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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.

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  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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• 7 Ecommerce Metrics to Track and Improve in 2024

  12 avril 2024, par Erin

  You can invest hours into market research, create the best ads you’ve ever seen and fine-tune your budgets. But the only way to really know if your digital marketing campaigns move the needle is to track ecommerce metrics.

  It’s time to put your hopes and gut feelings aside and focus on the data. Ecommerce metrics are key performance indicators that can tell you a lot about the performance of a single campaign, a traffic source or your entire marketing efforts. 

  That’s why it’s essential to understand what ecommerce metrics are, key metrics to track and how to improve them. 

  Ready to do all of the above ? Then, let’s get started.

  What are ecommerce metrics ? 

  An ecommerce metric is any metric that helps you understand the effectiveness of your digital marketing efforts and the extent to which users are taking a desired action. Most ecommerce metrics focus on conversions, which could be anything from making a purchase to subscribing to your email list.

  You need to track ecommerce metrics to understand how well your marketing efforts are working. They are essential to helping you run a cost-effective marketing campaign that delivers a return on investment. 

  For example, tracking ecommerce metrics will help you identify whether your digital marketing campaigns are generating a return on investment or whether they are actually losing money. They also help you identify your most effective campaigns and traffic sources. 

  Ecommerce metrics also help you spot opportunities for improvement both in terms of your marketing campaigns and your site’s UX. 

  For instance, you can use ecommerce metrics to track the impact on revenue of A/B tests on your marketing campaigns. Or you can use them to understand how users interact with your website and what, if anything, you can do to make it more engaging.

  What’s the difference between conversion rate and conversion value ?

  The difference between a conversion rate and a conversion value is that the former is a percentage while the latter is a monetary value. 

  There can be confusion between the terms conversion rate and conversion value. Since conversions are core metrics in ecommerce, it’s worth taking a minute to clarify. 

  Conversion rates measure the percentage of people who take a desired action on your website compared to the total number of visitors. If you have 100 visitors and one of them converts, then your conversion rate is 1%. 

  Here’s the formula for calculating your conversion rate :

  Conversion Rate (%) = (Number of conversions / Total number of visitors) × 100

  

  Using the example above :

  Conversion Rate = (1 / 100) × 100 = 1%

  Conversion value is a monetary amount you assign to each conversion. In some cases, this is the price of the product a user purchases. In other conversion events, such as signing up for a free trial, you may wish to assign a hypothetical conversion value. 

  To calculate a hypothetical conversion value, let’s consider that you have estimated the average revenue generated from a paying customer is $300. If the conversion rate from free trial to paying customer is 20%, then the hypothetical conversion value for each free trial signup would be $300 multiplied by 20%, which equals $60. This takes into account the number of free trial users who eventually become paying customers.

  So the formula for hypothetical conversion value looks like this :

  

  Hypothetical conversion value = (Average revenue per paying customer) × (Conversion rate)

  Using the values from our example :

  Hypothetical conversion value = $300 × 20% = $60

  The most important ecommerce metrics and how to track them

  There are dozens of ecommerce metrics you could track, but here are seven of the most important. 

  Conversion rate

  Conversion rate is the percentage of visitors who take a desired action. It is arguably one of the most important ecommerce metrics and a great top-level indicator of the success of your marketing efforts. 

  You can measure the conversion rate of anything, including newsletter signups, ebook downloads, and product purchases, using the following formula :

  

  Conversion rate = (Number of people who took action / Total number of visitors) × 100

  You usually won’t have to manually calculate your conversion rate, though. Almost every web analytics or ad platform will track the conversion rate automatically.

  Matomo, for instance, automatically tracks any conversion you set in the Goals report.

  

  As you can see in the screenshot, your site’s conversions are plotted over a period of time and the conversion rate is tracked below the graph. You can change the time period to see how your conversion rate fluctuates.

  If you want to go even further, track your new visitor conversion rate to see how engaging your site is to first-time visitors. 

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  Cost per acquisition

  Cost per acquisition (CPA) is the average cost of acquiring a new user. You can calculate your overall CPA or you can break CPA down by email campaign, traffic source, or any other criteria. 

