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• Marketing Cohort Analysis : How To Do It (With Examples)

  12 janvier 2024, par Erin

  The better you understand your customers, the more effective your marketing will become. 

  The good news is you don’t need to run expensive focus groups to learn much about how your customers behave. Instead, you can run a marketing cohort analysis using data from your website analytics.

  A marketing cohort groups your users by certain traits and allows you to drill down to discover why they take the actions on your website they do. 

  In this article, we’ll explain what a marketing cohort analysis is, show you what you can achieve with this analytical technique and provide a step-by-step guide to pulling it off. 

  What is cohort analysis in marketing ?

  A marketing cohort analysis is a form of behavioural analytics where you analyse the behavioural patterns of users who share a similar trait to better understand their actions. 

  These shared traits could be anything like the date they signed up for your product, users who bought your service through a paid ad or email subscribers from the United Kingdom.

  It’s a fantastic way to improve your marketing efforts, allowing you to better understand complex user behaviours, personalise campaigns accordingly and improve your ROI. 

  You can run marketing analysis using an analytics platform like Google Analytics or Matomo. With these platforms, you can measure how cohorts perform using traffic, engagement and conversion metrics.

  

  There are two types of cohort analysis : acquisition-based cohort analysis and behavioural-based cohort analysis.

  Acquisition-based cohort analysis

  An acquisition-based cohort divides users by the date they purchased your product or service and tracks their behaviour afterward. 

  For example, one cohort could be all the users who signed up for your product in November. Another could be the users who signed up for your product in October. 

  You could then run a cohort analysis to see how the behaviour of the two cohorts differed. 

  Did the November cohort show higher engagement rates, increased frequency of visits post-acquisition or quicker conversions compared to the October cohort ? Analysing these cohorts can help with refining marketing strategies, optimising user experiences and improving retention and conversion rates.

  As you can see from the example, acquisition-based cohorts are a great way to track the initial acquisition and how user behaviour evolves post-acquisition.

  Behavioural-based cohort analysis

  A behavioural-based cohort divides users by their actions on your site. That could be their bounce rate, the number of actions they took on your site, their average time on site and more.

  

  Behavioural cohort analysis gives you a much deeper understanding of user behaviour and how they interact with your website.

  What can you achieve with a marketing cohort analysis ?

  A marketing cohort analysis is a valuable tool that can help marketers and product teams achieve the following goals :

  

  Understand which customers churn and why

  Acquisition and behavioural cohort analyses help marketing teams understand when and why customers leave. This is one of the most common goals of a marketing cohort analysis. 

  Learn which customers are most valuable

  Want to find out which channels create the most valuable customers or what actions customers take that increase their loyalty ? You can use a cohort analysis to do just that. 

  For example, you may find out you retain users who signed up via direct traffic better than those that signed up from an ad campaign. 

  Discover how to improve your product

  You can even use cohort analysis to identify opportunities to improve your website and track the impact of your changes. For example, you could see how visitor behaviour changes after a website refresh or whether visitors who take a certain action make more purchases. 

  Find out how to improve your marketing campaign

  A marketing cohort analysis makes it easy to find out which campaigns generate the best and most profitable customers. For example, you can run a cohort analysis to determine which channel (PPC ads, organic search, social media, etc.) generates customers with the lowest churn rate. 

  If a certain ad campaign generates the low-churn customers, you can allocate a budget accordingly. Alternatively, if customers from another ad campaign churn quickly, you can look into why that may be the case and optimise your campaigns to improve them. 

  Measure the impact of changes

  You can use a behavioural cohort analysis to understand what impact changes to your website or product have on active users. 

  If you introduced a pricing page to your website, for instance, you could analyse the behaviour of visitors who interacted with that page compared to those who didn’t, using behavioural cohort analysis to gauge the impact of these website changes on engagemen or conversions.

