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• Google Analytics 4 and GDPR : Everything You Need to Know

  17 mai 2022, par Erin

  Four years have passed since the European General Data Protection Regulation (GDPR, also known as DSGVO in German, and RGPD in French) took effect.

  That’s ample time to get compliant, especially for an organisation as big and innovative as Google. Or is it ? 

  If you are wondering how GDPR affects Google Analytics 4 and what the compliance status is at present, here’s the lowdown. 

  Is Google Analytics 4 GDPR Compliant ?

  No. As of mid-2022, Google Analytics 4 (GA4) isn’t fully GDPR compliant. Despite adding extra privacy-focused features, GA4 still has murky status with the European regulators. After the invalidation of the Privacy Shield framework in 2020, Google is yet to regulate EU-US data protection. At present, the company doesn’t sufficiently protect EU citizens’ and residents’ data against US surveillance laws. This is a direct breach of GDPR.

  Google Analytics and GDPR : a Complex Relationship 

  European regulators have scrutinised Google since GDPR came into effect in 2018.

  While the company took steps to prepare for GDPR provisions, it didn’t fully comply with important regulations around user data storage, transfer and security.

  The relationship between Google and EU regulators got more heated after the Court of Justice of the European Union (CJEU) invalidated the Privacy Shield — a leeway Google used for EU-US data transfers. After 2020, GDPR litigation against Google followed. 

  This post summarises the main milestones in this story and explains the consequences for Google Analytics users. 

  

  2018 : Google Analytics Meets GDPR 

  In 2018, the EU adopted the General Data Protection Regulation (GDPR) — a set of privacy and data security laws, covering all member states. Every business interacting with EU citizens and/or residents had to comply.

  GDPR harmonised data protection laws across member states and put down extra provisions for what constitutes sensitive personal information (or PII). Broadly, PII includes any data about the person’s :

  • Racial or ethnic origin 
  • Employment status 
  • Religious or political beliefs
  • State of health 
  • Genetic or biometric data 
  • Financial records (such as payment method data)
  • Address and phone numbers 

  Businesses were barred from collecting this information without explicit consent (and even with it in some cases). If collected, such sensitive information is also subject to strict requirements on how it should be stored, secured, transferred and used. 

  7 Main GDPR Principles Explained 

  Article 5 of the GDPR lays out seven main GDPR principles for personal data and privacy protection : 

  • Lawfulness, fairness and transparency — data must be obtained legally, collected with consent and in adherence to laws. 
  • Purpose limitation — all personal information must be collected for specified, explicit and legal purposes. 
  • Data minimisation — companies must collect only necessary and adequate data, aligned with the stated purpose. 
  • Accuracy — data accuracy must be ensured at all times. Companies must have mechanisms to erase or correct inaccurate data without delays. 
  • Storage limitation — data must be stored only for as long as the stated purpose suggests. Though there’s no upper time limit on data storage. 
  • Integrity and confidentiality (security) — companies must take measures to ensure secure data storage and prevent unlawful or unauthorised access to it. 
  • Accountability — companies must be able to demonstrate adherence to the above principles. 

  Google claimed to have taken steps to make all of their products GDPR compliant ahead of the deadline. But in practice, this wasn’t always the case.

  In March 2018, a group of publishers admonished Google for not providing them with enough tools for GDPR compliance :

  “[Y]ou refuse to provide publishers with any specific information about how you will collect, share and use the data. Placing the full burden of obtaining new consent on the publisher is untenable without providing the publisher with the specific information needed to provide sufficient transparency or to obtain the requisite specific, granular and informed consent under the GDPR.”

  The proposed Google Analytics GDPR consent form was hard to implement and lacked customisation options. In fact, Google “makes unilateral decisions” on how the collected data is stored and used. 

  Users had no way to learn about or control all intended uses of people’s data — which made compliance with the second clause impossible. 

