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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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• 9 Form Optimisation Tips to Convert More Visitors

  15 février 2024, par Erin

  Forms might seem boring — that is, until you realise how powerful they are.

  No forms mean no leads.

  No leads mean no sales.

  No sales means you’ll run out of business.

  So, what do you do ?

  Optimise forms to land more leads.

  They’re a critical part of the sales funnel.

  Forms have many different purposes and can be used to :

  • Contact a company
  • Sign up for a newsletter
  • Request a demo
  • Start a free trial
  • And more

  If you want to get more leads (and ultimately more sales), then you need to optimise your forms.

  This guide will show you exactly how to do that (so you can start getting more conversions today). 

  What is form optimisation ?

  Before we dive into form optimisation, let’s back up a bit.

  Form conversion is our primary focus.

  Your form conversion rate is the percentage of visitors who submit a form divided by the total number of visitors who started the form times one hundred.

  For example, if 5,000 people started filling out your form this month and 350 submitted the form, the conversion rate would be : 

  350 / 5,000 x 100 = 7%

  So, what’s form optimisation ?

  

  It’s simply improving your forms to increase conversion rates.

  For most people, form conversion is all about increasing leads.

  Before you begin optimising your forms, it’s important you understand what’s good (and what’s not good) when it comes to form conversions.

  The average form conversion rate across all industries is 2.9%.

  This means you should expect about 3 out of every 100 visitors who start your form to submit it.

  If your form conversion is lower — or hovering around this number — then it’s important to start optimising now.

  With Matomo, you can track your form conversions with Matomo Form Analytics. Gain powerful insights into how your visitors interact with your forms with our intuitive dashboard.

  Why it’s important to optimise your forms

  Most people hear the word “forms” and think it’s boring.

  But forms are the doorway to leads.

  If you want to generate more sales, then you need to generate great forms.

  Here are five reasons you need to optimise your forms today :

  

  1. Improve conversions

  Form optimisation is really just conversion optimisation.

  But, instead of optimising and improving your site to directly improve sales conversions, you’re increasing lead conversions.

  Every smart website owner uses forms to draw people in further.

  The reality is that most of your website visitors will never return to your site.

  This means you need to do everything you can to grab their contact information so you can continue marketing to them day in and day out.

  Otherwise, you’ll lose them forever.

  When you know how to optimise your forms, you’ll be able to get a higher percentage of form viewers to fill it out.

  Higher conversions mean you get more leads, more customers, and ultimately more revenue.

  2. Capture more leads

  When you can increase your form conversion rate from 1% to 2%, it may seem insignificant.

  What’s a measly percentage point in conversions ?

  It’s a lot.

  When you’re dealing with traffic in the tens or hundreds of thousands each month, an increase in conversion rate by a whole percentile is massive.

  Let’s say you take your conversion rate from 2% to 3% on your form, and you have 70,000 visitors view the form each month.

  Well, if 1,400 people used to sign up to your email list each month at a 2% conversion rate, then at a 3% conversion rate, you’d get 2,100 new email signups every month.

  That’s a major difference.

  When you can improve your signup forms, you improve your lead generation (which is conversion rate optimisation). And the more leads you have, the more sales you’ll make in the long run.

  3. Get the most out of your traffic

  If your forms don’t perform well, then you’re wasting your time (and your traffic).

  By analysing your form data, you can quickly see what’s working and what’s not so you can optimise and improve the user experience (and your forms).

  For most people, this means getting more form viewers to fill out the form with their email and name.

  If 50,000 people visit your site each month, but only 1% of them fill out your form, you’re only getting 500 email signups per month.

  Rather than paying money to generate more traffic, why not just work on improving your website by implementing a better form ?

  If you can increase your form conversion rate to 2%, you will immediately go from 500 new subscribers per month to 1,000 per month.

  4. Spend less on acquisition

  If you’re able to get more form signups without having to generate more traffic, you just solved a pricey problem : acquisition costs.

  If you can now get 1,000 of your 50,000 visitors to sign up to your email list through a better form, then you doubled your signups.

  But that’s not all. You just cut your acquisition costs in half.

  If you spend $2,000 per month on acquisition but you’re able to get twice as many leads, then your acquisition costs are at 50% of what they used to be.

  This means you can pay the same amount but get twice as many leads.

  Or, you can pour even more money into acquisition since it’s now twice as effective so you can fuel growth even more.

  5. Grow revenue

  Forms generate revenue. It may not be direct (although, in some cases, it is). 

  But, forms will lead to sales.

  By placing optimised forms throughout your website at the right places, you will be able to capture a percentage of your visitors as leads, which means you’ll eventually make more sales.

  13 tips to optimise your forms for more conversions

  Now that you know what forms can do and why they’re important to grow your business, it’s time to dive into the best practices.

  Follow these 13 tips to ensure you’re getting the most out of your forms :

  

  1. Set form goals

  Your forms are hopeless without a goal.

  Before you set up a form on your website, ask yourself, “What am I trying to accomplish with this form ?”

  It could be :

  • Encouraging customers to reach out through a contact form
  • To get visitors to leave feedback on your product/service
  • Convert visitors into leads by giving you their email

  No matter what your goal is, make sure you’re clear on it ; otherwise, you won’t be as targeted and specific with your forms.