  The problem with cohort analysis in Google Analytics

  Google Analytics is often the first platform marketers turn to when they want to run a cohort analysis. While it’s a free solution, it’s not the most accurate or easy to use and users often encounter various issues. 

  For starters, Google Analytics can’t process user visitor data if they reject cookies. This can lead to an inaccurate view of traffic and compromise the reliability of your insights.

  In addition, GA is also known for sampling data, meaning it provides a subset rather than the complete dataset. Without the complete view of your website’s performance, you might make the wrong decisions, leading to less effective campaigns, missed opportunities and difficulties in reaching marketing goals.

  How to analyse cohorts with Matomo

  Luckily, there is an alternative to Google Analytics. 

  As the leading open-source web analytics solution, Matomo offers a robust option for cohort analysis. With its 100% accurate data, thanks to the absence of sampling, and its privacy-friendly tracking, users can rely on the data without resorting to guesswork. It is a premium feature included with our Matomo Cloud or available to purchase on the Matomo Marketplace for Matomo On-Premise users.

  Below, we’ll show how you can run a marketing cohort analysis using Matomo.

  Set a goal

  Setting a goal is the first step in running a cohort analysis with any platform. Define what you want to achieve from your analysis and choose the metrics you want to measure. 

  For example, you may want to improve your customer retention rate over the first 90 days. 

  Define cohorts

  Next, create cohorts by defining segmentation criteria. As we’ve discussed above, this could be acquisition-based or behavioural. 

  Matomo makes it easy to define cohorts and create charts. 

  In the sidebar menu, click Visitors > Cohorts. You’ll immediately see Matomo’s standard cohort report (something like the one below).

  

  In the example above, we’ve created cohorts by bounce rate. 

  You can view cohorts by weekly, monthly or yearly periods using the date selector and change the metric using the dropdown. Other metrics you can analyse cohorts by include :

  • Unique visitors
  • Return visitors
  • Conversion rates
  • Revenue
  • Actions per visit

  Change the data selection to create your desired cohort, and Matomo will automatically generate the report. 

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  Analyse your cohort chart

  Cohort charts can be intimidating initially, but they are pretty easy to understand and packed with insights. 

  Here’s an example of an acquisition-based cohort chart from Matomo looking at the percentage of returning visitors :

  

  Cohorts run vertically. The oldest cohort (visitors between February 13 – 19) is at the top of the chart, with the newest cohort (April 17 – 23) at the bottom. 

  The period of time runs horizontally — daily in this case. The cells show the corresponding value for the metric we’re plotting (the percentage of returning visitors). 

  For example, 98.69% of visitors who landed on your site between February 13 – 19, returned two weeks later. 

  Usually, running one cohort analysis isn’t enough to identify a problem or find a solution. That’s why comparing several cohort analyses or digging deeper using segmentation is important.

  Segment your cohort chart

  Matomo lets you dig deeper by segmenting each cohort to examine their behaviour’s specifics. You can do this from the cohort report by clicking the segmented visitor log icon in the relevant row.

  

  

  Segmenting cohorts lets you understand why users behave the way they do. For example, suppose you find that users you purchased on Black Friday don’t return to your site often. In that case, you may want to rethink your offers for next year to target an audience with potentially better customer lifetime value. 

  Start using Matomo for marketing cohort analysis

  A marketing cohort analysis can teach you a lot about your customers and the health of your business. But you need the right tools to succeed. 

  Matomo provides an effective and privacy-first way to run your analysis. You can create custom customer segments based on almost anything, from demographics and geography to referral sources and user behaviour. 

  Our custom cohort analysis reports and colour-coded visualisations make it easy to analyse cohorts and spot patterns. Best of all, the data is 100% accurate. Unlike other web analytics solution or cohort analysis tools, we don’t sample data. 

  Find out how you can use Matomo to run marketing cohort analysis by trialling us free for 21 days. No credit card required.

