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• A Guide to Bank Customer Segmentation

  18 juillet 2024, par Erin

  Banking customers are more diverse, complex, and demanding than ever. As a result, banks have to work harder to win their loyalty, with 75% saying they would switch to a bank that better fits their needs.

  The problem is banking customers’ demands are increasingly varied amid economic uncertainties, increased competition, and generational shifts.

  If banks want to retain their customers, they can’t treat them all the same. They need a bank customer segmentation strategy that allows them to reach specific customer groups and cater to their unique demands.

  What is customer segmentation ?

  Customer segmentation divides a customer base into distinct groups based on shared characteristics or behaviours.

  This allows companies to analyse the behaviours and needs of different customer groups. Banks can use these insights to target segments with relevant marketing throughout the customer cycle, e.g., new customers, inactive customers, loyal customers, etc.

  You combine data points from multiple segmentation categories to create a customer segment. The most common customer segmentation categories include :

  • Demographic segmentation
  • Website activity segmentation
  • Geographic segmentation
  • Purchase history segmentation
  • Product-based segmentation
  • Customer lifecycle segmentation
  • Technographic segmentation
  • Channel preference segmentation
  • Value-based segmentation

  

  By combining segmentation categories, you can create detailed customer segments. For example, high-value customers based in a particular market, using a specific product, and approaching the end of the lifecycle. This segment is ideal for customer retention campaigns, localised for their market and personalised to satisfy their needs.

  

  Matomo’s privacy-centric web analytics solution helps you capture data from the first visit. Unlike Google Analytics, Matomo doesn’t use data sampling (more on this later) or AI to fill in data gaps. You get 100% accurate data for reliable insights and customer segmentation.

  Try Matomo for Free

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

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  Why is customer segmentation important for banks ?

  Customer segmentation allows you to address the needs of specific groups instead of treating all of your customers the same. This has never been more important amid a surge in bank switching, with three in four customers ready to switch to a provider that better suits their needs.

  Younger customers are the most likely to switch, with 19% of 18-24 year olds changing their primary bank in the past year (PDF).

  Customer expectations are changing, driven by economic uncertainties, declining trust in traditional banking, and the rise of fintech. Even as economic pressures lift, banks need to catch up with the demands of maturing millennials, Gen Z, and future generations of banking customers.

  Switching is the new normal, especially for tech-savvy customers encouraged by an expanding world of digital banking options.

  To retain customers, banks need to know them better and understand how their needs change over time. Customer retention provides the insights banks need to understand these needs at a granular level and the means to target specific customer groups with relevant messages.

  At its core, customer segmentation is essential to banks for two key reasons :

  • Customer retention : Holding on to customers for longer by satisfying their personal needs.
  • Customer lifetime value : Maximising ongoing customer revenue through retention, purchase frequency, cross-selling, and upselling.

  Here are some actionable bank customer segmentation strategies that can achieve these two objectives :

  Prevent switching with segment analysis

  Use customer segmentation to prevent them from switching to rivals by knowing what they want from you. Analyse customer needs and how they change throughout the lifecycle. Third-party data reveals general trends, but what do your customers want ?

  

  Use first-party customer data and segmentation to go beyond industry trends. Know exactly what your customers want from you and how to deliver targeted messages to each segment — e.g., first-time homebuyers vs. retirement planners.

  Keep customers active with segment targeting

  Target customer segments to keep customers engaged and motivated. Create ultra-relevant marketing messages and deliver them with precision to distinct customer segments. Nurture customer motivation by continuing to address their problems and aspirations.

  Improve the quality of services and products

  Knowing your customers’ needs in greater detail allows you to adapt your products and messages to cater to the most important segments. Customers switch banks because they feel their needs are better met elsewhere. Prevent this by implementing customer segmentation insights into product development and marketing.

  Personalise customer experiences by layering segments

  Layer segments to create ultra-specific target customer groups for personalised services and marketing campaigns. For example, top-spending customers are one of your most important segments, but there’s only so much you can do with this. However, you can divide this group into even narrower target audiences by layering multiple segments.

  For example, segmenting top-spending customers by product type can create more relevant messaging. You can also segment recent activity and pinpoint specific usage segments, such as those with a recent drop in transactions.

