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• What is a Cohort Report ? A Beginner’s Guide to Cohort Analysis

  3 janvier 2024, par Erin

  Handling your user data as a single mass of numbers is rarely conducive to figuring out meaningful patterns you can use to improve your marketing campaigns.

  A cohort report (or cohort analysis) can help you quickly break down that larger audience into sequential segments and contrast and compare based on various metrics. As such, it is a great tool for unlocking more granular trends and insights — for example, identifying patterns in engagement and conversions based on the date users first interacted with your site.

  In this guide, we explain the basics of the cohort report and the best way to set one up to get the most out of it.

  What is a cohort report ?

  In a cohort report, you divide a data set into groups based on certain criteria — typically a time-based cohort metric like first purchase date — and then analyse the data across those segments, looking for patterns.

  Date-based cohort analysis is the most common approach, often creating cohorts based on the day a user completed a particular action — signed up, purchased something or visited your website. Depending on the metric you choose to measure (like return visits), the cohort report might look something like this :

  

  Note that this is not a universal benchmark or anything of the sort. The above is a theoretical cohort analysis based on app users who downloaded the app, tracking and comparing the retention rates as the days go by. 

  The benchmarks will be drastically different depending on the metric you’re measuring and the basis for your cohorts. For example, if you’re measuring returning visitor rates among first-time visitors to your website, expect single-digit percentages even on the second day.

  Your industry will also greatly affect what you consider positive in a cohort report. For example, if you’re a subscription SaaS, you’d expect high continued usage rates over the first week. If you sell office supplies to companies, much less so.

  What is an example of a cohort ?

  As we just mentioned, a typical cohort analysis separates users or customers by the date they first interacted with your business — in this case, they downloaded your app. Within that larger analysis, the users who downloaded it on May 3 represent a single cohort.

  

  In this case, we’ve chosen behaviour and time — the app download day — to separate the user base into cohorts. That means every specific day denotes a specific cohort within the analysis.

  Diving deeper into an individual cohort may be a good idea for important holidays or promotional events like Black Friday.

  Of course, cohorts don’t have to be based on specific behaviour within certain periods. You can also create cohorts based on other dimensions :

  • Transactional data — revenue per user
  • Churn data — date of churn
  • Behavioural cohort — based on actions taken on your website, app or e-commerce store, like the number of sessions per user or specific product pages visited
  • Acquisition cohort — which channel referred the user or customer

  For more information on different cohort types, read our in-depth guide on cohort analysis.

  How to create a cohort report (and make sense of it)

  Matomo makes it easy to view and analyse different cohorts (without the privacy and legal implications of using Google Analytics).

  Here are a few different ways to set up a cohort report in Matomo, starting with our built-in cohorts report.

  Cohort reports

  With Matomo, cohort reports are automatically compiled based on the first visit date. The default metric is the percentage of returning visitors.

  

  Changing the settings allows you to create multiple variations of cohort analysis reports.

  Break down cohorts by different metrics

  The percentage of returning visits can be valuable if you’re trying to improve early engagement in a SaaS app onboarding process. But it’s far from your only option.

  You can also compare performance by conversion, revenue, bounce rate, actions per visit, average session duration or other metrics.

  

  Change the time and scope of your cohort analysis

  Splitting up cohorts by single days may be useless if you don’t have a high volume of users or visitors. If the average cohort size is only a few users, you won’t be able to identify reliable patterns. 

  Matomo lets you set any time period to create your cohort analysis report. Instead of the most recent days, you can create cohorts by week, month, year or custom date ranges. 

  

  Cohort sizes will depend on your customer base. Make sure each cohort is large enough to encapsulate all the customers in that cohort and not so small that you have insignificant cohorts of only a few customers. Choose a date range that gives you that without scaling it too far so you can’t identify any seasonal trends.

  Cohort analysis can be a great tool if you’ve recently changed your marketing, product offering or onboarding. Set the data range to weekly and look for any impact in conversions and revenue after the changes.

  Using the “compare to” feature, you can also do month-over-month, quarter-over-quarter or any custom date range comparisons. This approach can help you get a rough overview of your campaign’s long-term progress without doing any in-depth analysis.

  You can also use the same approach to compare different holiday seasons against each other.

  If you want to combine time cohorts with segmentation, you can run cohort reports for different subsets of visitors instead of all visitors. This can lead to actionable insights like adjusting weekend or specific seasonal promotions to improve conversion rates.