  Calculate CPA by dividing your total marketing cost by the number of new users you acquire.

  

  CPA = Total marketing cost​ / Number of new users acquired 

  So if your Google Ads campaign costs €1,000 and you acquire 100 new users, your CPA is €10 (1000/100=10).

  It’s important to note that CPA is not the same as customer acquisition cost. Customer acquisition cost considers the number of paying customers. CPA looks at the number of users taking a certain action, like subscribing to a newsletter, making a purchase, or signing up for a free trial.

  Cost per acquisition is a direct measure of your marketing efforts’ effectiveness, especially when comparing CPA to average customer spend and return on ad spend. 

  If your CPA is higher than the average customer spend, your marketing campaign is profitable. If not, then you can look at ways to either increase customer spend or decrease your cost per acquisition.

  Customer lifetime value

  Customer lifetime value (CLV) is the average amount of money a customer will spend with your ecommerce brand over their lifetime. 

  Customer value is the total worth of a customer to your brand based on their purchasing behaviour. To calculate it, multiply the average purchase value by the average number of purchases. For instance, if the average purchase value is €50 and customers make 5 purchases on average, the customer value would be €250.

  Use this formula to calculate customer value :

  

  Customer value = Average purchase value × Average number of purchases

  Then you can calculate customer lifetime value using the following formula :

  

  CLV = Customer value × Average customer lifespan

  In another example, let’s say you have a software company and customers pay you €500 per year for an annual subscription. If the average customer lifespan is 5 years, then the Customer Lifetime Value (CLV) would be €2,500.

  Customer lifetime value = €500 × 5 = €2,500

  Knowing how much potential customers are likely to spend helps you set accurate marketing budgets and optimise the price of your products. 

  Return on investment

  Return on investment (ROI) is the amount of revenue your marketing efforts generate compared to total spend. 

  It’s usually calculated as a percentage using the following formula :

  

  ROI = (Revenue / Total spend) × 100

  If you spend €1,000 on a paid ad campaign and your efforts bring in €5,000, then your ROI is 500% (5,000/1,000 × 100).

  With a web analytics tool like Matomo, you can quickly see the revenue generated from each traffic source and you can drill down further to compare different social media channels, search engines, referral websites and campaigns to get more granular view. 

  

  In the example above in Matomo’s Marketing Attribution feature, we can see that social networks are generating the highest amount of revenue in the year. To calculate ROI, we would need to compare the amount of investment to each channel. 

  Let’s say we invested $1,000 per year in search engine optimisation and content marketing, the return on investment (ROI) stands at approximately 2576%, based on a revenue of $26,763.48 per year. 

  Conversely, for organic social media campaigns, where $5,000 was invested and revenue amounted to $71,180.22 per year, the ROI is approximately 1323%. 

  Despite differences in revenue generation, both channels exhibit significant returns on investment, with SEO and content marketing demonstrating a much higher ROI compared to organic social media campaigns. 

  With that in mind, we might want to consider shifting our marketing budget to focus more on search engine optimisation and content marketing as it’s a greater return on investment.

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  Return on ad spend

  Return on ad spend (ROAS) is similar to return on investment, but it measures the profitability of a specific ad or campaign.

  Calculate ROAS using the following formula :

  

  ROAS = Revenue / Ad cost 

  A positive ROAS means you are making money. If you generate €3 for every €1 you spend on advertising, for example, there’s no reason to turn off that campaign. If you only make €1 for every €2 you spend, however, then you need to shut down the campaign or optimise it. 

  Bounce rate

  Bounce rate is the percentage of visitors who leave your site without taking another action. Calculate it using the following formula :

  

  Bounce rate = (Number of visitors who bounce / Total number of visitors) × 100

  Some portion of users will always leave your site immediately, but you should aim to make your bounce rate as low as possible. After all, every customer that bounces is a missed opportunity that you may never get again. 

  You can check the bounce rate for each one of your site’s pages using Matomo’s page analytics report. Web analytics tools like Google Analytics can track bounce rates for online stores also. 

  

  Bounce rate is calculated automatically. You can sort the list of pages by bounce rate allowing you to prioritise your optimisation efforts. 

