support compliance efforts and minimise the risk of fines and penalties.

  #9. Legal basis for personal data processing

  The GDPR outlines six legal grounds for processing personal data :

  • Consent
  • Contract
  • Legal obligation
  • Vital interests
  • Public task
  • Legitimate interests

  The CCPA doesn’t explicitly define lawful bases but focuses on consumer rights and transparency in general.

  Impact on data analytics

  Businesses subject to the GDPR must identify and document a valid lawful basis for each processing activity.

  Compliance rules under CCPA and GDPR

  Complying with the CCPA and GDPR requires a comprehensive approach to data privacy. Here’s a summary of the essential compliance rules for each framework :

  

  CCPA compliance rules

  • Create clear and concise privacy policies outlining data collection and use practices
  • Give consumers the right to opt-out
  • Respond to consumer requests to access, delete and correct their personal information
  • Implement reasonable security measures for consumers’ personal data protection
  • Never discriminate against consumers who exercise their CCPA rights

  GDPR compliance rules

  • Obtain explicit and informed consent for data processing activities
  • Implement technical and organisational controls to safeguard personal data
  • Designate a Data Protection Officer (DPO) if necessary
  • Perform data protection impact assessments (DPIAs) for high-risk processing activities
  • Maintain records of processing activities
  • Promptly report data breaches to supervisory authorities

  Navigating the CCPA and GDPR with confidence

  Understanding the nuances of the CCPA and GDPR is crucial for businesses operating in the US and Europe. These regulations significantly impact data collection and analytics practices.

  Implementing robust data security practices and prioritising privacy and compliance are essential to avoid severe penalties and build trust with today’s privacy-conscious consumers.

  Privacy-centric analytics platforms like Matomo enable businesses to collect, analyse and use data responsibly and transparently, extracting valuable insights while maintaining compliance with both CCPA and GDPR requirements.

  Start your 21-day free trial today !

  no credit card required

• Incrementality Testing : Quick-Start Guide (With Calculations)

  26 mars 2024, par Erin

  How do you know when a campaign is successful ? When you earn more revenue than last month ?

  Maybe.

  But how do you know how much of an impact a certain campaign or channel had on your sales ?

  With marketing attribution, you can determine credit for each sale.

  But if you want a deeper look, you need to understand the incremental impact of each channel and campaign.

  The way you do this ?

  Incrementality testing.

  In this guide, we break down what incrementality is, why it’s important and how to test it so you can double down on the activities driving the most growth.

  What is incrementality ?

  So, what exactly is incrementality ?

  Let’s say you just ran a marketing campaign for a new product. The launch was a success. Breakthrough numbers in your revenue. You used a variety of channels and activities to bring it all together.

  So, you launch a plan for next month’s campaign. But you don’t truly know what moved the needle.

  Did you just hit new highs because your audience is bigger ? And your brand is greater ?

  Or did the recent moves you made make a direct difference ?

  This is incrementality.

  

  Incrementality is growth directly attributed to marketing efforts beyond the overall impact of your brand. By measuring and conducting incrementality testing, you can clearly see how much of a difference each activity or channel truly impacted business growth. 

  What is incrementality testing ?

  Incrementality testing allows marketers to gauge the effectiveness of a marketing tactic or strategy. It tells you if a particular marketing activity had a positive, negative or neutral impact on your business. 

  It also tells you the overall impact it can have on your key performance indicators (KPIs). 

  The result ?

  You can pinpoint the highest-performing moves and incorporate them into your marketing workflows. You also discard marketing strategies with negligible, neutral or even negative impacts. 

  For example, let’s say you think a B2B LinkedIn ads campaign will help you reach your product launch goals. An incrementality test can tell you if the introduction of this campaign will help you get to the desired outcome.

  How incrementality testing works

  Before diving into your testing phase, you must clearly identify your KPIs.