  Unsurprisingly, Google was among the first companies to face a GDPR lawsuit (together with Facebook). 

  By 2019, French data regulator CNIL, successfully argued that Google wasn’t sufficiently disclosing its data collection across products — and hence in breach of GDPR. After a failed appeal, Google had to pay a €50 million fine and promise to do better. 

  2019 : Google Analytics 4 Announcement 

  Throughout 2019, Google rightfully attempted to resolve some of its GDPR shortcomings across all products, Google Universal Analytics (UA) included. 

  They added a more visible consent mechanism for online tracking and provided extra compliance tips for users to follow. In the background, Google also made tech changes to its data processing mechanism to get on the good side of regulations.

  Though Google addressed some of the issues, they missed others. A 2019 independent investigation found that Google real-time-bidding (RTB) ad auctions still used EU citizens’ and residents’ data without consent, thanks to a loophole called “Push Pages”. But they managed to quickly patch this up before the allegations had made it to court. 

  In November 2019, Google released a beta version of the new product version — Google Analytics 4, due to replace Universal Analytics. 

  GA4 came with a set of new privacy-focused features for ticking GDPR boxes such as :

  • Data deletion mechanism. Users can now request to surgically extract certain data from the Analytics servers via a new interface. 
  • Shorter data retention period. You can now shorten the default retention period to 2 months by default (instead of 14 months) or add a custom limit.  
  • IP Anonymisation. GA4 doesn’t log or store IP addresses by default. 

  Google Analytics also updated its data processing terms and made changes to its privacy policy. 

  Though Google made some progress, Google Analytics 4 still has many limitations — and isn’t GDPR compliant. 

  2020 : Privacy Shield Invalidation Ruling 

  As part of the 2018 GDPR preparations, Google named its Irish entity (Google Ireland Limited) as the “data controller” legally responsible for EEA and Swiss users’ information. 

  The company announcement says : 

  

  Initially, Google assumed that this legal change would help them ensure GDPR compliance as “legally speaking” a European entity was set in charge of European data. 

  Practically, however, EEA consumers’ data was still primarily transferred and processed in the US — where most Google data centres are located. Until 2020, such cross-border data transfers were considered legal thanks to the Privacy Shield framework. 

  But in July 2020, The EU Court of Justice ruled that this framework doesn’t provide adequate data protection to digitally transmitted data against US surveillance laws. Hence, companies like Google can no longer use it. The Swiss Federal Data Protection and Information Commissioner (FDPIC) reached the same conclusion in September 2020. 

  The invalidation of the Privacy Shield framework put Google in a tough position.

   Article 14. f of the GDPR explicitly states : 

  “The controller (the company) that intends to carry out a transfer of personal data to a recipient (Analytics solution) in a third country or an international organisation must provide its users with information on the place of processing and storage of its data”.

  Invalidation of the Privacy Shield framework prohibited Google from moving data to the US. At the same time, GDPR provisions mandated that they must disclose proper data location. 

  But Google Analytics (like many other products) had no a mechanism for : 

  • Guaranteeing intra-EU data storage 
  • Selecting a designated regional storage location 
  • Informing users about data storage location or data transfers outside of the EU 

  And these factors made Google Analytics in direct breach of GDPR — a territory, where they remain as of 2022.

  2020-2022 : Google GDPR Breaches and Fines 

  The 2020 ruling opened Google to GDPR lawsuits from country-specific data regulators.

  Google Analytics in particular was under a heavy cease-fire. 

  • Sweden first fined Google for violating GDPR for no not fulfilling its obligations to request data delisting in 2020. 
  • France rejected Google Analytics 4 IP address anonymisation function as a sufficient measure for protecting cross-border data transfers. Even with it, US intelligence services can still access user IPs and other PII. France declared Google Analytics illegal and pressed a €150 million fine. 
  • Austria also found Google Analytics GDPR non-compliant and proclaimed the service as “illegal”. The authority now seeks a fine too. 