  Now, you have a three-layered segment of high-spending customers who use specific products less often and whom you can target with re-engagement campaigns.

  Maximise customer lifetime value

  Bringing all of this together, customer segmentation helps you maximise customer lifetime value in several ways :

  • Prevent switching
  • Enhance engagement and motivation
  • Re-engage customers
  • Cross-selling, upselling
  • Personalised customer loyalty incentives

  The longer you retain customers, the more you can learn about them, and the more effective your lifetime value campaigns will be.

  Balancing bank customer segmentation with privacy and marketing regulations

  Of course, customer segmentation uses a lot of data, which raises important legal and ethical questions. First, you need to comply with data and privacy regulations, such as GDPR and CCPA. Second, you also have to consider the privacy expectations of your customers, who are increasingly aware of privacy issues and rising security threats targeting financial service providers.

  If you aim to retain and maximise customer value, respecting their privacy and protecting their data are non-negotiables.

  Regulators are clamping down on finance

  Regulatory scrutiny towards the finance industry is intensifying, largely driven by the rise of fintech and the growing threat of cyber attacks. Not only was 2023 a record-breaking year for finance security breaches but several compromises of major US providers “exposed shortcomings in the current supervisory framework and have put considerable public pressure on banking authorities to reevaluate their supervisory and examination programs” (Deloitte).

  Banks face some of the strictest consumer protections and marketing regulations, but the digital age creates new threats.

  In 2022, the Consumer Financial Protection Bureau (CFPB) warned that digital marketers must comply with finance consumer protections when targeting audiences. CFPB Director Rohit Chopra said : “When Big Tech firms use sophisticated behavioural targeting techniques to market financial products, they must adhere to federal consumer financial protection laws.”

  This couldn’t be more relevant to customer segmentation and the tools banks use to conduct it.

  Customer data in the hands of agencies and big tech

  Banks should pay attention to the words of CFPB Director Rohit Chopra when partnering with marketing agencies and choosing analytics tools. Digital marketing agencies are rarely experts in financial regulations, and tech giants like Google don’t have the best track record for adhering to them.

  Google is constantly in the EU courts over its data use. In 2022, the EU ruled that the previous version of Google Analytics violated EU privacy regulations. Google Analytics 4 was promptly released but didn’t resolve all the issues.

  Meanwhile, any company that inadvertently misuses Google Analytics is legally responsible for its compliance with data regulations.

  Banks need a privacy-centric alternative to Google Analytics

  Google’s track record with data regulation compliance is a big issue, but it’s not the only one. Google Analytics uses data sampling, which Google defines as the “practice of analysing a subset of data to uncover meaningful information from a larger data set.”

  This means Google Analytics places thresholds on how much of your data it analyses — anything after that is calculated assumptions. We’ve explained why this is such a problem before, and GA4 relies on data sampling even more than the previous version.

  In short, banks should question whether they can trust Google with their customer data and whether they can trust Google Analytics to provide accurate data in the first place. And they do. 80% of financial marketers say they’re concerned about ad tech bias from major providers like Google and Meta.

  

  Matomo is the privacy-centric alternative to Google Analytics, giving you 100% data ownership and compliant web analytics. With no data sampling, Matomo provides 20-40% more data to help you make accurate, informed decisions. Get the data you need for customer segmentation without putting their data at risk.

  Try Matomo for Free

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

  Start for free

  No credit card required

  Bank customer segmentation examples

  Now, let’s look at some customer segments you create and layer to target specific customer groups.

  Visit-based segmentation

  Visit segmentation filters audiences based on the pages they visit on your website and the behaviors they exhibit—for example, first-time visitors vs. returning visitors or landing page visitors vs. blog page visitors.

  If you look at HSBC’s website, you’ll see it is structured into several categories for key customer personas. One of its segments is international customers living in the US, so it has pages and resources expats, people working in the US, people studying in the US, etc. 

  

  By combining visit-based segmentation with ultra-relevant pages for specific target audiences, HSBC can track each group’s demand and interest and analyse their behaviours. It can determine which audiences are returning, which products they want, and which messages convert them.

  Demographic segmentation

  Demographic segmentation divides customers by attributes such as age, gender, and location. However, you can also combine these insights with other non-personal data to better understand specific audiences.