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  Easily create custom cohort reports beyond the time dimension

  If you want to split your audience into cohorts by focusing on something other than time, you will need to create a custom report and choose another dimension. In Matomo, you can choose from a wide range of cohort metrics, including referrers, e-commerce signals like viewed product or product category, form submissions and more.

  

  Then, you can create a simple table-based report with all the insights you need by choosing the metrics you want to see. For example, you could choose average visit duration, bounce rate and other usage metrics.

  

  If you want more revenue-focused insights, add metrics like conversions, add-to-cart and other e-commerce events.

  Custom reports make it easy to create cohort reports for almost any dimension. You can use any metric within demographic and behavioural analytics to create a cohort. (You can explore the complete list of our possible segmentation metrics.)

  We cover different types of custom reports (and ideas for specific marketing campaigns) in our guide on custom segmentation.

  Create your first cohort report and gain better insights into your visitors

  Cohort reports can help you identify trends and the impact of short-term marketing efforts like events and promotions.

  With Matomo cohort reports you have the power to create complex custom reports for various cohorts and segments. 

  If you’re looking for a powerful, easy-to-use web analytics solution that gives you 100% accurate data without compromising your users’ privacy, Matomo is a great fit. Get started with a 21-day free trial today. No credit card required. 

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

  26 mars 2024, par Erin

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

  Maybe.

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

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

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

  The way you do this ?

  Incrementality testing.

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

  What is incrementality ?

  So, what exactly is incrementality ?

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

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

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

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

  This is incrementality.

  

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

  What is incrementality testing ?

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

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

  The result ?

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

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

  How incrementality testing works

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

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

  • Ad impressions
  • Website visits
  • Leads
  • Sales

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

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

  1. Define a test and control group

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

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

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

  2. Execute your campaign

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

  It all depends on your goals and your primary channels.

  3. Measure outcomes

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

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

  4. Compare results

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

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

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

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

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  Why it’s important to conduct incrementality tests

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

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

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

  Determine the right tactics for success

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

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

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

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

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

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

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

  Accurate data

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

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

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

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

  Try Matomo for Free

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

  Start for free

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  Get the most out of your marketing investment

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

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

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

  Increase revenue

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

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

  Get more traffic

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

  How to test incrementality

  

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

  Here’s how you test incrementality :

  Define your goals

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

  Segment your audience

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

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

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

  Launch the test at the right time

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

  Analyse the data and take action

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

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

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

  Lastly, take action based on the test findings. 

  Incrementality test examples 

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

  Here’s an example :

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

  Here’s another practical example :

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

  How to calculate incrementality in marketing

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

  Incremental profit 

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

  It’s calculated with the following formula :

  Test group profit – control group profit = incremental profit 

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

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

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

  Incremental lift

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

  Here’s the formula :

  (Test – Control)/Control x 100 = Lift

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

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

  (2,000 – 1,000)/1,000 x 100 = 100

  This turns out to be a 100% incremental lift.

  How to track incrementality with Matomo

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

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

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

  The result is more revenue and profit for your business. 

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

  Conducting incrementality tests may take time and expertise. 

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

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

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• What Are Website KPIs (10 KPIs and Best Ways to Track Them)

  3 mai 2024, par Erin

  Trying to improve your website’s performance ?

  Have you ever heard the phrase, “What gets measured gets managed ?”

  To improve, you need to start crunching your numbers.

  The question is, what numbers are you supposed to track ?

  If you want to improve your conversions, then you need to track your website KPIs.

  In this guide, we’ll break down the top website KPIs you need to be tracking and how you can track them so you can double down on what’s working with your website (and ditch what’s not).

  Let’s begin.

  What are website KPIs ?

  Before we dive into website KPIs, let’s define “KPI.”

  A KPI is a key performance indicator.

  You can use this measurable metric to track progress toward a specific objective.

  A website KPI is a metric to track progress towards a specific website performance objective.

  

  Website KPIs help your business identify strengths and weaknesses on your website, activities you’re doing well (and those you’re struggling with).

  Web KPIs can give you and your team a target to reach with simple checkpoints to show you whether you’re on the right track toward your goals.

  By tracking website KPIs regularly, you can ensure your organisation performs consistently at a high level.