  The Dutch Data Protection Authority and  Norwegian Data Protection Authority also found Google Analytics guilty of a GDPR breach and seek to limit Google Analytics usage. 

  New privacy controls in Google Analytics 4 do not resolve the underlying issue — unregulated, non-consensual EU-US data transfer. 

  Google Analytics GDPR non-compliance effectively opens any website tracking or analysing European visitors to legal persecution.

  In fact, this is already happening. noyb, a European privacy-focused NGO, has already filed over 100 lawsuits against European websites using Google Analytics.

  2022 : Privacy Shield 2.0. Negotiations

  Google isn’t the only US company affected by the Privacy Shield framework invalidation. The ruling puts thousands of digital companies at risk of non-compliance.

  To settle the matter, US and EU authorities started “peace talks” in spring 2022.

  European Commission President Ursula von der Leyen said that they are working with the Biden administration on the new agreement that will “enable predictable and trustworthy data flows between the EU and US, safeguarding the privacy and civil liberties.” 

  However, it’s just the beginning of a lengthy negotiation process. The matter is far from being settled and contentious issues remain as we discussed on Twitter (come say hi !).

  

  For one, the US isn’t eager to modify its surveillance laws and is mostly willing to make them “proportional” to those in place in the EU. These modifications may still not satisfy CJEU — which has the power to block the agreement vetting or invalidate it once again. 

  While these matters are getting hashed out, Google Analytics users, collecting data about EU citizens and/or residents, remain on slippery grounds. As long as they use GA4, they can be subject to GDPR-related lawsuits. 

  To Sum It Up 

  • Google Analytics 4 and Google Universal Analytics are not GDPR compliant because of Privacy Shield invalidation in 2020. 
  • French and Austrian data watchdogs named Google Analytics operations “illegal”. Swedish, Dutch and Norwegian authorities also claim it’s in breach of GDPR. 
  • Any website using GA for collecting data about European citizens and/or residents can be taken to court for GDPR violations (which is already happening). 
  • Privacy Shield 2.0 Framework discussions to regulate EU-US data transfers have only begun and may take years. Even if accepted, the new framework(s) may once again be invalidated by local data regulators as has already happened in the past. 

  Time to Get a GDPR Compliant Google Analytics Alternative 

  Retaining 100% data ownership is the optimal path to GDPR compliance.

  By selecting a transparent web analytics solution that offers 100% data ownership, you can rest assured that no “behind the scenes” data collection, processing or transfers take place. 

  Unlike Google Analytics 4, Matomo offers all of the features you need to be GDPR compliant : 

  • Full data anonymisation 
  • Single-purpose data usage 
  • Easy consent and an opt-out mechanism 
  • First-party cookies usage by default 
  • Simple access to collect data 
  • Fast data removals 
  • EU-based data storage for Matomo Cloud (or storage in the country of your choice with Matomo On-Premise)

  Learn about your audiences in a privacy-centred way and protect your business against unnecessary legal exposure. 

  Start your 21-day free trial (no credit card required) to see how fully GDPR-compliant website analytics works ! 

  21 day free trial. No credit card required.

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• What Is Data Ethics & Why Is It Important in Business ?

  9 mai 2024, par Erin

  Data is powerful — every business on earth uses data. But some are leveraging it more than others.

  The problem ?

  Not all businesses are using data ethically.

  You need to collect, store, and analyse data to grow your business. But, if you aren’t careful, you could be crossing the line with your data usage into unethical territories.

  In a society where data is more valuable than ever, it’s crucial you perform ethical practices.

  In this article, we break down what data ethics is, why it’s important in business and how you can implement proper data ethics to ensure you stay compliant while growing your business.

  What is data ethics ?

  Data ethics are how a business collects, protects and uses data.

  It’s one field of ethics focused on organisations’ moral obligation to collect, track, analyse and interpret data correctly.