  For example, in Matomo, you can segment audiences based on the language of their browser, the country they’re visiting from, and other characteristics. So, in this case, HSBC could differentiate between visitors already residing in the US and those outside of the country looking for information on moving there.

  

  It could determine which countries they’re visiting, which languages to localise for, and which networks to run ultra-relevant social campaigns on.

  Interaction-based segmentation

  Interaction-based segmentation uses events and goals to segment users based on their actions on your website. For example, you can segment audiences who visit specific URLs, such as a loan application page, or those who don’t complete an action, such as failing to complete a form.

  

  With events and goals set up, you can track the actions visitors complete before making purchases. You can monitor topical interests, page visits, content interactions, and pathways toward conversions, which feed into their customer journey.

  From here, you can segment customers based on their path leading up to their first purchase, follow-up purchases, and other actions.

  Purchase-based segmentation

  Purchase-based segmentation allows you to analyse the customer behaviours related to their purchase history and spending habits. For example, you can track the journey of repeat customers or identify first-time buyers showing interest in other products/services.

  You can implement these insights into your cross-selling and upselling campaigns with relevant messages designed to increase retention and customer lifetime value.

  Get reliable website analytics for your bank customer segmentation needs

  With customers switching in greater numbers, banks need to prioritise customer retention and lifetime value. Customer segmentation allows you to target specific customer groups and address their unique needs — the perfect strategy to stop them from moving to another provider.

  Quality, accurate data is the key ingredient of an effective bank customer segmentation strategy. Don’t accept data sampling from Google Analytics or any other tool that limits the amount of your own data you can access. Choose a web analytics tool like Matamo that unlocks the full potential of your website analytics to get the most out of bank customer segmentation.

  Matomo is trusted by over 1 million websites globally, including many banks, for its accuracy, compliance, and reliability. Discover why financial institutions rely on Matomo to meet their web analytics needs.

  Start collecting the insights you need for granular, layered segmentation — without putting your bank customer data at risk. Request a demo of Matomo now.

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• How HSBC and ING are transforming banking with AI

  9 novembre 2024, par Daniel Crough — Banking and Financial Services, Featured Banking Content

  We recently partnered with FinTech Futures to produce an exciting webinar discussing how analytics leaders from two global banks are using AI to protect customers, streamline operations, and support environmental goals.

  Watch the on-demand webinar : Advancing analytics maturity.

  Email

  By providing your email and clicking “submit”, you agree to receive direct marketing materials relating to Matomo products and services, surveys, information about events, publications and promotions. You can unsubscribe at any time by clicking the opt-out link provided in each communication. We will process your personal information in accordance with our Privacy Policy.

  
  
  
  
  

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  Meet the expert panel

  Roshini Johri heads ESG Analytics at HSBC, where she leads AI and remote sensing applications supporting the bank’s net zero goals. Her expertise spans climate tech and financial services, with a focus on scalable analytics solutions.

   

  Marco Li Mandri leads Advanced Analytics Strategy at ING, where he focuses on delivering high-impact solutions and strengthening analytics foundations. His background combines analytics, KYC operations, and AI strategy.

   

  Carmen Soini Tourres works as a Web Analyst Consultant at Matomo, helping financial organisations optimise their digital presence whilst maintaining privacy compliance.

   

  Key findings from the webinar

  The discussion highlighted four essential elements for advancing analytics capabilities :

  1. Strong data foundations matter most

  “It doesn’t matter how good the AI model is. It is garbage in, garbage out,”

  Johri explained. Banks need robust data governance that works across different regulatory environments.

  2. Transform rather than tweak

  Li Mandri emphasised the need to reconsider entire processes :

  “We try to look at the banking domain and processes and try to re-imagine how they should be done with AI.”

  3. Bridge technical and business understanding

  Both leaders stressed the value of analytics translators who understand both technology and business needs.

  “We’re investing in this layer we call product leads,”

  Li Mandri explained. These roles combine technical knowledge with business acumen – a rare but vital skill set.

  4. Consider production costs early

  Moving from proof-of-concept to production requires careful planning. As Johri noted :

  “The scale of doing things in production is quite massive and often doesn’t get accounted for in the cost.”