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• The Guide to an Ethical Web : With Big Data Comes Big Responsibility

  13 mars, par Alex Carmona

  Roughly two-thirds of Earth’s 8 billion people use the internet for communication, education, entertainment, business and more. We are connected globally in ways previous generations could’ve never dreamed of. It’s been a wild ride, and we’re just starting.

  Many users have learned that experiences online can be a mix of good and bad. Sometimes, the bad can feel like it outweighs the good, particularly when large tech companies use our data shadily, cut corners on accessibility or act in any other way that devalues the human being behind the screen.

  As fellow internet citizens, what responsibility do we have to create a more ethical web for our customers ?

  In this article, we’ll look at ethical principles online and how to act (and not act) to build trust, reach customers regardless of ability, safeguard privacy and stay compliant while improving business outcomes.

  

  What is an “ethical web” ?

  When we talk about the ethical web, we’re talking about the use of the internet in an ethical way. Among other values, it involves transparency, consent and restraint. It applies the Golden Rule to the internet : Treat others (and their data and user experience) how you’d want yourself (and yours) to be treated. 

  With limited oversight, the internet has evolved in ways that often prioritise profit over user rights. While selling data or pushing cookies might seem logical in this context, they can undermine trust and reputation. And the tide is slowly but surely shifting as consumers and legislators push back.

  Consumers no longer want to buy from companies that will use their data in ways they don’t agree to. In 2022, 75% of UK and US consumers surveyed said they were uncomfortable purchasing from businesses with weak data ethics.

  Legislators worldwide have been taking part in this effort for nearly a decade, with laws like GDPR in the EU and LGPD in Brazil, as well as the various state laws in the US, like California’s CCPA and Virginia’s VCDPA. 

  Even tech giants are no longer above the law, like Meta, which was fined over a billion Euros for GDPR violations in 2023.

  

  These changes may make the internet feel less business-friendly at first glance, but ethical choices ultimately build a stronger digital ecosystem for both companies and consumers. 

  Likewise, all internet users alike can make this happen by shunning short-term profit and convenience for healthier, long-term choices and behaviour.

  As we dig into what it takes to build an ethical web, remember that no company or individual is free from mistakes in these areas nor is it an overnight fix. Progress is made one click at a time.

  Ethical SEO : Optimising your content and your ethics

  Content creation and search engine optimisation (SEO) require so much work that it’s hard to fault creators for not always abiding by search engine guidelines and seeking shortcuts – especially when there’s a sea of LinkedIn posts about how copying/pasting ChatGPT responses helped someone rank #1 for several keywords in one week.

  However, users turn to Google and other search engines for something of substance that will guide or entertain them.

  Content meets customer needs and is more likely to lead to sales when it’s well-written, original and optimised just enough to make it easier to find on the first page of results. This doesn’t happen when content teams dilute quality and waste a reader or viewer’s time on posts that will only yield a higher bounce rate.

  Some SEO pros do find success by building backlinks through private blog networks or crafting a million unedited posts with generative AI, but it’s short-lived. Google and other search engines always catch up, and their content plummets or gets penalised and delisted with every new update.

  Content teams can still rank at the top while sticking to ethical SEO principles. Here’s a sample list of dos and don’ts to get started :

  • Do put content quality above all else. Make content that serves the audience, not just a brand or partner ad network.
  • Do apply the E-E-A-T framework. Search engines value content written by authors who bring expertise, experience, authority and trust (E-E-A-T).
  • Don’t keyword stuff. This might have worked in the early days of SEO, but it hurts readability and now harms article performance.
  • Do use alt text as intended. While it can still help SEO, alt text should prioritise accessibility for users with screen readers.

  • Don’t steal content. Whether it’s violating copyright, copying/pasting other people’s content or simply paraphrasing without citation, companies should never steal content.
  • Don’t steal ideas. It’s okay to join in on a current conversation or trends in an industry, but content creators should be sure they have something valuable to add.
  • Do use AI tools as partners, not creators. AI can be an incredible aid in crafting content, but it should never be posted without a human’s touch.