  

  Data ethics analyses multiple ways we use data :

  • Collecting data
  • Generating data
  • Tracking data
  • Analysing data
  • Interpreting data
  • Implementing activities based on data

  Data ethics is a field that asks, “Is this right or wrong ?”

  And it also asks, “Can we use data for good ?”

  If businesses use data unethically, they could get into serious hot water with their customers and even with the law.

  You need to use data to ensure you grow your business to the best of your ability. But, to maintain a clean slate in the eyes of your customers and authorities, you need to ensure you have strong data ethics.

  Why you need to follow data ethics principles

  In 2018, hackers broke into British Airways’ website by inserting harmful code, leading website visitors to a fraudulent site. 

  The result ? 

  British Airways customers gave their information to the hackers without realising it : credit cards, personal information, login information, addresses and more.

  While this was a malicious attack, the reality is that data is an integral part of everyday life. Businesses need to do everything they can to protect their customers’ data and use it ethically.

  Data ethics is crucial to understand as it sets the standard for what’s right and wrong for businesses. Without a clear grasp of data ethics, companies will willingly or neglectfully misuse data.

  With a firm foundation of data ethics, businesses worldwide can make a collective effort to function smoothly, protect their customers, and, of course, protect their own reputation. 

  3 benefits of leaning into data ethics

  We’re currently transitioning to a new world led by artificial intelligence.

  While AI presents endless opportunities for innovation in the business world, there are also countless risks at play, and it’s never been more important to develop trust with your customers and stakeholders.

  With an influx of data being created and tracked daily, you need to ensure your business is prioritising data ethics to ensure you maintain trust with your customers moving forward.

  

  Here are three benefits of data ethics that will help you develop trust, maintain a solid reputation and stay compliant to continue growing your business :

  1. Compliance with data privacy

  Privacy is everything. 

  In a world where our data is being collected nonstop, and we live more public lives than ever with social media, AI and an influx of recording and tracking in everyday life, you need to protect the privacy of your customers.

  One crucial way to protect that privacy is by complying with major data privacy regulations.

  Some of the most common regulations you need to remain compliant with include :

  • General Data Protection Regulation (GDPR)
  • California Consumer Privacy Act (CCPA)
  • Health Insurance Portability and Accountability Act (HIPAA)
  • General Personal Data Protection Law (LGPD)
  • Privacy and Electronic Communications (EC Directive) Regulations (PECR)

  While these regulations don’t directly address ethics, there’s a core overlap between privacy requirements like accountability, lawfulness and AI ethics.

  Matomo ensures you protect the privacy of your web and app users so you can track and improve your website performance with peace of mind.

  2. Maintain a good reputation

  While data ethics can help you maintain data privacy compliance, it can also help you maintain a good reputation online and offline.

  All it takes is one bad event like the British Airways breach for your company’s reputation to be ruined.

  If you want to keep a solid reputation and maintain trust with your stakeholders, customers and lawmakers, then you need to focus on developing strong data ethics.

  Businesses that invest time in establishing proper data ethics set the right foundation to protect their reputation, develop trust with stakeholders and create goodwill and loyalty.

  3. Increased trust means greater revenue

  What happens when you establish proper data ethics ?

  You’ll gain the trust of your customers, maintain a solid reputation and increase your brand image.

  Customers who trust you to protect their privacy and data want to keep doing business with you.

  So, what’s the end result for a business that values data ethics ?

  You’ll generate more revenue in the long run. Trust is one thing you should never put on the back burner if you have plans to keep growing your business. By leaning more into data ethics, you’ll be able to build that brand reputation that helps people feel comfortable buying your products and services on repeat.

  While spending time and money on data ethics may seem like an annoyance, the reality is that it’s a business investment that will pay dividends for years to come.

  5 core data ethics principles

  So, what exactly is involved in data ethics ?

  For most people, data ethics is a pretty broad and vague term. If you’re curious about the core pillars of data ethics, then keep reading.