  This includes :

  • Ongoing monitoring requirements
  • Maintenance needs
  • Regulatory compliance checks
  • Regular model updates

  Real-world applications

  ING’s approach demonstrates how banks can transform their operations through thoughtful AI implementation. Li Mandri shared several areas where the bank has successfully deployed analytics solutions, each benefiting both the bank and its customers.

  Customer experience enhancement

  The bank’s implementation of AI-powered instant loan processing shows how analytics can transform traditional banking.

  “We know AI can make loans instant for the customer, that’s great. Clicking one button and adding a loan, that really changes things,”

  Li Mandri explained. This goes beyond automation – it represents a fundamental shift in how banks serve their customers.

  The system analyses customer data to make rapid lending decisions while maintaining strong risk assessment standards. For customers, this means no more lengthy waiting periods or complex applications. For the bank, it means more efficient resource use and better risk management.

  The bank also uses AI to personalise customer communications.

  “We’re using that to make certain campaigns more personalised, having a certain tone of voice,”

  noted Li Mandri. This particularly resonates with younger customers who expect relevant, personalised interactions from their bank.

  Operational efficiency transformation

  ING’s approach to Know Your Customer (KYC) processes shows how AI can transform resource-heavy operations.

  “KYC is a big area of cost for the bank. So we see massive value there, a lot of scale,”

  Li Mandri explained. The bank developed an AI-powered system that :

  • Automates document verification
  • Flags potential compliance issues for human review
  • Maintains consistent standards across jurisdictions
  • Reduces processing time while improving accuracy

  This implementation required careful consideration of regulations across different markets. The bank developed monitoring systems to ensure their AI models maintain high accuracy while meeting compliance standards.

  In the back office, ING uses AI to extract and process data from various documents, significantly reducing manual work. This automation lets staff focus on complex tasks requiring human judgment.

  Sustainable finance initiatives

  ING’s commitment to sustainable banking has driven innovative uses of AI in environmental assessment.

  “We have this ambition to be a sustainable bank. If you want to be a sustainable finance customer, that requires a lot of work to understand who the company is, always comparing against its peers.”

  The bank developed AI models that :

  • Analyse company sustainability metrics
  • Compare environmental performance against industry benchmarks
  • Assess transition plans for high-emission industries
  • Monitor ongoing compliance with sustainability commitments

  This system helps staff evaluate the environmental impact of potential deals quickly and accurately.

  “We are using AI there to help our frontline process customers to see how green that deal might be and then use that as a decision point,”

  Li Mandri noted.

  HSBC’s innovative approach

  Under Johri’s leadership, HSBC has developed several groundbreaking uses of AI and analytics, particularly in environmental monitoring and operational efficiency. Their work shows how banks can use advanced technology to address complex global challenges while meeting regulatory requirements.

  Environmental monitoring through advanced technology

  HSBC uses computer vision and satellite imagery analysis to measure environmental impact with new precision.

  “This is another big research area where we look at satellite images and we do what is called remote sensing, which is the study of a remote area,”

  Johri explained.

  The system provides several key capabilities :

  • Analysis of forest coverage and deforestation rates
  • Assessment of biodiversity impact in specific regions
  • Monitoring of environmental changes over time
  • Measurement of environmental risk in lending portfolios

  “We can look at distant images of forest areas and understand how much percentage deforestation is being caused in that area, and we can then measure our biodiversity impact more accurately,”

  Johri noted. This technology enables HSBC to :

  • Make informed lending decisions
  • Monitor environmental commitments of borrowers
  • Support sustainability-linked lending programmes
  • Provide accurate environmental impact reporting

  Transforming document analysis

  HSBC is tackling one of banking’s most time-consuming challenges : processing vast amounts of documentation.

  “Can we reduce the onus of human having to go and read 200 pages of sustainability reports each time to extract answers ?”

  Johri asked. Their solution combines several AI technologies to make this process more efficient while maintaining accuracy.

  The bank’s approach includes :

  • Natural language processing to understand complex documents
  • Machine learning models to extract relevant information
  • Validation systems to ensure accuracy
  • Integration with existing compliance frameworks

  “We’re exploring solutions to improve our reporting, but we need to do it in a safe, robust and transparent way.”

  This careful balance between efficiency and accuracy exemplifies HSBC’s approach to AI.