  When we follow ethical SEO guidelines and get more clients with our content, how do we best handle their data ?

  Ethical data governance : Important principles and how to avoid data misuse

  Data governance comprises every aspect of how a company manages data, including storage, security, privacy, lifecycle management, setting policies and maintaining compliance with laws like GDPR and HIPAA.

  Applying data ethics to governance is doing it all in a transparent, restrained way that acknowledges an individual’s right to ownership over their data. 

  For organisations, this translates to getting consent to collect data and clearly spelling out how it will be stored and used — and sticking to it.

  If a user’s birth date is needed for legal reasons, it cannot be sold to a third party or later used for something else without explicit permission. Reusing data in ways that stray from its original purpose is a form of commingling, one of the data misuses that is easy for even well-intentioned teams to do accidentally.

  Ethical data governance also includes the vigilant safeguarding of users’ data and minimising potential privacy issues.

  Failing to implement and adhere to strong security measures leads to situations like the National Public Data (NPD) breach, where cyber criminals expose the addresses, phone numbers and social security numbers of hundreds of millions of people. This was due in large part to a weakness in storing login credentials and a lack of password policy enforcement.

  No one at NPD wanted this to happen, but security likely took a backseat to other business concerns, leading to the company’s filing for bankruptcy.

  More importantly, as a data broker that aggregates information from other sources, the people affected likely had no clue this organisation had been buying and selling their data. The companies originally entrusted with their information helped provide the leaked data, showing a lack of care for privacy.

  Situations like this reinforce the need for strict data protection laws and for companies to refine their data governance approach. 

  Businesses can improve their data governance posturing with managers and other higher-ups setting the right tone at the top. If leadership takes a firm and disciplined approach by setting and adhering to strong policies, the rest of the team will follow and minimise the chances of data misuse and security incidents.

  One way to start is by using tools that make the principles of data ethics easier to follow.

  Ethical web analytics : Drawing insights while respecting privacy

  Web analytics tools are designed to gather data about users and what they do while visiting a site.
  The most popular tool worldwide is Google Analytics (GA). Its brand name and feature set carry a lot of weight, but many former users have switched to alternatives due to dissatisfaction with the changes made in GA4 and reservations about the way Google handles data.

  

  Google is another tech giant that has been slapped with massive GDPR fines for issues over its data processing practices. It has run so afoul of compliance that it was banned in France and Austria for a while. Additionally, in the US Department of Justice’s ongoing antitrust lawsuit against Google, the company’s data tracking has been targeted for both how it affects users and potential rivals.

  Unlike GA, ethical web analytics tools allow websites to get the data they need while respecting user privacy.

  Matomo offers privacy protections like :

  • Providing data anonymisation and IP anonymisation
  • Allowing users the ability to not process personally identifiable information (PII)
  • Disabling the ability to track users across websites by default to make compliance easier
  • Giving users full control over their customer data without the risk of it getting into the hands of third parties
  • Much more

  We’re also fully transparent about how we handle your data on the web and in the Matomo Cloud and in how we build Matomo as an open-source tool. Our openness allows you to be more open with your customers and how you ethically use their data.

  There are other GDPR-compliant tools on the market, but some of them, like Adobe Analytics, require more setup from users for compliance, don’t grant full control over data and don’t offer on-premise options or consent-free tracking.

  Beyond tracking, there are other ways to make a user’s experience more enjoyable and ethical.

  Ethical user experience : User-friendliness, not user-hostility

  When designing a website or application, creating a positive user experience (UX) always comes first. 

  The UI should be simple to navigate, data and privacy policy information should be easy to find and customers should feel welcomed. They must never be tricked into consenting or installing. 

  When businesses resort to user-hostile tactics, the UX becomes a battle between the user and them. What may seem like a clever tactic to increase sign-ups can alienate potential customers and ruin a brand’s image. 

