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

    26 mars 2024, par Erin

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

    Maybe.

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

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

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

    The way you do this ?

    Incrementality testing.

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

    What is incrementality ?

    So, what exactly is incrementality ?

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

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

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

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

    This is incrementality.

    What is incrementally in marketing?

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

    What is incrementality testing ?

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

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

    The result ?

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

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

    How incrementality testing works

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

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

    • Ad impressions
    • Website visits
    • Leads
    • Sales

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

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

    1. Define a test and control group

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

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

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

    2. Execute your campaign

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

    It all depends on your goals and your primary channels.

    3. Measure outcomes

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

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

    4. Compare results

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

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

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

    Try Matomo for Free

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

    No credit card required

    Why it’s important to conduct incrementality tests

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

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

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

    Determine the right tactics for success

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

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

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

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

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

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

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

    Accurate data

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

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

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

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

    Try Matomo for Free

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

    No credit card required

    Get the most out of your marketing investment

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

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

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

    Increase revenue

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

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

    Get more traffic

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

    How to test incrementality

    How to test incrementality.

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

    Here’s how you test incrementality :

    Define your goals

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

    Segment your audience

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

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

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

    Launch the test at the right time

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

    Analyse the data and take action

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

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

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

    Lastly, take action based on the test findings. 

    Incrementality test examples 

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

    Here’s an example :

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

    Here’s another practical example :

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

    How to calculate incrementality in marketing

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

    Incremental profit 

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

    It’s calculated with the following formula :

    Test group profit – control group profit = incremental profit 

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

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

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

    Incremental lift

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

    Here’s the formula :

    (Test – Control)/Control x 100 = Lift

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

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

    (2,000 – 1,000)/1,000 x 100 = 100

    This turns out to be a 100% incremental lift.

    How to track incrementality with Matomo

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

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

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

    The result is more revenue and profit for your business. 

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

    Conducting incrementality tests may take time and expertise. 

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

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

  • Matomo analytics for wordpress

    15 octobre 2019, par Matomo Core Team — Community

    Self-hosting web analytics got a whole lot easier ! Introducing Matomo for WordPress

    Be the first to try it out ! Your feedback is much needed and appreciated

    Get a fully functioning Matomo (which is comparable to Google Analytics) in seconds ! How ? With the new Matomo Analytics for WordPress plugin. 

    Web analytics in WordPress has never been easier to get, or more powerful. Matomo Analytics for WordPress is the one-stop problem solver. It’ll save you time, money and give you the insights to help your website or business succeed. 

    Best of all, we get to further the goal of decentralising the internet. Our hope is for Matomo Analytics for WordPress to spread far and wide. We’re so excited that more and more people can now get their hands on this powerful, free, open-source analytics platform, in a few clicks !

    Download now and check it out !

    What do you get ?

    • No more signing up to third party analytics service (like Google)
    • No more sending away your valuable data to a third party service (like Google)
    • Easy setup – install with a few clicks, no tracking code installation or developer knowledge needed
    • 100% accurate data – no data sampling and no data limits 
    • Full data ownership – all data is stored on your servers and no one else can see your data
    • Privacy protection / GDPR compliance
    • Ecommerce tracking out-of-the-box (Woocommerce, Easy Digital Downloads, and MemberPress) and we’re keen to add many more over time
    • Powerful features – segmenting, comparing reports, different visualisations, real-time reports, visit logs and visitor profiles, Matomo Tag Manager, dashboards, data export, APIs, and many more
    • Compared to other WordPress solutions we don’t charge you extra for basic features that should work out-of-the-box
    • Just like Matomo On-Premise, Matomo Analytics for WordPress is free

    We need your feedback !

    We all know and love the versatility of WordPress – with over 55,000 plugins and all the different ways of hosting it. However, with this great versatility comes the potential for things to be missed, so we’re keen to hear your feedback.

    Thank you ! We really appreciate your help on this ❤️

    How do you get Matomo Analytics for WordPress ?

    You can then upload it in your WordPress by going to “Plugins => Add New”. During the upload, if you get an error like “Are you sure you want to do this ?”, we recommend you upload the extracted zip file on to your server and into your ‘wp-content/plugins’ folder manually using ftp or ssh. Make sure the plugin name is ‘matomo’.

    All you need is at least WordPress 4.8 and PHP 7.0 or later. MySQL 5.1+ is recommended. 