  Here are five core data ethical principles you need to follow to ensure you’re protecting your customers’ data and maintaining trust :

  

  1. Data ownership

  The individual owns the data, not you. This is the first principle of data ethics. You don’t have control over someone else’s data. It’s theirs, and they have full ownership over it.

  Just as stealing a TV from an electronics store is a crime, stealing (or collecting) someone’s personal data without their consent is considered unlawful and unethical.

  Consent is the only way to ethically “own” someone’s data.

  How can you collect someone’s data ethically ?

  • Digital privacy policies
  • Signed, written agreements
  • Popups with checkboxes that allow you to track users’ behaviour

  Essentially, anytime you’re collecting data from your website or app users, you need to ensure you’re asking permission for that data.

  You should never assume a website visitor or customer is okay with you collecting your data automatically. Instead, ask permission to collect, track and use their data to avoid legal and ethical issues.

  2. Transparency

  The second core principle of data ethics within business is transparency. This means you need to be fully transparent on when, where and how you :

  • Collect data
  • Store data
  • Use data

  In other words, you need to allow your customers and website visitors to have a window inside your data activities.

  They need to be able to see exactly how you plan on using the data you’re collecting from them.

  For example, imagine you implemented a new initiative to personalise the website experience for each user based on individual behaviour. To do this, you’ll need to track cookies. In this case, you’d need to write up a new policy stating how this behavioural data is going to be collected, tracked and used.

  It’s within your website visitors’ rights to access this information so they can choose whether or not they want to accept or decline your website’s cookies.

  With any new data collection or tracking, you need to be 100% clear about how you’re going to use the data. You can’t be deceptive, misleading, or withholding any information on how you will use the data, as this is unethical and, in many cases, unlawful.

  3. Privacy

  Another important branch of ethics is privacy. The ethical implications of this should be obvious.

  When your users, visitors, or customers enter your sphere of influence and you begin collecting data on them, you are responsible for keeping that data private.

  When someone accepts the terms of your data usage, they’re not agreeing to have their data released to the public. They’re agreeing to let you leverage that data as their trusted business provider to better serve them. They expect you to maintain privacy.

  You can’t spread private information to third parties. You can’t blast this data to the public. 

  This is especially important if someone allows you to collect and use their personally identifiable information (PII), such as :

  • First and last name
  • Email address
  • Date of birth
  • Home address
  • Phone number

  To protect your audience’s data, you should only store it in a secure database. 

  

  For example, Matomo’s web analytics solution guarantees the privacy of both your users and analytics data.

  With Matomo, you have complete ownership of your data. Unlike other web analytics solutions that exploit your data for advertising purposes, Matomo users can use analytics with confidence, knowing that their data won’t be sold to advertisers.

  Learn more about data privacy with Matomo here.

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  4. Intention

  When you collect and store data, you need to tell your users why you’re collecting their data. But there’s another principle of data ethics that goes beyond the reason you give your customers.

  Intention is the reason you give yourself for collecting and using the data.

  Before you start collecting and storing data, you should ask yourself the following :

  • Why you need it
  • What you’ll gain from it
  • What changes you’ll be able to make after you analyse the data

  If your intention is wrong in any way, it’s unethical to collect the data :

  • You’re collecting data to hurt others
  • You’re collecting data to profit from your users’ weaknesses
  • You’re collecting data for any other malicious reason

  When you collect data, you need to have the right intentions to maintain proper data ethics ; otherwise, you could harm your brand, break trust and ruin your reputation.

  5. Outcomes

  You may have the best intentions, but sometimes, there are negative outcomes from data use.

  For example, British Airways’ intention was not to allow hackers to gain access and harm their users. But the reality is that their customers’ data was stolen and used for malicious purposes. While this isn’t technically unlawful, the outcome of collecting data ended badly.

  To ensure proper data ethics, you must have good standing with your data. This means protecting your users at all costs, maintaining a good reputation and ensuring proper privacy measures are set up.