  Here are some best practices for creating a more ethical UX :

  Avoid dark patterns

  Dark patterns are UI designs and strategies that mislead users into paying for, agreeing to or doing something they don’t actually want. These designs are unethical because they’re manipulative and remove transparency and consent from the interaction. 

  In some cases, they’re illegal and can bring lawsuits. 

  In 2023, Italy’s Data Protection Authority (DPA) fined a digital marketing company €300,000 for alleged GDPR violations. They employed dark patterns by asking customers to accept cookies again after rejecting them and placing the option to reject cookies outside the cookie banner. 

  Despite their legality and 56% of surveyed customers losing trust in platforms that employ dark patterns, a review by the Organisation for Economic Co-operation and Development (OECD) found that 76% of the websites examined contained at least one dark pattern.

  

  If a company is worried that they may be relying on dark patterns, here are some examples of what to avoid :

  • Pre-ticking boxes to have users agree to third-party cookies, sign up for a newsletter, etc.
  • Complicated cookie banners without a one-click way to reject all unnecessary cookies
  • Hiding important text with text colour, under drop-down menus or requiring hovering over something with a mouse 
  • “Confirm shaming” users with emotionally manipulative language to delay subscription cancellations or opt out of tracking 

  Improve trust centres

  Trust centres are the sections of a website that outline how a company approaches topics like data governance, user privacy and security. 

  They should be easy to find and understand. If a user has a question about a company’s data policy, it should be one click away with language that doesn’t require a law degree to comprehend.

  Additionally, trust centres must cover all relevant details, including where data is stored and who does the subprocessing. This is an area where even some of the best-intentioned companies may miss the mark, but it’s also an easy fix and a great place to start creating a more ethical web.

  Embrace inclusivity

  People want to feel welcomed to the party — and deserve to be — regardless of their race, ethnicity, religion, gender identity, orientation or ability. 

  Inclusivity is great for customers and companies alike. 

  A study by the Unstereotype Alliance found that progressive marketing drove up short- and long-term sales, customer loyalty and purchase consideration. A Kantar study reported that 75% of surveyed customers around the world consider a company’s diversity and inclusivity when making a purchasing decision.

  An easy place to start embracing inclusivity is with a website’s blog images. The people in photos and cartoons should reflect a variety of different backgrounds.

  Another area to improve inclusivity is by making your site or app more accessible.

  Accessibility ethics : An internet for everyone

  Accessibility is designing your product in a way that everyone can enjoy or take part in, regardless of ability. Digital accessibility is applying this design to the web and applications by making accommodations like adding descriptive alt text to images for users with visual impairments.

  Just because someone has a hearing, vision, speech, mobility, neurological or other impairment doesn’t mean they have any less of a right to shop online, read silly listicles or get into arguments with strangers in the comment section.

  Beyond being the right thing to do, the Fable team shows there’s a strong business case for accessibility. People with disabilities have money to spend, and the accommodations businesses make for them often benefit people without disabilities, too – as anyone who streams with subtitles can attest.

  Despite being a win-win for greater inclusivity and business, much of the web is still inaccessible. WebAIM, a leader in web accessibility, studied a million web pages and found an average of over 55 accessibility errors per page.

  We must all play a more active role in improving the experience of our users with disabilities, and we can start with accessibility auditing and testing.

  An accessibility audit is an evaluation of how usable a site is for people with disabilities. It may be done in-house by an expert on a company’s team or, for better results, a third-party consultant who can give a fully objective audit.

  Auditing might consist of running an automated tool or manually checking your site, PDFs, emails and other materials for compliance with the Web Content Accessibility Guidelines list.

  Accessibility testing is narrower than auditing. It checks how accessibility or its absence looks in action. It can be done after a site, app, email or product is released, but it ideally starts in the development process.

  Testing should be done manually and with automated tools. Manual checks put developers in the position of their users, allowing them to get a better idea of what users are dealing with firsthand. Automated tools can save time and money, but there should always be manual testing in the process.

