Becoming a data-driven organisation can be challenging. To make a value-driving impact on your business using customer, order and product data requires time, resources, and technology. Because of the investment required, some businesses feel frustrated that their current processes and digital infrastructure make it impossible to move quickly.
As a result, businesses are forced to make reactive decisions. In fact, 73% of businesses are either already investing or say they plan to invest in data before 2020.
The good news for Magento merchants is that becoming data-driven doesn’t have to be a challenge. Forward-thinking businesses are choosing Magento Business Intelligence to help them harness the power of data – here’s how…
Identify and Focus on Your Top Customers
Data from hundreds of Magento BI customers shows that the top 50% of customers are responsible for 84% of business revenue. So what does this mean for your business? While you may be investing time and money into mass retargeting or sending eDMs to the entire database, the reality is that by concentrating efforts on the very top 50% of customers, you can cut your work in half while still having an impact on 84% of your revenue drivers.
By identifying who these top revenue drivers are and engaging them with personalisation and individual outreach, you can refocus your investment to market directly to them and as a result reap greater returns.
This is an incredibly important element of marketing strategy in today’s digital landscape, and one that is enabled by the out-of-the-box dashboards available in Magento BI essentials.
Make Data-Driven Merchandising Decisions
Magento BI also enables merchants to conduct analysis into some of the causes and effects that might exist inside your operations from a merchandising perspective. For example, by plotting the price of a product against orders and revenue, the platform helps identify optimal price points with ease.
Let’s say you raise the price of a product from $80 to $90 for instance, and see no drop off in order numbers. As revenue is boosted, you decide to raise the price once more to $100, but this time orders drop significantly. Magento BI dashboards would help you easily identify and visualise this scenario, helping you make the data-driven decision to set the price of the product at the optimal point of $90.
It has also been found that 66% of promotions don’t break even. Without a well implemented BI tool, it’s near impossible to identify which aren’t working and predict which ones will. With Magento BI, retailers can focus investment on promotions that are statistically more likely to drive ROI and loyalty, while abandoning poor-performing offers that cannibalize business.
Centralise & simplify your data
The average number of SKUs for a retailer in their first year of operation is 2,000, but by the time they get to year five, the average retailer sells over 14,000 distinct SKUs. This drastic increase means that the management of product data, as well as the insights that we can draw from it, becomes increasingly difficult without a business intelligence platform.
Magento BI has a comprehensive suite of dashboards and filters to help visualise complex datasets at scale, enabling merchandisers to quickly make informed business decisions with ease.
What drives value for your business?
Is it your promotions? Is it your loyalty program? How about your email marketing? Any of these major components of your marketing strategy could be driving huge value for your business, but they could just as easily be the components that are killing your profits. Without a platform to help you draw insights from your data, it’s becoming increasingly difficult to understand where you should be focussing your efforts.
Magento Business Insights is enabling businesses with new analytical capabilities that offer a real-time, as well as historical view of the customer’s buying behavior. To gain a deep understanding of how to best merchandise to your customers, speak to eWave today.
Nick Hull is an expert in commerce strategy and technology for global brands and retailers. He is the Manager of Strategic Partnerships & Accounts at eWave. See his work here or connect with him on LinkedIn.