  Building future-ready analytics capabilities

  Both banks emphasise that successful analytics requires a comprehensive, long-term approach. Their experiences highlight several critical considerations for financial institutions looking to advance their analytics capabilities.

  Developing clear governance frameworks

  “Understanding your AI risk appetite is crucial because banking is a highly regulated environment,”

  Johri emphasised. Banks need to establish governance structures that :

  • Define acceptable uses for AI
  • Establish monitoring and control mechanisms
  • Ensure compliance with evolving regulations
  • Maintain transparency in AI decision-making

  Creating solutions that scale

  Li Mandri stressed the importance of building systems that grow with the organisation :

  “When you try to prototype a model, you have to take care about the data safety, ethical consideration, you have to identify a way to monitor that model. You need model standard governance.”

  Successful scaling requires :

  • Standard approaches to model development
  • Clear evaluation frameworks
  • Simple processes for model updates
  • Strong monitoring systems
  • Regular performance reviews

  Investing in people and skills

  Both leaders highlighted how important skilled people are to analytics success.

  “Having a good hiring strategy as well as creating that data literacy is really important,”

  Johri noted. Banks need to :

  • Develop comprehensive training programmes
  • Create clear career paths for analytics professionals
  • Foster collaboration between technical and business teams
  • Build internal expertise in emerging technologies

  Planning for the future

  Looking ahead, both banks are preparing for increased regulation and growing demands for transparency. Key focus areas include :

  • Adapting to new privacy regulations
  • Making AI decisions more explainable
  • Improving data quality and governance
  • Strengthening cybersecurity measures

  Practical steps for financial institutions

  The experiences shared by HSBC and ING provide valuable insights for financial institutions at any stage of their analytics journey. Their successes and challenges outline a clear path forward.

  Key steps for success

  Financial institutions looking to enhance their analytics capabilities should :

  1. Start with strong foundations
     • Invest in clear data governance frameworks
     • Set data quality standards
     • Build thorough documentation processes
     • Create transparent data tracking
  2. Think strategically about AI implementation
     • Focus on transformative rather than small changes
     • Consider the full costs of AI projects
     • Build solutions that can grow
     • Balance innovation with risk management
  3. Invest in people and processes
     • Develop internal analytics expertise
     • Create clear paths for career growth
     • Foster collaboration between technical and business teams
     • Build a culture of data literacy
  4. Plan for scale
     • Establish monitoring systems
     • Create governance frameworks
     • Develop standard approaches to model development
     • Stay flexible for future regulatory changes

  Learn more

  Want to hear more insights from these industry leaders ? Watch the complete webinar recording on demand. You’ll learn :

  • Detailed technical insights from both banks
  • Extended Q&A with the speakers
  • Additional case studies and examples
  • Practical implementation advice

   

   

  Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

  Watch the on-demand webinar : Advancing analytics maturity.

  Email

  By providing your email and clicking “submit”, you agree to receive direct marketing materials relating to Matomo products and services, surveys, information about events, publications and promotions. You can unsubscribe at any time by clicking the opt-out link provided in each communication. We will process your personal information in accordance with our Privacy Policy.

  
  
  
  
  

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• Google Optimize vs Matomo A/B Testing : Everything You Need to Know

  17 mars 2023, par Erin — Analytics Tips

  Google Optimize is a popular A/B testing tool marketers use to validate the performance of different marketing assets, website design elements and promotional offers. 

  But by September 2023, Google will sunset both free and paid versions of the Optimize product. 

  If you’re searching for an equally robust, but GDPR compliant, privacy-friendly alternative to Google Optimize, have a look at Matomo A/B Testing. 

  Integrated with our analytics platform and conversion rate optimisation (CRO) tools, Matomo allows you to run A/B and A/B/n tests without any usage caps or compromises in user privacy.

  Disclaimer : Please note that the information provided in this blog post is for general informational purposes only and is not intended to provide legal advice. Every situation is unique and requires a specific legal analysis. If you have any questions regarding the legal implications of any matter, please consult with your legal team or seek advice from a qualified legal professional.

  Google Optimize vs Matomo : Key Capabilities Compared 

  This guide shows how Matomo A/B testing stacks against Google Optimize in terms of features, reporting, integrations and pricing.