  Don’t stop there, though. Explore bounce rate further by comparing your mobile bounce rate vs. desktop bounce rate by segmenting your traffic. This will highlight whether your mobile site needs improving. 

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  Click-through rate

  Your clickthrough rate (CTR) tells you the number of people who click on your ads as a percentage of total impressions. You can calculate it by dividing the number of clicks your ad gets by the total number of times people see it. 

  So the formula looks like this :

  

  CTR (%) = (Number of clicks / Total impressions​) × 100

  If an ad gets 1,000 impressions and 10 people click on it, then the CTR will be 10/1,000 × 100 = 1%

  You don’t usually need to calculate your clickthrough rate manually, however. Most ad platforms like Google Ads will automatically calculate CTR.

  What is considered a good ecommerce sales conversion rate ?

  This question is so broad it’s almost impossible to answer. The thing is, sales conversion rates vary massively depending on the conversion event and the industry. A good conversion rate in one industry might be terrible in another. 

  That being said, research shows that the average website conversion rate across all industries is 2.35%. Of course, some websites convert much better than this. The same study found that the top 25% of websites across all industries have a conversion rate of 5.31% or higher. 

  How can you improve your conversion rate ?

  Ecommerce metrics don’t just let you track your campaign’s ROI, they help you identify ways to improve your campaign. 

  Use these five tips to start improving your marketing campaign’s conversion rates today :

  Run A/B tests

  The most effective way to improve almost all of the ecommerce metrics you track is to test, test, and test again.

  A/B testing or multivariate testing compares two different versions of the same content, such as a landing page or blog post. Seeing which version performs better can help you squeeze as many conversions as possible from your website and ad campaigns. But only if you test as many things as possible. This should include :

  • Ad placement
  • Ad copy
  • CTAs
  • Headlines
  • Straplines
  • Colours
  • Design

  To create and analyse tests and their results effectively, you’ll need either an A/B testing platform or a web analytics solution like Matomo, which offers one out of the box.

  

  Matomo’s A/B Testing feature makes it easy to create and track tests over time, breaking down each test’s variations by the metrics that matter. It automatically calculates statistical significance, too, meaning you can be sure you’re making a change for the better. 

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• A Guide to Ethical Web Analytics in 2024

  17 juin 2024, par Erin

  User data is more valuable and sought after than ever. 

  Ninety-four percent of respondents in Cisco’s Data Privacy Benchmark Study said their customers wouldn’t buy from them if their data weren’t protected, with 95% saying privacy was a business imperative. 

  Unfortunately, the data collection practices of most businesses are far from acceptable and often put their customers’ privacy at risk. 

  But it doesn’t have to be this way. You can ethically collect valuable and insightful customer data—you just need the right tools.

  In this article, we show you what an ethical web analytics solution can look like, why Google Analytics is a problem and how you can collect data without risking your customers’ privacy.

  What is ethical web analytics ?

  Ethical web analytics put user privacy first. These platforms prioritise privacy and transparency by only collecting necessary data, avoiding implicit user identification and openly communicating data practices and tracking methods. 

  Ethical tools adhere to data protection laws like GDPR as standard (meaning businesses using these tools never have to worry about fines or disruptions). In other words, ethical web analytics refrain from exploiting and profiting from user behaviour and data. 

  Unfortunately, most traditional data solutions collect as much data as possible without users’ knowledge or consent.

  Why does digital privacy matter ?

  Digital privacy matters because companies have repeatedly proven they will collect and use data for financial gain. It also presents security risks. Unsecured user data can lead to identity theft, cyberattacks and harassment. 

  Big tech companies like Google and Meta are often to blame for all this. These companies collect millions of user data points — like age, gender, income, political beliefs and location. Worse still, they share this information with interested third parties.

  After public outrage over data breaches and other privacy scandals, consumers are taking active steps to disallow tracking where possible. IAPP’s Privacy and Consumer Trust Report finds that 68% of consumers across 19 countries are somewhat or very concerned about their digital privacy. 

  There’s no way around it : companies of all sizes and shapes need to consider how they handle and protect customers’ private information. 