  Auditing gives teams an idea of where to start with improving accessibility, and testing helps make sure accommodations work as intended.

  Conclusion

  At Matomo, we strive to make the ethical web a reality, starting with web analytics.

  For our users, it means full compliance with stringent policies like GDPR and providing 100% accurate data. For their customers, it’s collecting only the data required to do the job and enabling cookieless configurations to get rid of annoying banners. 

  For both parties, it’s knowing that respect for privacy is one of our foundational values, whether it’s the ability to look under Matomo’s hood and read our open-source code, the option to store data on-premise to minimise the chances of it falling into the wrong hands or one of the other ways that we protect privacy.

  If you weren’t 100% ethical before, it’s never too late to change. You can even bring your Google Analytics data with you.

  Join us in our mission to improve the web. We can’t do it alone ! 

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• 7 Benefits Segmentation Examples + How to Get Started

  26 mars 2024, par Erin

  Every copywriter knows the importance of selling a product’s benefits, not its features. So why should your marketing efforts be different ?

  Answer : they shouldn’t.

  It’s time to stop using demographic or behavioural traits to group customers and start using benefits segmentation instead.

  Benefits segmentation groups your customers based on the value they get from your product or service. In this article, we’ll cover seven real-life examples of benefits segmentation, explain why it’s so powerful and show how to get started today.

  What is benefits segmentation ?

  Benefits segmentation is a way for marketers to group their target market based on the value they get from their products or services. It is a form of customer segment marketing. Other types of market segmentation include :

  • Geographic segmentation
  • Demographic segmentation
  • Psychographic segmentation
  • Behavioural segmentation
  • Firmographic segmentation

  Customers could be the same age, from the same industry and live in the same location but want drastically different things from the same product. Some may like the design of your products, others the function, and still more the price. 

  Whatever the benefits, you can make your marketing more effective by building advertising campaigns around them.

  Why use benefits segmentation ?

  Appealing to the perceived benefits of your product is a powerful marketing strategy. Here are the advantages of you benefit segmentation can expect :

  

  More effective marketing campaigns

  Identifying different benefits segments lets you create much more targeted marketing campaigns. Rather than appeal to a broad customer base, you can create specific ads and campaigns that speak to a small part of your target audience. 

  These campaigns tend to be much more powerful. Benefits-focused messaging better resonates with your audience, making potential customers more likely to convert.

  Better customer experience 

  Customers use your products for a reason. By showing you understand their needs through benefits segmentation, you deliver a much better customer experience — in terms of messaging and how you develop new products. 

  In today’s world, experience matters. 80% of customers say a company’s experience is as important as its products and services.

  Stronger customer loyalty

  When products or services are highly targeted at potential customers, they are more likely to return. More than one-third (36%) of customers would return to a brand if they had a positive experience, even if cheaper or more convenient alternatives exist.

  Using benefits segmentation will also help you attract the right kind of people in the first place — people who will become long-term customers because your benefits align with their needs. 

  Improved products and services

  Benefits segmentation makes it easier to tailor products or services to your audiences’ wants and needs. 

  Rather than creating a product meant to appeal to everyone but doesn’t fulfil a real need, your team can create different ranges of the same product that target different benefits segments. 

  Higher conversion rates

  Personalising your pitch to individual customers is powerful. It drives performance and creates better outcomes for your target customer. Companies that grow faster drive 40 per cent more revenue from personalisation than their slower-growing counterparts.

  When sales reps understand your product’s benefits, talking to customers about them and demonstrating how the product solves particular pain points is much easier. 

  In short, benefits segmentation can lead to higher conversion rates and a better return on investment. 

  7 examples of benefits segmentation

  Let’s take a look at seven examples of real-life benefits segmentation to improve your understanding :

  Nectar

  Mattress manufacturer Nectar does a great job segmenting their product range by customer benefits. That’s a good thing, given how many different things people want from their mattress. 

