"Around 20 percent of annual retail sales industry wide are earned during the holiday season." - National Retail Federation
Holiday shopping undoubtedly helps retailers in staying profitable. With 2016 holiday season just around the corner, online retailers have already started preparing their sites, supply, and fulfillment centers. According to eMarketer’s holiday sales preview forecast, Holiday retail ecommerce sales is expected to jump to $94.71 billion – hitting the 10% mark for the first time!
While major online players like Amazon have already leveraged the power of big data and analytics to best serve the needs of their online consumers, it is high time that other small and medium size eCommerce sites also leverage the power of analytics to understand the consumer behavior and enhance the online buying experience for them.
Having a great eCommerce site with a solid technology backbone is just the beginning. Merchants need to constantly analyze the consumer behavior, conversion rates, customer churn and revenues and make tweaks to enhance the overall customer experience. Magento is one of the popular open source online shopping systems used by more than 200,000 online retailers worldwide. Keeping the needs of the online merchants in mind, recently, Magento acquired RJMetrics, which is an advanced cloud-based analytics solution. Apart from the analytics extensions which have been already built for Magento, Magento core platform now includes a native solution to enable merchants analyze the data and derive valuable insights into customers, merchandising, channels and more.
The new solution, marketed as Magento Analytics, has already gained a lot of attention of the Magento users. Let us look at it in more detail-Key Features of Magento Analytics:
Retailers acquire close to 59% more customers per day during the holiday season. Considering the criticality of the holiday season, it is important that the merchants have access to the right data to be able to optimize the ad spend, plan inventory and plan a solid a follow-up strategy. With a wide range of reports, Magento analytics allows merchants to take smarter decisions before, during and after the holiday season. Merchants can compare their holiday performance with industry benchmark, reactivate the existing customers with targeted campaigns, find the right channels for customer acquisition and much more.
Magento Analytics helps the merchants discover crucial insights such as customer acquisition cost and lifetime value. Based on the data, they can identify the most optimal channels and campaigns to get the maximum returns on their investments and also get repeat customers. With the right data and insights, merchants can build highly-targeted lists based on various parameters such as buying behavior, purchase dates or customer value and send targeted email campaigns to increase the conversion rates.
Revenue and Profitability Analytics:
Revenue tracking is one of the most crucial aspects for the merchants. Instead of depending on multiple reports coming from multiple sources, with Magento Analytics, merchants can consistently and accurately measure the revenues in any scenario through one single source of truth. It also allows them to do the analysis of net profit based on the information about revenues, refunds, costs, discounts, shipping, tax and processing fees. The real-time analysis of performance can help them take quick and smart decisions in real time.
Consumer Behavior Analysis:
Rather than going simply by gut feeling, Magento Analytics empowers the merchants with solid data allowing them to do a deeper analysis of customer behavior, customer feedback, characteristics, loyalty, etc. which can help them device mechanisms to reduce the customer churn and optimize the conversion rate.
Merchandising and Shopping Experience Optimization :
For the merchants, it is important to get valuable insights into the page, placement, promotion, products and channel performance. Through such insights, they can optimize the online shopping experience and performance and help in the growth of sales and margins. Magento Analytics provides all such details quickly and easily.
Magento Analytics Integrations:
Magento Analytics has made integrations with third-party systems and tools very easy. Merchants storing their transaction and event data in any type of database like MySQL, MongoDB, SQL Server, etc. can easily connect it to Magento Analytics. It allows easy integration with a variety of CRM, shopping carts, Ad Platforms, Customer Support tools and Web Analytics solutions. It also supports Amazon RedShift data warehouse technology.
By combining data from multiple such sources, Magento Analytics creates a single source of the truth around customers and helps merchants in gaining more loyal customers.
Using Magento Analytics does not require any special engineering or data science skills. Merchandisers, marketers, executives and product managers can very effectively use the platform without the need of any technical skills. Having said that, with features like SQL report builder, more advanced users can easily generate code-level reports.
With extremely user interface built for business users, pre-built data integrations, easy to use privacy controls, scheduled reports with a facility to build your own reports and automatic report notifications, Magento Analytics could soon become the analytical solution of choice for the online retailers.