  Here are the top KPIs you should be tracking on your website :

  • Ad impressions
  • Website visits
  • Leads
  • Sales

  The exact KPIs will depend on your marketing goals. You’re ready to move forward once you know your key performance indicators.

  Here’s how incrementality testing works step-by-step :

  1. Define a test and control group

  The first step is to define a test group and control group. 

  • A test group is a segment of your target audience that’s exposed to the marketing campaign. 
  • A control group is a segment that isn’t. 

  Keep in mind that both groups have similar demographics and other relevant characteristics. 

  2. Execute your campaign

  The second step is to run the marketing campaign on the test group. This can be a Facebook ad, LinkedIn ad or email marketing campaign.

  It all depends on your goals and your primary channels.

  3. Measure outcomes

  The third step is to measure the campaign’s impact based on your KPIs. 

  Let’s say a brand wants to see if a certain marketing move increases its leads. The test can tell them the number of email sign-ups with and without the campaign. 

  4. Compare results

  Next, compare the test group results with the control group. The difference in outcomes tells you the impact of that campaign. You can then use this difference to inform your future marketing strategies. 

  With Matomo, you can easily track results from campaigns — like conversions. 

  Our platform lets you quickly see what channels are getting the best results so you can gain insights into incrementality and optimise your strategy.

  Try Matomo for Free

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

  Start for free

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  Why it’s important to conduct incrementality tests

  The digital marketing industry is constantly changing. Marketers need to stay on their toes to keep up. Incrementality tests help you stay on track.

  For example, let’s say you’re selling laptops. You can increase your warranty period to three years to see the impact on sales. An incrementality test will tell you if this move will boost your sales (and by how much).

  Now, let’s dive into the reasons why you need to consistently conduct incrementality tests :

  Determine the right tactics for success

  Identifying the best action to grow your business is a challenge every marketer faces.

  The best way to identify marketing tactics is by conducting incrementality testing. These tactics are bound to work since data back them. As a result, you can optimise your marketing budget and maximise your ROIs. 

  It lets you run multiple tests to identify the most impactful strategy between :

  • An email marketing strategy
  • A social media strategy 
  • A PPC ad

  For instance, an incrementality test might suggest email marketing will be more cost-effective than an ad campaign. What you can do is :

  • Expose the test group to the email marketing campaign and then compare the results with the control group
  • Expose the test group to the ad campaign and then compare its results with the control group

  Then, you can calculate the difference in results between the two marketing campaigns. This lets you focus on the strategy with a better ROI or ROAS potential. 

  Accurate data

  Marketing data is powerful. But getting accurate data can be challenging. With incrementality testing, you get to know the true impact of a marketing campaign. 

  Plus, with this testing strategy, you don’t have to waste your marketing budget. 

  With Matomo, you get 100% accurate data on all website activities. 

  Unlike Google Analytics, Matomo doesn’t rely on inaccurate data sampling — limiting the amount of data analysed.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Get the most out of your marketing investment

  Every business owner wants to maximise their return on investment. The ROI you get mainly depends on the marketing strategy. 

  For instance, email marketing offers an ROI of about 40:1 with some sources even reporting as high as 72:1.

  Incrementality testing helps you make informed investment decisions. With it, you can pinpoint the tactics that are most likely to bring the highest return. You can then focus your resources on them. It also helps you stay away from low-performing strategies. 

  Increase revenue

  It’s safe to say that the goal behind every marketing effort is a revenue boost. The higher your revenue, the more profits you generate. However, for many marketers, it’s an uphill battle. 

  With incrementality testing, you can boost your revenue by focusing your efforts in the right direction. 

  Get more traffic

  Incrementality testing tells you if a particular strategy can help you drive more traffic. You can use it to get more high-quality leads to your website or landing pages and double down on high-traffic strategies to increase those leads.

  How to test incrementality

  

  Developing an implementation plan is crucial to generate accurate insights from an incrementality test. Incrementality testing is like running a science experience. You need to go through several stages. Each stage is important for generating accurate results. 