  It’s not just a case of targeting back sleepers vs. side sleepers ; they focus on more specific benefits like support and cooling. 

  

  Take a look at the screenshot above. Nectar mentions the benefits of each mattress in multiple places, making it easy for customers to find the perfect mattress. If you care about value, for example, you might choose “The Nectar.” If pressure relief and cooling are important to you, you might pick the “Nectar Premier.”

  24 Hour Fitness

  A gym is a gym is a gym, right ? Not when people use it to achieve different goals, it’s not. And that’s what 24 Hour Fitness exploits when they sell memberships to their audience. 

  As you can see from its sales page, 24 Hour Fitness targets the benefits that different customers get from their products :

  

  Customers who just care about getting access to weights and treadmills for as cheap as possible can buy the Silver Membership. 

  But getting fit isn’t the only reason people go to the gym. That’s why 24 Hour Fitness targets its Gold Membership to those who want the “camaraderie” of studio classes led by “expert instructors.”

  Finally, some people value being able to access any club, anywhere in the country. Consumers value flexibility greatly, so 24 Hour Fitness limits this perk to its top-tier membership. 

  Notion

  Notion is an all-in-one productivity and note-taking app that aims to be the only productivity tool people and teams need. Trying to be everything to all people rarely works, however, which is why Notion cleverly tweaks its offering to appeal to the desires of different customer segments :

  

  For price-conscious individuals, it provides a pared solution that doesn’t bloat the user experience with features or benefits these consumers don’t care about.

  The Plus tier is the standard offering for teams who need a way to collaborate online. Still, there are two additional tiers for businesses that target specific benefits only certain teams need. 

  For teams that benefit from a longer history or additional functionality like a bulk export, Notion offers the Business tier at almost double the price of the standard Plus tier. Finally, the Enterprise tier for businesses requires much more advanced security features. 

  Apple

  Apple is another example of a brand that designs and markets products to customers based on specific benefits.

  

  Why doesn’t Apple just make one really good laptop ? Because customers want different things from them. Some want the lightest or smallest laptop possible. Others need ones with higher processing power or larger screens.

  One product can’t possibly deliver all those benefits. So, by understanding the precise reasons people need a laptop, Apple can create and market products around the benefits that are most likely to be sold. 

  Tesla

  In the same way Apple understands that consumers need different things from their laptops, Tesla understands that consumers derive different benefits from their cars. 

  It’s why the company sells four cars (and now a truck) that cover various sizes, top speeds, price points and more. 

  

  Tesla even asks customers about the benefits they want from their car when helping them to choose a vehicle. By asking customers to pick how they will use their new vehicle, Tesla can ensure the car’s benefits match up to the consumers’ goals. 

  Dynamite Brands

  Dynamite Brands is a multi-brand, community-based business that targets remote entrepreneurs around the globe. But even this heavily niched-down business still needs to create benefit segments to serve its audience better. 

  It’s why the company has built several different brands instead of trying to serve every customer under a single banner :

  

  If you just want to meet other like-minded entrepreneurs, you can join the Dynamite Circle, for example. But DC Black might be a better choice if you care more about networking and growing your business.

  It’s the same with the two recruiting brands. Dynamite Jobs targets companies that just want access to a large talent pool. Remote First Recruiting targets businesses that benefit from a more hands-on approach to hiring where a partner does the bulk of the work.

  Garmin

  Do you want your watch to tell the time or do you want it to do more ? If you fall into the latter category, Garmin has designed dozens of watches that target various benefits.

  

  Do you want a watch that tracks your fitness without looking ugly ? Buy the Venu. 

  Want a watch designed for runners ? Buy the Forerunner. 

  Do you need a watch that can keep pace with your outdoor lifestyle ? Buy the Instinct. 

  Just like Apple, Garmin can’t possibly design a single watch that delivers all these benefits. Instead, each watch is carefully built for the target customer’s needs. Yes, it makes the target market smaller, but it makes the product more appealing to those who care about those benefits.