  Matomo Goals helps you set specific objectives for your marketing campaigns so you’re able to easily track conversions. Whether you’re looking to capture feedback or generate leads, you can leverage Matomo to see what’s working and what’s not in seconds.

  2. Remove or improve fields with high average time spent and high drop-off rates

  Delving into your Form Analytics provides invaluable insights into individual field performance. A crucial metric to focus on is the Average Time Spent. 

  If a field stands out with a significantly higher average time spent and experiences a high drop-off rate compared to others in the form, it’s a clear indicator that it’s causing frustration or confusion for your visitors.

  To address this, consider improving the field by converting it into a dropdown menu for easier completion or providing helpful text prompts. Alternatively, if the field isn’t essential, you might opt to remove it altogether.

  When you cut down on time spent and drop-offs, you’ll see your conversion rates go up.

  

  Here’s a standout example from Matomo’s Form Analytics feature : the “Overview of your needs” field is taking on average 1 minute and 37 seconds to complete. 

  To streamline this, we might want to consider a simple fix like converting it into a dropdown menu. This change would offer visitors a clearer and quicker way to select from options.

  

  Likewise, we observe that the “Overview of your needs” field experiences the highest drop-off rate, totaling 1,732 drop-offs. 

  With Form Analytics, it becomes clear what is needed to optimise forms and increase conversions.

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  3. Start with the CTA

  When crafting and optimising your forms, you need to start with the end in mind. That’s why you need to start with your business goals.

  What are you trying to do with this form ? If you want to capture more emails, then make sure that’s very clear with the call to action (CTA).

  Start building your form by beginning with the CTA.

  For example : “Sign Up Now.”

  Once you have the action you want your potential customers to take, place it on the form. Then, you can work towards crafting the rest of the form.

  4. Put it above the fold

  If your visitors can’t find your form, they won’t fill it out. It’s plain and simple.

  You need to make sure your form is visible above the fold. This is the part of the screen that’s visible to your visitors once they land on your site (without needing to scroll down).

  Always remember to test this out on both desktop and mobile to ensure anyone (using laptops or a mobile device) will see your form upon landing on your site or page.

  Don’t forget about your mobile users. More people view mobile forms than desktop forms. 

  5. Put a CTA in the headline

  Your form needs to be clear.

  You have 1-3 seconds to communicate with your site visitors what your form is all about.

  For example, if you’re trying to get email signups with a lead magnet, then tell them the benefit quickly and concisely with a CTA in the headline, like this one :

  “Subscribe to Save 10% On Your Next Order”

  This is a great example of a headline-CTA combo that tells the visitor what to do and what they get out of it.

  Matomo’s behaviour analytics features like Session Recordings let you see where visitors are clicking and spending time. For example, if people are reading the headline, but not scrolling down to read the form, it’s probably a sign you need to test a different headline.

  6. Ensure you have the right fields

  Your form fields matter.

  What information are you trying to capture from your audience ?

  One beginner mistake people make is requiring too much information and including many fields in a form.

  You want to get as much data on your audience as possible, right ? Wrong.

  If you ask for too much information, people won’t fill it out, and it will harm the user experience. You need to make it super easy.

  If you want more emails to grow your list, then stick with someone’s email (and possibly their name as well). One line for a name. One line for an email address. Keep it simple.

  If you’re after SMS as well, don’t include it on the form. Instead, create a two-step form that pops up an SMS form after someone fills out the email form.

  Multi-step forms enable you to capture those emails easily (and still get a percentage to fill out the second form) without making it seem like too much work for your audience.

  Another path is to include optional fields (that users don’t have to fill out to click submit).

  Just keep in mind that shorter forms perform better than longer ones.

  If you make them too long, it feels like work for the user and will lead to lower completion rates.

  7. Always capture email address

  If you’re unsure of what information to capture (i.e. name, number, email, occupation, age, etc.), always stick to email.

  Email is used by over 4 billion people every single day, and it’s not going away anytime soon.

  When determining which fields to include, start with email.

  

  8. Test different buttons and copy

  You need to track your form performance if you want to get the best conversions.

  One of the best form elements to start testing is your button copy.

  In most cases, form completion buttons will have the word “submit” on them.

  But you don’t have to stick with this word.

  You can (and should) experiment with different submit button copy.

  Here are a few examples of replacement words for your action button :

  • Complete
  • Sign Up
  • Join now
  • Get started

  Remember to experiment with your action button. Try a different copy. Just keep it short.

  You can also try A/B testing your form by experimenting with different colours, copy, and more.

  

  In the example above from Matomo’s A/B testing feature, we found that changing the wording of our call to action made a big difference. The new “Apply Now” button performed much better, with a 3.6% conversion rate compared to just 1.7% for the original one.

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  9. Test static vs. popup

  There are various types of online forms.

  The most common is the static form that just sits in one place and is always there.

  Another popular form type is the popup.

  This is where a form will appear based on a certain trigger like :

  • A certain amount of time on page
  • A certain distance scrolling down the page
  • If someone is a new or returning visitor

  Depending on the form software you use, you may be able to add conditional logic.

  Start tracking your form conversions

  Form optimisation is all about conversion rate optimisation.

  If you want to increase your conversions and generate more revenue, then you need to test out different forms and know how to optimise them.

  With Matomo, you can easily track, manage, and A/B test your forms so you can improve your conversions. 

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

  Try Matomo for Free

  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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