  Whether you’re looking to improve your traffic, leads or revenue, keeping a close eye on your website KPIs can help you reach your goals.

  10 Website KPIs to track

  If you want to improve your site’s performance, you need to track the right KPIs.

  While there are plenty of web analytics solutions on the market today, below we’ll cover KPIs that are automatically tracked in Matomo (and don’t require any configuration).

  Here are the top 10 website KPIs you need to track to improve site performance and grow your brand :

  1. Pageviews

  Website pageviews are one of the most important KPIs to track.

  What is it exactly ?

  It’s simply the number of times a specific web page has been viewed on your site in a specific time period.

  For example, your homepage might have had 327 pageviews last month, and only 252 this month. 

  This is a drop of 23%. 

  A drop in pageviews could mean your search engine optimisation or traffic campaigns are weakening. Alternatively, if you see pageviews rise, it could mean your marketing initiatives are performing well.

  High or low pageviews could also indicate potential issues on specific pages. For example, your visitors might have trouble finding specific pages if you have poor website structure.

  

  2. Average time on page

  Now that you understand pageviews, let’s talk about average time on page.

  This is simple : it’s the average amount of time your visitors spend on a particular web page on your site.

  This isn’t the average time they spend on your website but on a specific page.

  If you’re finding that you’re getting steady traffic to a specific web page, but the average time on the page is low, it may mean the content on the page needs to be updated or optimised.

  Tracking your average time on page is important, as the longer someone stays on a page, the better the experience.

  This isn’t a hard and fast rule, though. For specific types of content like knowledge base articles, you may want a shorter period of time on page to ensure someone gets their answer quickly.

  3. Bounce rate

  Bounce rate sounds fun, right ?

  Well, it’s not usually a good thing for your website.

  A bounce rate is how many users entered your website but “bounced” away without clicking through to another page.

  Your bounce rate is a key KPI that helps you determine the quality of your content and the user experience on individual pages.

  You could be getting plenty of traffic to your site, but if the majority are bouncing out before heading to new pages, it could mean that your content isn’t engaging enough for your visitors.

  Remember, like average time on page, your bounce rate isn’t a black-and-white KPI.

  A higher bounce rate may mean your site visitors got exactly what they needed and are pleased.

  But, if you have a high bounce rate on a product page or a landing page, that is a sign you need to optimise the page.

  4. Exit rate

  Bounce rate is the percentage of people who left the website after visiting one page.

  Exit rate, on the other hand, is the percentage of website visits that ended on a specific page.

  For example, you may find that a blog post you wrote has a 19% exit rate and received 1,000 visits that month. This means out of the 1,000 people who viewed this page, 190 exited after visiting it.

  On the other hand, you may find that a second blog post has 1,000 pageviews, but a 10% exit rate, with only 100 people leaving the site after visiting this page.

  What could this mean ?

  This means the second page did a better job keeping the person on your website longer. This could be because :

  • It had more engaging content, keeping the visitors’ interest high
  • It had better internal links to other relevant pieces of content
  • It had a better call to action, taking someone to another web page

  If you’re an e-commerce store and notice that your exit rate is higher on your product, cart or checkout pages, you may need to adjust those pages for better conversions.

  

  5. Average page load time

  Want to know another reason you may have a high exit rate or bounce rate on a page ?

  Your page load time.

  The average page load time is the average time it takes (in seconds) from the moment you click through to a page until it has fully rendered within your browser.

  In other words, it’s the time it takes after you click on a page for it to be fully functional.

  Your average load time is a crucial website KPI because it significantly impacts page performance and the user experience.

  How important is your page load time ?

  Nearly 53% of website visitors expect e-commerce pages to load in 3 seconds or less.

  You will likely lose visitors if your pages take too long to load.

  You could have the best content on a web page, but if it takes too long to load, your visitors will bounce, exit, or simply be frustrated.

  6. Conversions

  

  Conversions.

  It’s one of the most popular words in digital marketing circles.

  But what does it mean ?

  A conversion is simply the number of times someone takes a specific action on your website.

  For example, it could be wanting someone to :

  • Read a blog post
  • Click an external link
  • Download a PDF guide
  • Sign up to your email list
  • Comment on your blog post
  • Watch a new video you uploaded
  • Purchase a limited-edition product
  • Sign up for a free trial of your software

  To start tracking conversions, you need to first decide what your business goals are for your website.