    The source code is available at : https://github.com/matomo-org/wp-matomo/

    In perfect harmony : Matomo and WordPress

    Matomo Analytics for WordPress

    The idea for this started two years ago when we realised the similarities between the Matomo and WordPress project. 

    Not only from a technological point of view – where both are based on PHP and MySQL and can be extended using plugins – but also from a philosophical, license and values point of view. We both believe in privacy, security, data ownership, openness, transparency, having things working out-of-the-box, simplicity etc. 

    WordPress is currently used on approximately 30% of all websites. Many of them use the self-hosted open-source WordPress version. Giving everyone in this market the opportunity to easily get a powerful web analytics platform for free, means a lot to us. We believe WordPress users get a real choice besides the standard solution of Google Analytics, and it furthers our effort and goal of decentralising the internet. 

    We’re hoping more people will be empowered to protect user privacy, have access to a great free and open-source tool, and keep control of data in their own hands.

    We hope you feel the same. Help us spread the word to your friends and get them in on this awesome new project !

    Share on facebook
    Share on twitter
    Share on linkedin

    FAQs

    Isn’t there already a WP-Matomo plugin for WordPress available ?

    Yes, the existing WP-Matomo (WP-Piwik) plugin is an awesome plugin to connect your existing Matomo On-Premise or Matomo Cloud account with WordPress. The difference is that this new plugin installs Matomo Analytics fully in your WordPress. So you get the convenience of having a powerful analytics platform within your WordPress.

    We highly recommend you install this new plugin if you use WordPress and are not running Matomo yet. 

    If you are already using Matomo on our Cloud or On-Premise, we’d still highly recommend you use WP-Matomo (WP-Piwik). So that you get an easier way of inserting the tracking code into your WordPress site and get insights faster.

    I have a high traffic website, will it be an issue ?

    If you have a lot of traffic, we’d advise you to install Matomo On-Premise separately. There’s no specific traffic threshold we can give you on when it’s better to use Matomo On-Premise. It really depends on your server. 

    We reckon if you have more than 500,000 page views a month, you may want to think about using Matomo On-Premise with WP-Matomo instead, but this is just an estimate. In general, if the load on your server is already quite high, then it might be better to install Matomo on a separate server. See also recommended server sizing for running Matomo.

    How do I report a bug or request a new feature in Matomo for WordPress ?

    Please create an issue, on our repository whenever you find a bug or if you have any suggestion or ideas of improvement. We want to build an outstanding analytics experience for WordPress !

    Have another question you’re dying to ask ? The Matomo for WordPress FAQ page might have the answer you need. 

    Matomo Analytics for WordPress newsletter

    Get ahead of the crowd – signup to our exclusive Matomo for WordPress newsletter to get the latest updates on this exciting new project.