  Supported Platforms 

  Google Optimize supports experiments for dynamic websites and single-page mobile apps only. 

  If you want to run split tests in mobile apps, you’ll have to do so via Firebase — Google’s app development platform. It also has a free tier but paid usage-based subscription kicks in after your product(s) reaches a certain usage threshold. 

  Google Optimize also doesn’t support CRO experiments for web or desktop applications, email campaigns or paid ad campaigns.Matomo A/B Testing, in contrast, allows you to run experiments in virtually every channel. We have three installation options — using JavaScript, server-side technology, or our mobile tracking SDK. These allow you to run split tests in any type of web or mobile app (including games), a desktop product, or on your website. Also, you can do different email marketing tests (e.g., compare subject line variants).

  A/B Testing 

  A/B testing (split testing) is the core feature of both products. Marketers use A/B testing to determine which creative elements such as website microcopy, button placements and banner versions, resonate better with target audiences. 

  You can benchmark different versions against one another to determine which variation resonates more with users. Or you can test an A version against B, C, D and beyond. This is called A/B/n testing. 

  Both Matomo A/B testing and Google Optimize let you test either separate page elements or two completely different landing page designs, using redirect tests. You can show different variants to different user groups (aka apply targeting criteria). For example, activate tests only for certain device types, locations or types of on-site behaviour. 

  The advantage of Matomo is that we don’t limit the number of concurrent experiments you can run. With Google Optimize, you’re limited to 5 simultaneous experiments. Likewise, 

  Matomo lets you select an unlimited number of experiment objectives, whereas Google caps the maximum choice to 3 predefined options per experiment. 

  Objectives are criteria the underlying statistical model will use to determine the best-performing version. Typically, marketers use metrics such as page views, session duration, bounce rate or generated revenue as conversion goals. 

  

  Multivariate testing (MVT)

  Multivariate testing (MVT) allows you to “pack” several A/B tests into one active experiment. In other words : You create a stack of variants to determine which combination drives the best marketing outcomes. 

  For example, an MVT experiment can include five versions of a web page, where each has a different slogan, product image, call-to-action, etc. Visitors are then served with a different variation. The tracking code collects data on their behaviours and desired outcomes (objectives) and reports the results.

  MVT saves marketers time as it’s a great alternative to doing separate A/B tests for each variable. Both Matomo and Google Optimize support this feature. However, Google Optimize caps the number of possible combinations at 16, whereas Matomo has no limits. 

  Redirect Tests

  Redirect tests, also known as split URL tests, allow you to serve two entirely different web page versions to users and compare their performance. This option comes in handy when you’re redesigning your website or want to test a localised page version in a new market. 

  Also, redirect tests are a great way to validate the performance of bottom-of-the-funnel (BoFU) pages as a checkout page (for eCommerce websites), a pricing page (for SaaS apps) or a contact/booking form (for a B2B service businesses). 

  You can do split URL tests with Google Optimize and Matomo A/B Testing. 

  Experiment Design 

  Google Optimize provides a visual editor for making simple page changes to your website (e.g., changing button colour or adding several headline variations). You can then preview the changes before publishing an experiment. For more complex experiments (e.g., testing different page block sequences), you’ll have to codify experiments using custom JavaScript, HTML and CSS.

  In Matomo, all A/B tests are configured on the server-side (i.e., by editing your website’s raw HTML) or client-side via JavaScript. Afterwards, you use the Matomo interface to start or schedule an experiment, set objectives and view reports. 

  Experiment Configuration 

  Marketers know how complex customer journeys can be. Multiple factors — from location and device to time of the day and discount size — can impact your conversion rates. That’s why a great CRO app allows you to configure multiple tracking conditions. 

  Matomo A/B testing comes with granular controls. First of all, you can decide which percentage of total web visitors participate in any given experiment. By default, the number is set to 100%, but you can change it to any other option. 

  Likewise, you can change which percentage of traffic each variant gets in an experiment. For example, your original version can get 30% of traffic, while options A and B receive 40% each. We also allow users to specify custom parameters for experiment participation. You can only show your variants to people in specific geo-location or returning visitors only. 