  Here’s how you test incrementality :

  Define your goals

  Get clarity on what you want to achieve with this campaign. Which KPIs do you want to test ? Is it the return on your overall investment (ROI), return on ad spend (ROAS) or something else ?

  Segment your audience

  Selecting the right audience segment is crucial to getting accurate insights with an incrementality test. Decide the demographics and psychographics of the audience you want to target. Then, divide this audience segment into two sub-parts :

  • Test group (people you’ll expose to the marketing campaign)
  • Control group (people who won’t be exposed to the campaign)

  These groups are a part of the larger segment. This means people in both groups will have similar attributes. 

  Launch the test at the right time

  Before the launch, decide on the length of the test. Ideally, it should be at least one week. Don’t run any other campaigns in this window, as it can interfere with the results. 

  Analyse the data and take action

  Once the campaign is over, measure the results from both groups. Compare the data to identify incremental lift in your selected KPIs. 

  Let’s say you want to see if this campaign can boost your sales. Check to see if the test group responded differently than the control group. If the sales equal your desired outcome, you have a winning strategy. 

  Not all incrementality tests result in a positive incremental lift ; Some can be neutral, indicating that the campaign didn’t have any effect. Some can even indicate a negative lift, which means your core group performed better than the test group. 

  Lastly, take action based on the test findings. 

  Incrementality test examples 

  You can use incrementality testing to identify gaps and growth opportunities in your strategy. 

  Here’s an example :

  Let’s say a company runs an incrementality test on a YouTube marketing strategy for sales. The results indicate that the ROI was only $0.10, as the company makes $1.10 for every $1.00 spent. This alarms the marketing department and helps them optimise the campaign for a higher ROI. 

  Here’s another practical example :

  Let’s say a retail business wanted to test the effectiveness of its ad campaign. So, the retailer optimises its ad campaign after conducting an incrementality test on a test and control group. As a result, they experienced a 34% incremental increase in sales.

  How to calculate incrementality in marketing

  Once you’ve aggregated the data, it’s time to calculate. There are two ways to calculate incrementality :

  Incremental profit 

  The first one is incremental profit. It tells you how much profit you can generate with a strategy (If any). With it, you get the actual value of a marketing campaign. 

  It’s calculated with the following formula :

  Test group profit – control group profit = incremental profit 

  For example, let’s say you’re exposing a test group to a paid ads campaign. And it generates a profit of $3,000. On the other hand, the control group generated a $2,000 profit. 

  In this case, your incremental profit will be $1,000 ($3,000 – $2,000). 

  However, if the paid ads campaign generates a $2,000 profit, the incremental profit would be zero. Essentially, you’re generating the same profit as before, which means the campaign doesn’t work. Similarly, a marketing strategy is no good if it generates lower profits than the control group. 

  Incremental lift

  Incremental lift measures the difference in the conversions you generate with each group. 

  Here’s the formula :

  (Test – Control)/Control x 100 = Lift

  So, let’s say the test group and control group generated 2,000 and 1,000 conversions, respectively. 

  The incremental lift you’ll get from this incrementality test would be :

  (2,000 – 1,000)/1,000 x 100 = 100

  This turns out to be a 100% incremental lift.

  How to track incrementality with Matomo

  Incrementality testing lets you use a practical approach to identify the best marketing path for your business.

  It helps you develop a hyper-focused approach that gives you access to accurate and practical data. 

  With these insights, you can confidently move forward to maximise your ROI since it helps you focus on high-performing tactics. 

  The result is more revenue and profit for your business. 

  Plus, all you need to do is identify your target audience, divide them into two groups and run your test. Then, the results will be compared to determine if the marketing strategy offers any value. 

  Conducting incrementality tests may take time and expertise. 

  But, thanks to Matomo, you can leverage accurate insights for your incrementality tests to ensure you make the right decisions to grow your business.

  See for yourself why over 1 million websites choose Matomo. Try it free for 21-days now. No credit card required.

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