  Why should you use an ethical web analytics tool ?

  When companies use ethical web analytics tools they can build customer trust, boost their brand reputation, improve data security practices and future proof their website tracking solution. 

  Boost brand reputation

  The fallout from a data privacy scandal can be severe. 

  Just look at what happened to Facebook during the Cambridge Analytica data scandal. The eponymous consulting firm harvested 50 million Facebook profiles and used that information to target people with political messages. Due to the instant public backlash, Facebook’s stock tanked, and use of the “delete Facebook” hashtag increased by 423% in the following days.

  That’s because consumers care about data privacy, according to Deloitte’s Connected Consumer Study :

  • Almost 90 percent agree they should be able to view and delete data companies collect 
  • 77 percent want the government to introduce stricter regulations
  • Half feel the benefits they get from online services outweigh data privacy concerns.

  If you can prove you buck the trend by collecting data using ethical methods, it can boost your brand’s reputation. 

  Build trust with customers

  At the same time, collecting data in an ethical way can help you build customer trust. You’ll go a long way to changing consumer perceptions, too. Almost half of consumers don’t like sharing data, and 57% believe companies sell their data. 

  This additional trust should generate a positive ROI for your business. According to Cisco’s Data Privacy Benchmark Study, the average company gains $180 for every $100 they invest in privacy. 

  Improve data security

  According to IBM’s Cost of a Data Breach report, the average cost of a data breach is nearly $4.5 million. This kind of scenario becomes much less likely when you use an ethical tool that collects less data overall and anonymises the data you do collect. 

  Futureproof your web analytics solution

  The obvious risk of not complying with privacy regulations is a fine — which can be up to €20 million, or 4% of worldwide annual revenue in the case of GDPR.

  It’s not just fines and penalties you risk if you fail to comply with privacy regulations like GDPR. For some companies, especially larger ones, the biggest risk of non-compliance with privacy regulations is the potential sudden need to abandon Google Analytics and switch to an ethical alternative.

  If Data Protection Authorities ban Google Analytics again, as has happened in Austria, France, and other countries, businesses will be forced to drop everything and make an immediate transition to a compliant web analytics solution.

  When an organisation’s entire marketing operation relies on data, migrating to a new solution can be incredibly painful and time-consuming. So, the sooner you switch to an ethical tool, the less of a headache the process will be. 

  The problem with Google Analytics

  Google Analytics (GA) is the most popular analytics platform in the world, but it’s a world away from being an ethical tool. Here’s why :

  You don’t have data ownership

  Google Analytics is attractive to businesses of all sizes because of its price. Everyone loves getting something for free, but there’s still a cost — your and your customers’ data.

  That’s because Google combines the data you collect with information from the millions of other websites it tracks to inform its advertising efforts. It may also use your data to train large language models like Gemini. 

  It has a rocky history with GDPR laws

  Google and EU regulators haven’t always got along. For example, the German Data Protection Authority is investigating 200,000 pending cases against websites using GA. The platform has also been banned and added back to the EU-US Data Privacy Framework several times over the past few years. 

  You can use GA to collect data about EU customers right now, but there’s no guarantee you’ll be able to do so in the future. 

  It requires a specific setup to remain compliant

  While you can currently use GA in a GDPR-compliant way — owing to its inclusion in the EU-US Data Privacy Framework — you have to set it up in a very specific way. That’s because the platform’s compliance depends on what data you collect, how you inform users and the level of consent you acquire. You’ll still need to include an extensive privacy policy on your website. 

  What does ethical web analytics look like ?

  An ethical web analytics solution should put user privacy first, ensure compliance with regulations like GDPR, give businesses 100% control of the data they collect and be completely transparent about data collection and storage practices. 

  

  100% data ownership

  You don’t fully control customer data when you use Google Analytics. The search giant uses your data for its own advertising purposes and may also use it to train large language models like Gemini. 

  When you choose an ethical web analytics alternative like Matomo, you can ensure you completely own your data.

  Try Matomo for Free

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

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  Respects user privacy

  It’s possible to track and measure user behaviour without collecting personally identifiable information (PII). Just look at the ethical web analytics tools we’ve reviewed below. 