  How to get started with benefits segmentation

  According to Gartner, 63% of digital marketing leaders struggle with personalisation. Don’t be one of them. Here’s how you can improve your personalisation efforts using benefits segmentation. 

  Research and define benefits

  The first step to getting started with benefit segmentation is understanding all the benefits customers get from your products. 

  You probably already know some of the benefits, but don’t underestimate the importance of customer research. Hold focus groups, survey customers and read customer reviews to discover what customers love about your products. 

  Create benefit-focused customer personas

  Now you understand the benefits, it’s time to create customer personas that reflect them. Group consumers who like similar benefits and see if they have any other similarities. 

  Price-conscious consumers may be younger. Maybe people who care about performance have a certain type of job. The more you can do to flesh out what the average benefits-focused consumer looks like, the easier it will be to create campaigns. 

  Create campaigns focused on each benefit

  Now, we get to the fun part. Make the benefit-focused customer personas you created in the last step the focus of your marketing campaigns going forward. 

  Don’t try to appeal to everyone. Just make your campaigns appeal to these people.

  Go deeper with segmentation analytics

  The quality of your benefit segmentation strategy hinges on the quality of your data. That’s why using a an accurate web analytics solution like Matomo to track how each segment behaves online using segmentation analytics is important.

  

  This data can make your marketing campaigns more targeted and effective.

  Benefits segmentation in practice

  Let’s say you have an e-commerce website selling a wide range of household items, and you want to create a benefit segment for “Tech Enthusiasts” who are interested in the latest gadgets and cutting-edge technology. You want to track and analyse their behaviour separately to tailor marketing campaigns or website content specifically for this group.

  1. Identify characteristics : Determine key characteristics or behaviours that define the “Tech Enthusiasts” segment. 

  This might include frequent visits to product pages of the latest tech products, site searches that contain different tech product names, engaging with tech-specific content in emails or spending more time on technology-related blog posts.

  One quick and surefire way to identify characteristics of a segment is to look historically at specific tech product purchases in your Matomo and work your way backwards to find out what steps a “Tech Enthusiast” takes before making a purchase. For instance, you might look at User Flows to discover this.

  

  2. Create segments in Matomo : Using Matomo’s segmentation features, you can create a segment that includes users exhibiting these characteristics. For instance :

  • • Segment by page visits : Create a segment that includes users who visited tech product pages or spent time on tech blogs.

  

  • • Segment by event tracking : If you’ve set up event tracking for specific actions (like clicking on “New Tech” category buttons), create a segment based on these events.
    • Combine conditions : Combine various conditions (e.g., pages visited, time spent, specific actions taken) to create a comprehensive segment that accurately represents “Tech Enthusiasts.”

  3. Track and analyse : Apply this segment to your analytics data in Matomo to track and analyse the behaviour of this group separately. Monitor metrics like their conversion rates, time spent on site or specific products they engage with.
  4. Tailor marketing : Use the insights from analysing this segment to tailor marketing strategies. This could involve creating targeted campaigns or customising website content to cater specifically to these users.

  Remember, the key is to define criteria that accurately represent the segment you want to target, use Matomo’s segmentation tools to isolate this group, and effectively derive actionable insights to cater to their preferences or needs.

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  Track your segmentation efforts 

  Benefits segmentation is a fantastic way to improve your marketing. It can help you deliver a better customer experience, improve your product offering and help your sales reps close more deals. 

  Segmenting your audience with an analytics platform lets you go even deeper. But doing so in a privacy-sensitive way can be difficult. 

  That’s why over 1 million websites choose Matomo as their web analytics solution. Matomo provides exceptional segmentation capabilities while remaining 100% accurate and compliant with global privacy laws.

  Find out how Matomo’s insights can level up your marketing efforts with our 21-day free trial, no credit card required.

  Try Matomo for Free

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