  How to implement data ethics as a business leader

  As a business leader, CTO or CEO, it’s your responsibility to implement data ethics within your organisation. Here are some tips to implement data ethics based on the size and stage of your organisation :

  Startups

  If you’re a startup, you need to be mindful of which technology and tools you use to collect, store and use data to help you grow your business.

  It can be a real challenge to juggle all the moving parts of a startup since things can change so quickly. However, it’s crucial to establish a leader and allow easy access to ethical analysis resources to maintain proper data ethics early on.

  Small and medium-sized businesses

  As you begin scaling, you’ll likely be using even more technology. With each new business technique you implement, there will be new ways you’ll be collecting user data. 

  One of the key processes involved in managing data as you grow is to hire engineers who build out different technologies. You must have protocols, best practices and management overseeing the new technologies being built to ensure proper data ethics.

  Global businesses

  Have you scaled internationally ?

  There will be even more rules, laws, regulations and organisations to answer to if you start managing data unethically.

  You should have established teams or departments to ensure you follow proper privacy and data protocols worldwide. When you have a large organisation, you have more money and vast amounts of data. This makes you a bigger target for leaks, ransomware and hackers.

  You should ensure you have cross-departmental groups working to establish ongoing protocols and training to keep your data management in good standing.

  Leverage data ethically with Matomo

  Data is powerful.

  It’s a crucial point of leverage that’s required to stay competitive.

  However, improper use and management of data can give you a bad reputation, break trust and even cause you legal trouble.

  That’s why you must maintain good data ethics within your organisation.

  One of the most important places to set up proper data ethics and privacy measures is with your website analytics.

  Matomo is the leading, privacy-friendly web analytics solution in the world. It automatically collects, stores, and tracks data across your website ethically.

  With over 1 million websites using Matomo, you get to take full control over your website performance with :

  • Accurate data (no data sampling)
  • Privacy-friendly and GDPR-compliant analytics
  • Open-source for transparency and to create a custom solution for you

  Try Matomo free for 21-days. No credit card required.

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• 10 Customer Segments Examples and Their Benefits

  9 mai 2024, par Erin

  Now that companies can segment buyers, the days of mass marketing are behind us. Customer segmentation offers various benefits for marketing, content creation, sales, analytics teams and more. Without customer segmentation, your personalised marketing efforts may fall flat. 

  According to the Twilio 2023 state of personalisation report, 69% of business leaders have increased their investment in personalisation. There’s a key reason for this — customer retention and loyalty directly benefit from personalisation. In fact, 62% of businesses have cited improved customer retention due to personalisation efforts. The numbers don’t lie. 

  Keep reading to learn how customer segments can help you fine-tune your personalised marketing campaigns. This article will give you a better understanding of customer segmentation and real-world customer segment examples. You’ll leave with the knowledge to empower your marketing strategies with effective customer segmentation. 

  What are customer segments ?

  Customer segments are distinct groups of people or organisations with similar characteristics, needs and behaviours. Like different species of plants in a garden, each customer segment has specific needs and care requirements. Customer segments are useful for tailoring personalised marketing campaigns for specific groups.

  Personalised marketing has been shown to have significant benefits — with 56% of consumers saying that a personalised experience would make them become repeat buyers. 

  Successful marketing teams typically focus on these types of customer segmentation :

  

  1. Geographic segmentation : groups buyers based on their physical location — country, city, region or climate — and language.
  2. Purchase history segmentation : categorises buyers based on their purchasing habits — how often they make purchases — and allows brands to distinguish between frequent, occasional and one-time buyers. 
  3. Product-based segmentation : groups buyers according to the products they prefer or end up purchasing. 
  4. Customer lifecycle segmentation : segments buyers based on where they are in the customer journey. Examples include new, repeat and lapsed buyers. This segmentation category is also useful for understanding the behaviour of loyal buyers and those at risk of churning. 
  5. Technographic segmentation : focuses on buyers’ technology preferences, including device type, browser type, and operating system. 
  6. Channel preference segmentation : helps us understand why buyers prefer to purchase via specific channels — whether online channels, physical stores or a combination of both. 
  7. Value-based segmentation : categorises buyers based on their average purchase value and sensitivity to pricing, for example. This type of segmentation can provide insights into the behaviours of price-conscious buyers and those willing to pay premium prices. 