  These platforms respect user privacy and conform to strict privacy regulations like GDPR, CCPA and HIPAA by incorporating some or all of the following features :

  • Opt-out mechanisms to let users refuse tracking
  • IP addresses anonymisation and other data anonymisation techniques
  • DoNotTrack options
  • Shorter expiration dates for tracking cookies

  In Matomo’s case, it’s all of the above. Better still, you can check our privacy credentials yourself. Our software’s source code is open source on GitHub and accessible to anyone at any time. 

  Compliant with government regulations

  While Google’s history with data regulations is tumultuous, an ethical web analytics platform should follow even the strictest privacy laws, including GDPR, HIPAA, CCPA, LGPD and PECR.

  But why stop there ? Matomo has been approved by the French Data Protection Authority (CNIL) as one of the few web analytics tools that French sites can use to collect data without tracking consent. So you don’t need an annoying consent banner popping up on your website anymore. 

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  Complete transparency 

  Ethical web analytics tools will be upfront about their data collection practices, whether that’s in the U.S., EU, or on your own private servers. Look for a solution that refrains from collecting personally identifiable information, shows where data is stored, and lets you alter tracking methods to increase privacy even further. 

  Some solutions, like Matomo, will increase transparency further by providing open source software. Anyone can find our source code on GitHub to see exactly how our platform tracks and stores user data. This means our code is regularly examined and reviewed by a community of developers, making it more secure, too.

  Ethical web analytics solutions

  There are several options for an ethical web analytics tool. We list three of the best providers below. 

  Matomo

  Matomo is an open source web analytics tool and privacy-focused Google Analytics alternative used by over one million sites globally. 

  

  Matomo is fully compliant with prominent global privacy regulations like GDPR, CCPA and HIPAA, meaning you never have to worry about collecting consent when tracking user behaviour. 

  The data you collect is completely accurate since Matomo doesn’t use data sampling and is 100% yours. We don’t share data with third parties but can prove it. Our product source code is publicly available on GitHub. As a community-led project, you can download and install it yourself for free. 

  With Matomo, you get a full range of web analytics capabilities and behavioural analytics. That includes your standard metrics (think visitors, traffic sources, bounce rates, etc.), advanced features to analyse user behaviour like A/B Testing, Form Analytics, Heatmaps and Session Recordings. 

  Migrating to Matomo is easy. You can even import historical Google Analytics data to generate meaningful insights immediately. 

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  Fathom

  Fathom Analytics is a lightweight privacy-focused analytics solution that launched in 2018. It aims to be an easy-to-use Google Analytics alternative that doesn’t compromise privacy. 

  

  Like Matomo, Fathom complies with all major privacy regulations, including GDPR and CCPA. It also provides 100% accurate, unsampled reports and doesn’t share your data with third parties. 

  While Fathom provides fairly comprehensive analytics reports, it doesn’t have some of Matomo’s more advanced features. That includes e-commerce tracking, heatmaps, session recordings, and more. 

  Plausible

  Plausible Analytics is another open source Google Analytics alternative that was built and hosted in the EU. 

  

  Launched in 2019, Plausible is a newer player in the privacy-focused analytics market. Still, its ultra-lightweight script makes it an attractive option for organisations that prioritise speed over everything else. 

  Like Matomo and Fathom, Plausible is GDPR and CCPA-compliant by design. Nor is there any cap on the amount of data you collect or any debate over whether the data is accurate (Plausible doesn’t use data sampling) or who owns the data (you do). 

  Matomo makes it easy to migrate to an ethical web analytics alternative

  There’s no reason to put your users’ privacy at risk, especially when there are so many benefits to choosing an ethical tool. Whether you want to avoid fines, build trust with your customers, or simply know you’re doing the right thing, choosing a privacy-focused, ethical solution like Matomo is taking a massive step in the right direction. 

  Making the switch is easy, too. Matomo is one of the few options that lets you import historical Google Analytics data, so starting from scratch is unnecessary. 

  Get started today by trying Matomo for free for 21-days. No credit card required. 

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