When you run a business, you need to make innumerable decisions, and it can be difficult to know whether you are making the right choices. That’s one reason that data analytics has taken off in recent years, with even small businesses utilizing the kinds of computer-driven data analysis that had previously been reserved for major corporations. If you are using Magento to run your eCommerce platform, you already have access to some terrific tools that will allow you to use data analytics to drive better business decisions.
In this article, we’ll take a look at the tools you have within Magento or can use with Magento and how you can use them to feel more confident in the decisions you make about your business by identifying trends and optimizing the strategies you use to appeal to your customers.
Magneto’s Native Analytics
Magneto comes with its own built-in analytics tools that can give you a starting point for monitoring your site’s performance. These break down into a few categories:
(a) Sales Reports. Magneto allows you to track your sales and to evaluate the effectiveness of various promotions, products, and pricing strategies through reports monitoring sales by product, sales by customer, average order value, and more.
(b) Product Performance. Magneto allows you to track a number of metrics that evaluate the performance of specific products. Whether that is product views, the number of times a product is added to a cart, or conversions, you can use this data to evaluate which products perform best and which you can safely discontinue without affecting the bottom line.
(c) Customer Reports. Magneto helps you to analyze consumer behavior within your store so you can group your customers and target marketing campaigns to each demographic group to maximize retention.
(d) Cart abandonment. Magneto will also help you identify trends in cart abandonment so you can evaluate the reasons why customers are not completing orders to better address consumer needs.
Integrate Magento with Google Analytics
The Google Analytics suite of products offers additional ways to drill down deeper into the behavior of your customers. Google Analytics helps to track and report on your eCommerce store’s users, producing information that can give you valuable insights into their preferences and choices.
(a) It tracks user traffic. You can learn where your visitors are coming from, what pages they visit, and how long they stay on each page.
(b) It offers a conversion funnel analysis. This lets you track when and where users abandon the purchasing process, which will help identify unforeseen or invisible obstacles that stop your customers from completing their purchases.
(c) It offers enhanced eCommerce tracking. This helps you to monitor performance and sales at a granular level to see what’s working. If you need help integrating these tools in the United Kingdom, a Magento developer sourced from a professional Magento agency in the UK can help get you up and running fast.
Integrate Other Advanced Tools
Google Analytics isn’t the only suite of tools that can help you to explore and understand your customers and their behavior. Magento also can easily integrate with services like Power BI, Tableau, or Kissmetrics, which offer different tools to visualize and interpret data.
For example, by using these tools you can break your customers down by demographic and easily view their purchasing patterns in order to identify key trends. Similarly, you can filter by consumer behavior to find out what types of customers engage in particular buying patterns or strategies. Beyond this, you can visualize your revenue and profit analysis using these tools in order to see key trends at a glance. Finally, these tools also give you the ability to drill down into your supply chain. You can easily monitor stock levels, product turnover, and reordering needs to optimize your eCommerce site’s inventory management.
Optimize Your Business’s Marketing Campaigns
While Magento can’t create a marketing campaign for you, the data analytics you can derive from your customers’ behavior while shopping on your Magento site can help you to target your marketing campaigns more effectively. You can, for example, refine your approach to email campaigns by analyzing open rates, click-through rates, and conversions to see what strategies attract interest and yield purchasing results.
Similarly, you can analyze the effectiveness of your paid marketing ads on service such as Google Ads or Facebook Ads by integrating your advertising platforms with Magento or Google Analytics. You can quickly determine which keywords are most profitable and how to best focus your ad buys.
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