  Customer segmentation vs. market segmentation

  Customer segmentation and market segmentation are related concepts, but they refer to different aspects of the segmentation process in marketing. 

  Market segmentation is the broader process of dividing the overall market into homogeneous groups. Market segmentation helps marketers identify different groups based on their characteristics or needs. These market segments make it easier for businesses to connect with new buyers by offering relevant products or new features. 

  On the other hand, customer segmentation is used to help you dig deep into the behaviour and preferences of your current customer base. Marketers use customer segmentation insights to create buyer personas. Buyer personas are essential for ensuring your personalised marketing efforts are relevant to the target audience. 

  10 customer segments examples

  Now that you better understand different customer segmentation categories, we’ll provide real-world examples of how customer segmentation can be applied. You’ll be able to draw a direct connection between the segmentation category or categories each example falls under.

  One thing to note is that you’ll want to consider privacy and compliance when you are considering collecting and analysing types of data such as gender, age, income level, profession or personal interests. Instead, you can focus on these privacy-friendly, ethical customer segmentation types :

  1. Geographic location (category : geographic segmentation)

  The North Face is an outdoor apparel and equipment company that relies on geographic segmentation to tailor its products toward buyers in specific regions and climates. 

  For instance, they’ll send targeted advertisements for insulated jackets and snow gear to buyers in colder climates. For folks in seasonal climates, The North Face may send personalised ads for snow gear in winter and ads for hiking or swimming gear in summer. 

  The North Face could also use geographic segmentation to determine buyers’ needs based on location. They can use this information to send targeted ads to specific customer segments during peak ski months to maximise profits.

  2. Preferred language (category : geographic segmentation)

  Your marketing approach will likely differ based on where your customers are and the language they speak. So, with that in mind, language may be another crucial variable you can introduce when identifying your target customers. 

  Language-based segmentation becomes even more important when one of your main business objectives is to expand into new markets and target international customers — especially now that global reach is made possible through digital channels. 

  Coca-Cola’s “Share a Coke” is a multi-national campaign with personalised cans and bottles featuring popular names from countries around the globe. It’s just one example of targeting customers based on language.

  3. Repeat users and loyal customers (category : customer lifecycle segmentation)

  Sephora, a large beauty supply company, is well-known for its Beauty Insider loyalty program. 

  It segments customers based on their purchase history and preferences and rewards their loyalty with gifts, discounts, exclusive offers and free samples. And since customers receive personalised product recommendations and other perks, it incentivises them to remain members of the Beauty Insider program — adding a boost to customer loyalty.

  By creating a memorable customer experience for this segment of their customer base, staying on top of beauty trends and listening to feedback, Sephora is able to keep buyers coming back.

  

  4. New customers (category : customer lifecycle segmentation)

  Subscription services use customer lifecycle segmentation to offer special promotions and trials for new customers. 

  HBO Max is a great example of a real company that excels at this strategy : 

  They offer 40% savings on an annual ad-free plan, which targets new customers who may be apprehensive about the added monthly cost of a recurring subscription.

  This marketing strategy prioritises fostering long-term customer relationships with new buyers to avoid high churn rates. 

  5. Cart abandonment (category : purchase history segmentation)

  With a rate of 85% among US-based mobile users, cart abandonment is a huge issue for ecommerce businesses. One way to deal with this is to segment inactive customers and cart abandoners — those who showed interest by adding products to their cart but haven’t converted yet — and send targeted emails to remind them about their abandoned carts.