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             dropdown.onchange = (function(){ _this.validate(); });<br />
           }<br />
         }<br />
       },<br />
    <br />
       textFieldError: function(input) {<br />
         input.className   = 'required invalid';<br />
         input.placeholder = input.getAttribute('data-required-field');<br />
       },<br />
    <br />
       removeTextFieldError: function(input) {<br />
         input.className   = 'required';<br />
         input.placeholder = '';<br />
       },<br />
    <br />
       onSelectCallback: function(input) {<br />
         if (typeof Widget === 'undefined' || !Widget.BasicDropdown) return;<br />
    <br />
         var dropdownEl = input.parentNode,<br />
             instances  = Widget.BasicDropdown.instances,<br />
             _this = this;<br />
    <br />
         for (var i = 0; i &lt; instances.length; ++i) {<br />
           var instance = instances[i];<br />
           if (instance.wrapperEl === dropdownEl) {<br />
             instance.onSelect = function(){ _this.validate() };<br />
           }<br />
         }<br />
       },<br />
    <br />
       updateFormAfterValidation: function() {<br />
         this.form.className   = this.setFormClassName();<br />
         this.submit.value     = this.submitButtonText();<br />
         this.submit.disabled  = !this.isValid;<br />
         this.submit.className = this.isValid ? 'submit' : 'disabled';<br />
       },<br />
    <br />
       setFormClassName: function() {<br />
         var name = this.form.className;<br />
    <br />
         if (this.isValid) {<br />
           return name.replace(/\s?mimi_invalid/, '');<br />
         } else {<br />
           if (name.indexOf('mimi_invalid') === -1) {<br />
             return name += ' mimi_invalid';<br />
           } else {<br />
             return name;<br />
           }<br />
         }<br />
       },<br />
    <br />
       submitButtonText: function() {<br />
         var invalidFields = document.querySelectorAll('.invalid'),<br />
             text;<br />
    <br />
         if (this.isValid || !invalidFields) {<br />
           text = this.submit.getAttribute('data-default-text');<br />
         } else {<br />
           if (invalidFields.length || invalidFields[0].className.indexOf('checkgroup') === -1) {<br />
             text = this.submit.getAttribute('data-invalid-text');<br />
           } else {<br />
             text = this.submit.getAttribute('data-choose-list');<br />
           }<br />
         }<br />
         return text;<br />
       },<br />
    <br />
       submitForm: function() {<br />
         this.formSubmitting();<br />
    <br />
         var _this = this;<br />
         window[this.callbackName] = function(response) {<br />
           delete window[this.callbackName];<br />
           document.body.removeChild(script);<br />
           _this.onSubmitCallback(response);<br />
         };<br />
    <br />
         var script = document.createElement('script');<br />
         script.src = this.formUrl('json');<br />
         document.body.appendChild(script);<br />
       },<br />
    <br />
       formUrl: function(format) {<br />
         var action  = this.form.action;<br />
         if (format === 'json') action += '.json';<br />
         return action + '?callback=' + this.callbackName + '&amp;' + serialize(this.form);<br />
       },<br />
    <br />
       formSubmitting: function() {<br />
         this.form.className  += ' mimi_submitting';<br />
         this.submit.value     = this.submit.getAttribute('data-submitting-text');<br />
         this.submit.disabled  = true;<br />
         this.submit.className = 'disabled';<br />
       },<br />
    <br />
       onSubmitCallback: function(response) {<br />
         if (response.success) {<br />
           this.onSubmitSuccess(response.result);<br />
         } else {<br />
           top.location.href = this.formUrl('html');<br />
         }<br />
       },<br />
    <br />
       onSubmitSuccess: function(result) {<br />
         if (result.has_redirect) {<br />
           top.location.href = result.redirect;<br />
         } else if(result.single_opt_in || !result.confirmation_html) {<br />
           this.disableForm();<br />
           this.updateSubmitButtonText(this.submit.getAttribute('data-thanks'));<br />
         } else {<br />
           this.showConfirmationText(result.confirmation_html);<br />
         }<br />
       },<br />
    <br />
       showConfirmationText: function(html) {<br />
         var fields = this.form.querySelectorAll('.mimi_field');<br />
    <br />
         for (var i = 0; i &lt; fields.length; ++i) {<br />
           fields[i].style['display'] = 'none';<br />
         }<br />
    <br />
         (this.form.querySelectorAll('fieldset')[0] || this.form).innerHTML = html;<br />
       },<br />
    <br />
       disableForm: function() {<br />
         var elements = this.form.elements;<br />
         for (var i = 0; i &lt; elements.length; ++i) {<br />
           elements[i].disabled = true;<br />
         }<br />
       },<br />
    <br />
       updateSubmitButtonText: function(text) {<br />
         this.submit.value = text;<br />
       },<br />
    <br />
       revalidateOnChange: function() {<br />
         var fields = this.form.querySelectorAll(&quot;.mimi_field.required&quot;),<br />
             _this = this;<br />
    <br />
         var onTextFieldChange = function() {<br />
           if (this.getAttribute('name') === 'signup[email]') {<br />
             if (_this.validEmail.test(this.value)) _this.validate();<br />
           } else {<br />
             if (this.value.length === 1) _this.validate();<br />
           }<br />
         }<br />
    <br />
         for (var i = 0; i &lt; fields.length; ++i) {<br />
           var inputs = fields[i].getElementsByTagName('input');<br />
           for (var j = 0; j &lt; inputs.length; ++j) {<br />
             if (this.fieldType(fields[i]) === 'text_field') {<br />
               inputs[j].onkeyup = onTextFieldChange;<br />
               inputs[j].onchange = onTextFieldChange; <br />
             } else {<br />
               inputs[j].onchange = function(){ _this.validate() };<br />
             }<br />
           }<br />
         }<br />
       }<br />
     });<br />
    <br />
     if (document.addEventListener) {<br />
       document.addEventListener(&quot;DOMContentLoaded&quot;, function() {<br />
         new Mimi.Signups.EmbedValidation();<br />
       });<br />
     }<br />
     else {<br />
       window.attachEvent('onload', function() {<br />
         new Mimi.Signups.EmbedValidation();<br />
       });<br />
     }<br />
    })(this);<br />
    &lt;/script&gt;