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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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• CRO Program : Best Practices and KPIs to Track [2024]

  8 mai 2024, par Erin

  Driving traffic to your website is only one part of the equation ; the second part is getting those visitors to convert by completing a desired action — creating an account, signing up for a newsletter or completing a purchase. 

  But if you fail to optimise your website for conversions, you’ll have a hard time guiding visitors further down the funnel and turning them into customers.

  That’s where a CRO program (or conversion rate optimisation) can help. 

  This article will cover conversion rate optimisation best practices and outline key metrics and KPIs to start tracking to see an improvement in your conversion rates.

  What is a CRO program ? 

  In the simplest terms, a CRO program — also called a CRO plan — is a digital marketing strategy. It focuses on implementing different tactics that can lead to an increase in conversion rate and maximising revenue. 

  

  One thing to remember is that the definition of “conversion” varies from business to business. The most obvious type of conversion would be a financial transaction or a completed form — but it comes down to what you consider a valuable action. 

  Many different actions can count as conversions, depending on your marketing goals. 

  Besides making a purchase, other common examples of key conversion moments include creating a new account, signing up for a free trial, booking a demo and subscribing to an email newsletter. 

  Another thing worth noting is that while the average conversion rate on e-commerce websites is 3.76%, it might fluctuate across different industries and device types. Case in point — desktop devices have higher conversion rates than mobile devices, clocking in at 4.79% and 3.32%, respectively. 

  So, in addition to defining your key conversion moments, you should also go over conversion insights relevant to your specific industry. 

  

  The importance of conversion rate optimisation 

  You’d be right to assume that the ultimate goal of a conversion rate optimisation process is to drive revenue through higher conversion rates — but don’t focus solely on the numbers. The core principle of a CRO program is improving the customer experience. Once you’ve achieved that, the increase in conversion rate will follow. 

  

  According to a recent report, global conversion rate optimisation (CRO) software sales are expected to reach $3.7 billion by 2032 — up from $1.1 billion in 2021. 

  This growth indicates the increasing interest in strategies and tools that can help optimise the conversion funnel. Businesses are looking for ways to keep potential customers engaged and improve the average conversion rate — without necessarily increasing their spending. 

  Here are a few reasons why a CRO program deserves a spot in your broader digital marketing strategies : 

  • It can lower your cost per acquisition (CPA) : A CRO program is about optimising your conversion funnel by leveraging existing assets and website traffic rather than increasing your spending — which lowers the costs of acquiring new customers and, in turn, drives ROI. 
  • It can maximise customer lifetime value (CLV) : If you can turn one-time buyers into repeat customers, you’ll be one step closer to building a loyal user base and increasing your CLV. 
  • It can lead to increased sales and boost your revenue : Higher conversion rates typically mean higher revenue ; that’s arguably the most obvious benefit of implementing a CRO program. 
  • It improves the overall user experience : The goal is to make your site more accessible, easier to navigate and more engaging. Delivering the experience people want — and expect — when navigating your website is one of the core principles of a CRO program.
  • It helps you to get to know your customers better : You can’t meet your customers’ needs without taking the time to know them, create user personas and understand their preferences, pain points and conversion barriers they may be facing. 

  Conversion optimisation gives you a competitive edge in revenue and brand reputation. 

  5 CRO best practices 

  

  Here are five conversion rate optimisation strategies and best practices that can make a real difference in the customer experience — and drive potential conversions. 

  Create a CRO roadmap in advance 

  First and foremost, you’ll need a well-defined “game plan” that aligns with and reflects your conversion goals. 

  A CRO roadmap is a detailed manual that outlines how to implement different elements of your CRO-related efforts. Marketing teams can refer to this step-by-step framework for test planning, prioritisation and resource allocation while optimising their marketing strategy. 

  While conversion rate optimisation can be a complex process — especially when you don’t know what to tackle first — we’ve found that there are three things you need to consider when setting the foundations of a successful CRO program : 

  • The “why” behind your website traffic : You’re likely using different online marketing strategies — from SEO to pay-per-click (PPC). So, it’s best to start by gathering channel-specific conversion insights through marketing attribution. Then identify which of these efforts have the biggest impact on your target audience. 
  • The so-called “conversion blockers” that tell you where and why visitors tend to leave without completing a desired action : Funnel analysis might reveal problematic pages — drop-off points where you tend to lose most of your visitors. 
  • Your “hooks” : User feedback can be of great help here ; you can learn a lot by simply asking your customers to fill out a quick online survey and tell you what motivated them to take action.

  Before working on that “game plan,” perform a pre-test analysis. 

  Matomo combines web analytics and user behaviour analytics with features like Heatmaps, Session Recordings, Form Analytics, Funnel Analytics, A/B Testing and User Flow. It can give you those initial benchmarks for measuring progress and a potential increase in conversion rate. 

  Validate your ideas with A/B and multivariate testing 

  Conversion rate optimisation is an iterative process. So, it shouldn’t come as a surprise that A/B testing variants of page layouts, CTAs, headlines, copy and other elements is a big part of it.

  Multivariate and A/B testing allows you to test a wide range of elements across your site and identify what works — and, more importantly, what doesn’t — in terms of driving conversions.

  On that note, Matomo’s A/B Testing feature can support your conversion rate optimisation process by identifying variants that perform better based on statistical significance. 