  E-commerce companies like Ipsy, for example, track users who have added items to their cart but haven’t followed through on the purchase. The company’s messaging often contains incentives — like free shipping or a limited-time discount — to encourage passive users to return to their carts. 

  Research has found that cart abandonment emails with a coupon code have a high 44.37% average open rate. 

  6. Website activity (category : technographic segmentation)

  It’s also possible to segment customers based on website activity. Now, keep in mind that this is a relatively broad approach ; it covers every interaction that may occur while the customer is browsing your website. As such, it leaves room for many different types of segmentation. 

  For instance, you can segment your audience based on the pages they visited, the elements they interacted with — like CTAs and forms — how long they stayed on each page and whether they added products to their cart. 

  Matomo’s Event Tracking can provide additional context to each website visit and tell you more about the specific interactions that occur, making it particularly useful for segmenting customers based on how they spend their time on your website. 

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  Amazon segments its customers based on browsing behaviour — recently viewed products and categories, among other things — which, in turn, allows them to improve the customer’s experience and drive sales.

  7. Traffic source (category : channel segmentation) 

  You can also segment your audience based on traffic sources. For example, you can determine if your website visitors arrived through Google and other search engines, email newsletters, social media platforms or referrals. 

  In other words, you’ll create specific audience segments based on the original source. Matomo’s Acquisition feature can provide insights into five different types of traffic sources — search engines, social media, external websites, direct traffic and campaigns — to help you understand how users enter your website.

  You may find that most visitors arrive at your website through social media ads or predominantly discover your brand through search engines. Either way, by learning where they’re coming from, you’ll be able to determine which conversion paths you should prioritise and optimise further. 

  8. Device type (category : technographic segmentation)

  Device type is customer segmentation based on the devices that potential customers may use to access your website and view your content. 

  It’s worth noting that, on a global level, most people (96%) use mobile devices — primarily smartphones — for internet access. So, there’s a high chance that most of your website visitors are coming from mobile devices, too. 

  However, it’s best not to assume anything. Matomo can detect the operating system and the type of device — desktop, mobile device, tablet, console or TV, for example. 

  By introducing the device type variable into your customer segmentation efforts, you’ll be able to determine if there’s a preference for mobile or desktop devices. In return, you’ll have a better idea of how to optimise your website — and whether you should consider developing an app to meet the needs of mobile users.

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  9. Browser type (category : technographic segmentation)

  Besides devices, another type of segmentation that belongs to the technographic category and can provide valuable insights is browser-related. In this case, you’re tracking the internet browser your customers use. 

  Many browser types are available — including Google Chrome, Microsoft Edge, Safari, Firefox and Brave — and each may display your website and other content differently. 

  So, keeping track of your customers’ preferred choices is important. Otherwise, you won’t be able to fully understand their online experience — or ensure that these browsers are displaying your content properly. 

  

  10. Ecommerce activity (category : purchase history, value based, channel or product based segmentation) 

  Similar to website activity, looking at ecommerce activity can tell your sales teams more about which pages the customer has seen and how they have interacted with them. 

  With Matomo’s Ecommerce Tracking, you’ll be able to keep an eye on customers’ on-site behaviours, conversion rates, cart abandonment, purchased products and transaction data — including total revenue and average order value.

  Considering that the focus is on sales channels — such as your online store — this approach to customer segmentation can help you improve the sales experience and increase profitability. 

  Start implementing these customer segments examples

  With ever-evolving demographics and rapid technological advancements, customer segmentation is increasingly complex. The tips and real-world examples in this article break down and simplify customer segmentation so that you can adapt to your customer base. 

  Customer segmentation lays the groundwork for your personalised marketing campaigns to take off. By understanding your users better, you can effectively tailor each campaign to different segments. 

  If you’re ready to see how Matomo can elevate your personalised marketing campaigns, try it for free for 21 days. No credit card required.

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