  With Matomo, you can set up conversions easily through the Goals feature. Simply set up your website goals, and Matomo will automatically track the conversions towards that objective (as a goal completion).

  Simply choose what conversion you want to track, and you can analyse when conversions occur through the Matomo platform.

  7. Conversion rate

  

  Now that you know what a conversion is, it’s time to talk about conversion rate.

  This key website KPI will help you analyse your performance towards your goals.

  Conversion rate is simply the percentage of visitors who take a desired action, like completing a purchase, signing up for a newsletter, or filling out a form, out of the total number of visitors to your website or landing page.

  Understanding this percentage can help you plan your marketing strategy to improve your website and business performance.

  For instance, let’s say that 2% of your website visitors purchase a product on your digital storefront.

  Knowing this, you could tweak different levers to increase your sales.

  If your average order value is $50 and you get 100,000 visits monthly, you make about $100,000.

  Let’s say you want to increase your revenue.

  One option is to increase your traffic by implementing campaigns to increase different traffic sources, such as social media ads, search ads, organic social traffic, and SEO.

  If you can get your traffic to 120,000 visitors monthly, you can increase your revenue to $120,000 — an additional $20,000 monthly for the extra 20,000 visits.

  Or, if you wanted to increase revenue, you could ignore traffic growth and simply improve your website with conversion rate optimisation (CRO).

  CRO is the practice of making changes to your website or landing page to encourage more visitors to take the desired action.

  If you can get your conversion rate up to 2.5%, the calculation looks like this :

  100,000 visits x $50 average order value x 2.5% = $125,000/month.

  8. Average time spent on forms

  If you want more conversions, you need to analyse forms.

  Why ?

  Form analysis is crucial because it helps you pinpoint where users might be facing obstacles. 

  By identifying these pain points, you can refine the form’s layout and fields to enhance the user experience, leading to higher conversion rates.

  In particular, you should track the average time spent on your forms to understand which ones might be causing frustration or confusion. 

  The average time a visitor spends on a form is calculated by measuring the duration between their first interaction with a form field (such as when they focus on it) and their final interaction.

  Find out how Concrete CMS tripled their leads using Form Analytics.

  9. Play rate

  One often overlooked website KPI you need to be tracking is play rate.

  What is it exactly ?

  The percentage of visitors who click “play” on a video or audio media format on a specific web page.

  For example, if you have a video on your homepage, and 50 people watched it out of the 1,000 people who visited your website today, you have a play rate of 5%.

  Play rate lets you track whenever someone consumes a particular piece of audio or video content on your website, like a video, podcast, or audiobook.

  Not all web analytics solutions offer media analytics. However, Matomo lets you track your media like audio and video without the need for configuration, saving you time and upkeep.

  10. Actions per visit

  Another crucial website KPI is actions per visit.

  This is the average number of interactions a visitor has with your website during a single visit.

  For example, someone may visit your website, resulting in a variety of actions :

  • Downloading content
  • Clicking external links
  • Visiting a number of pages
  • Conducting specific site searches

  Actions per visit is a core KPI that indicates how engaging your website and content are.

  The higher the actions per visit, the more engaged your visitors typically are, which can help them stay longer and eventually convert to paying customers.

  Track your website KPIs with Matomo today

  Running a website is no easy task.

  There are dozens of factors to consider and manage :

  • Copy
  • Design
  • Performance
  • Tech integrations
  • And more

  But, to improve your website and grow your business, you must also dive into your web analytics by tracking key website KPIs.

  Managing these metrics can be challenging, but Matomo simplifies the process by consolidating all your core KPIs into one easy-to-use platform.

  As a privacy-friendly and GDPR-compliant web analytics solution, Matomo tracks 20-40% more data than other solutions. So you gain access to 100% accurate, unsampled insights, enabling confident decision-making.

  Join over 1 million websites that trust Matomo as their web analytics solution. Try it free for 21 days — no credit card required.

  Try Matomo for Free

  21 day free trial. No credit card required.

  
  

  Your email address
  

  Your website address
  

  Your Analytics subdomain will be .matomo.cloud (change)

  Choose your analytics subdomain
  

  .matomo.cloud

  I accept the terms and conditions and data processing agreement (DPA)

  
  Your information will be used to create an account on our cloud service. For more information please consult our privacy policy.
  
  
  

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