  Finally, you can select any type of meaningful objective to evaluate each variant’s performance. With Matomo, you can either use standard website analytics metrics (e.g., total page views, bounce rate, CTR, visit direction, etc) or custom goals (e.g., form click, asset download, eCommerce order, etc). 

  In other words : You’re in charge of deciding on your campaign targeting criteria, duration and evaluation objectives.

  A free Google Optimize account comes with three main types of user targeting options : 

  • Geo-targeting at city, region, metro and country levels. 

  • Technology targeting  by browser, OS or device type, first-party cookie, etc. 
  • Behavioural targeting based on metrics like “time since first arrival” and “page referrer” (referral traffic source). 

  Users can also configure other types of tracking scenarios (for example to only serve tests to signed-in users), using condition-based rules. 

  Reporting 

  Both Matomo and Google Optimize use different statistical models to evaluate which variation performs best. 

  Matomo relies on statistical hypothesis testing, which we use to count unique visitors and report on conversion rates. We analyse all user data (with no data sampling applied), meaning you get accurate reporting, based on first-hand data, rather than deductions. For that reason, we ask users to avoid drawing conclusions before their experiment participation numbers reach a statistically significant result. Typically, we recommend running an experiment for at least several business cycles to get a comprehensive report. 

  Google Optimize, in turn, uses Bayesian inference — a statistical method, which relies on a random sample of users to compare the performance rates of each creative against one another. While a Bayesian model generates CRO reports faster and at a bigger scale, it’s based on inferences.

  Model developers need to have the necessary skills to translate subjective prior beliefs about the probability of a certain event into a mathematical formula. Since Google Optimize is a proprietary tool, you cannot audit the underlying model design and verify its accuracy. In other words, you trust that it was created with the right judgement. 

  In comparison, Matomo started as an open-source project, and our source code can be audited independently by anyone at any time. 

  Another reporting difference to mind is the reporting delays. Matomo Cloud generates A/B reports within 6 hours and in only 1 hour for Matomo On-Premise. Google Optimize, in turn, requires 12 hours from the first experiment setup to start reporting on results. 

  When you configure a test experiment and want to quickly verify that everything is set up correctly, this can be an inconvenience.

  User Privacy & GDPR Compliance 

  Google Optimize works in conjunction with Google Analytics, which isn’t GDPR compliant. 

  For all website traffic from the EU, you’re therefore obliged to show a cookie consent banner. The kicker, however, is that you can only show an Optimize experiment after the user gives consent to tracking. If the user doesn’t, they will only see an original page version. Considering that almost 40% of global consumers reject cookie consent banners, this can significantly affect your results.

  This renders Google Optimize mostly useless in the EU since it would only allow you to run tests with a fraction ( 60%) of EU traffic — and even less if you apply any extra targeting criteria. 

  In comparison, Matomo is fully GDPR compliant. Therefore, our users are legally exempt from displaying cookie-consent banners in most EU markets (with Germany and the UK being an exception). Since Matomo A/B testing is part of Matomo web analytics, you don’t have to worry about GDPR compliance or breaches in user privacy. 

  Digital Experience Intelligence 

  You can get comprehensive statistical data on variants’ performance with Google Optimize. But you don’t get further insights on why some tests are more successful than others. 

  Matomo enables you to collect more insights with two extra features :

  • User session recordings : Monitor how users behave on different page versions. Observe clicks, mouse movements, scrolls, page changes, and form interactions to better understand the users’ cumulative digital experience. 
  • Heatmaps : Determine which elements attract the most users’ attention to fine-tune your split tests. With a standard CRO tool, you only assume that a certain page element does matter for most users. A heatmap can help you determine for sure. 

  Both of these features are bundled into your Matomo Cloud subscription. 

  Integrations 

  Both Matomo and Google Optimize integrate with multiple other tools. 

  Google Optimize has native integrations with other products in the marketing family — GA, Google Ads, Google Tag Manager, Google BigQuery, Accelerated Mobile Pages (AMP), and Firebase. Separately, other popular marketing apps have created custom connectors for integrating Google Optimize data. 

  Matomo A/B Testing, in turn, can be combined with other web analytics and CRO features such as Funnels, Multi-Channel Attribution, Tag Manager, Form Analytics, Heatmaps, Session Recording, and more ! 

  You can also conveniently export your website analytics or CRO data using Matomo Analytics API to analyse it in another app. 