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  Get to know your website visitors 

  Driving conversions comes down to understanding potential customer’s pain points and needs — and delivering an experience that positions you as the solution and gets them to take action. 

  Here are a few things that can help you understand your website visitors better : 

  • Collecting customer feedback through surveys and using it to identify main areas for improvement 
  • Creating detailed customer personas and optimising your website design and messaging based on your target audience’s pain points, needs and wants 
  • Using heatmaps — colour-coded data visualisation tools that illustrate user interactions — and scroll maps to get a comprehensive overview of online sessions and identify the most engaging elements and those that stand out as potential conversion barriers 

  Matomo’s Heatmaps can help you identify the most-clicked elements on the page and show how far users scroll — providing powerful user insights you can use to optimise these pages.

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  Remove friction points 

  As we previously discussed, identifying friction points and barriers to conversion — issues that prevent visitors from converting — is one of the crucial aspects of developing a CRO plan. 

  Many different “conversion blockers” are worth looking into, including : 

  • Lengthy or otherwise complex checkout processes 
  • No guest checkout feature 
  • Device type, browser and OS compatibility issues 
  • Slow site speed and other technical issues
  • Lack of free shipping and limited payment methods 
  • Absence of social proof (customer reviews and testimonials) and trust badges

  Once you’ve identified what’s slowing down or completely discouraging users from reaching key conversion moments, take the time to address it. 

  Switch to text-based CTAs 

  Calls-to-action (CTAs) play a crucial role in guiding customers from interest to action. However, sometimes they fail to do their job — encouraging website visitors to proceed to the next step — effectively. 

  The most obvious reason is that your CTAs aren’t visually engaging or clear enough. In that case, you can try using action-oriented language and stronger visual elements and aligning the CTA copy with the context of the page. 

  But more often than not, the issue comes down to a phenomenon called “banner blindness” — the tendency of website visitors to ignore (either intentionally or unintentionally) elements on a page that resemble banner ads. 

  And if that’s what’s preventing visitors from converting, consider switching to text-based CTAs. 

  Conversion rate optimisation metrics and KPIs 

  At this point, you should know the outcomes you hope to achieve. Your next step should be to figure out how you’re going to measure and analyse results — and identify the changes that made the most impact on your conversion funnel. 

  After all, your CRO action plan should be based on data — assumptions and “gut feelings” will rarely lead to a notable increase in conversion rates. 

  

  That brings us to key performance indicators (KPIs) : 

  Tracking CRO metrics and website KPIs can help you understand the customer’s journey and path to purchase, identify opportunities for improving the user experience (UX) and determine how to optimise conversions.

  That said, you shouldn’t try to track every metric in the book ; think about your ultimate goal and identify the metrics and KPIs most relevant to your business. 

  We’ll assume that you’re already tracking macro- and micro-conversions. However, we’ve outlined a few additional key conversion rate optimisation metrics you should keep an eye on to make sure that your CRO program is performing as intended : 

  • Cost-per-conversion : By measuring how much you spend on each successful conversion — again, completed forms, sign-ups and sales all count as key conversion moments — you’ll be in a better position to assess the cost-effectiveness of your online marketing strategies.
  • Starter rate : This metric tells you the number of people who start filling out the form, after seeing it. This metric is particularly important for companies that rely on getting leads from forms. 
  • Average order value (AOV) : This metric is important for e-commerce sites to understand the value of their transactions. AOV calculates the average monetary value of each order.

  That’s not all ; you can also use a web analytics tool like Matomo to gain granular insights into visitors : 

  • Unique, new and returning visitors : Tracking the number of new and returning visitors your website gets within a given timeframe will help you understand your user base and determine if your content resonates with them. While you want a constant stream of new traffic, don’t overlook the importance of returning visitors ; they’re the foundation of a loyal customer base.
  • User flows : By analysing the user flows, you’ll have a visual representation of how visitors use your website, which will help you understand their journey and the specific path they take. 
  • Bounce rate : This metric tells you how many users viewed a single page on your site and ended up leaving before they took any kind of action. As such, it’s a clear indicator of how good your content, CTAs and website layout are at keeping users engaged.
  • Exit rate : Another key metric to track is the exit rate — the percentage of users who drop off at a specific page. High-exit pages usually lack important information and CTAs, cause frustration or otherwise fail to meet users’ expectations. Keep in mind that there’s a difference between bounce rate and exit rate — the latter involves users who viewed at least one other page. 

  There are many other user engagement metrics you should keep an eye on in addition to the ones mentioned above — including time on-page, actions per visit, scroll depth and traffic source. You’ll find all this information — and more — in Matomo’s Page Analytics Report. 

  Conclusion 

  Implementing a CRO program can be a time-consuming and iterative process. However, it’s vital for guiding your marketing efforts and making data-driven decisions that’ll ultimately help you drive growth and reach your business goals. 

  It’s best to start by identifying where your website visitors come from and what contributes to — or prevents them from — taking further action. But that’s easier said than done. You’ll need to leverage web analytics tools like Matomo to gather powerful user insights and monitor your website’s performance. 

  As an all-in-one, privacy-friendly web analytics solution, Matomo combines traditional web analytics and advanced behavioural analytics — delivering a consistent experience based on 100% accurate, unsampled data.

  Join the 1 million websites that have chosen Matomo as their web analytics platform. Start your 21-day free trial today — and see how Matomo can help you improve your website’s conversion rates. No credit card required.

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