  Pricing 

  Google Optimize is a free tool but has usage caps. If you want to schedule more than 5 concurrent experiments or test more than 16 variants at once, you’ll have to upgrade to Optimize 360. Optimize 360 prices aren’t listed publicly but are said to be closer to six figures per year. 

  Matomo A/B Testing is available with every Cloud subscription (starting from €19) and Matomo On-Premise users can also get A/B Testing as a plugin (starting from €199/year). In each case, there are no caps or data limits. 

  Google Optimize vs Matomo A/B Testing : Comparison Table

  Features/capabilities	Google Optimize	Matomo A/B test
  Supported channels	Web	Web, mobile, email, digital campaigns
  A/B testing
  Multivariate testing (MVT)
  Split URL tests
  Web analytics integration	Native with UA/GA4	Native with Matomo You can also migrate historical UA (GA3) data to Matomo
  Audience segmentation	Basic	Advanced
  Geo-targeting
  Technology targeting
  Behavioural targeting	Basic	Advanced
  Reporting model	Bayesian analysis	Statistical hypothesis testing
  Report availability	Within 12 hours after setup	6 hours for Matomo Cloud 1 hour for Matomo On-Premise
  Heatmaps		Included with Matomo Cloud
  Session recordings		Included with Matomo Cloud
  GDPR compliance
  Support	Self-help desk on a free tier	Self-help guides, user forum, email
  Price	Free limited tier	From €19 for Cloud subscription From €199/year as plugin for On-Premise

  Final Thoughts : Who Benefits the Most From an A/B Testing Tool ?

  Split testing is an excellent method for validating various assumptions about your target customers. 

  With A/B testing tools you get a data-backed answer to research hypotheses such as “How different pricing affects purchases ?”, “What contact button placement generates more clicks ?”, “Which registration form performs best with new app subscribers ?” and more. 

  Such insights can be game-changing when you’re trying to improve your demand-generation efforts or conversion rates at the BoFu stage. But to get meaningful results from CRO tests, you need to select measurable, representative objectives.

  For example, split testing different pricing strategies for low-priced, frequently purchased products makes sense as you can run an experiment for a couple of weeks to get a statistically relevant sample. 

  But if you’re in a B2B SaaS product, where the average sales cycle takes weeks (or months) to finalise and things like “time-sensitive discounts” or “one-time promos” don’t really work, getting adequate CRO data will be harder. 

  To see tangible results from CRO, you’ll need to spend more time on test ideation than implementation. Your team needs to figure out : which elements to test, in what order, and why. 

  Effective CRO tests are designed for a specific part of the funnel and assume that you’re capable of effectively identifying and tracking conversions (goals) at the selected stage. This alone can be a complex task since not all customer journeys are alike. For SaaS websites, using a goal like “free trial account registration” can be a good starting point.

  A good test also produces a meaningful difference between the proposed variant and the original version. As Nima Yassini, Partner at Deloitte Digital, rightfully argues :

  “I see people experimenting with the goal of creating an uplift. There’s nothing wrong with that, but if you’re only looking to get wins you will be crushed when the first few tests fail. The industry average says that only one in five to seven tests win, so you need to be prepared to lose most of the time”.

  In many cases, CRO tests don’t provide the data you expected (e.g., people equally click the blue and green buttons). In this case, you need to start building your hypothesis from scratch. 

  At the same time, it’s easy to get caught up in optimising for “vanity metrics” — such that look good in the report, but don’t quite match your marketing objectives. For example, better email headline variations can improve your email open rates. But if users don’t proceed to engage with the email content (e.g. click-through to your website or use a provided discount code), your efforts are still falling short. 

  That’s why developing a baseline strategy is important before committing to an A/B testing tool. Google Optimize appealed to many users because it’s free and allows you to test your split test strategy cost-effectively. 

  With its upcoming depreciation, many marketers are very committed to a more expensive A/B tool (especially when they’re not fully sure about their CRO strategy and its results). 

  Matomo A/B testing is a cost-effective, GDPR-compliant alternative to Google Optimize with a low learning curve and extra competitive features. 

  Discover if Matomo A/B Testing is the ideal Google Optimize alternative for your organization with our free 21-day trial. No credit card required.