Magento BI (Business Intelligence) is one of the greatest tools while using Magento for your e-commerce business. Earlier it was referred to as Magento Analytics, Magento BI provides a holistic view of the customer journey across a variegated cosmos of valuable data sources. So you don’t need to see the data from a single source and the software enables the consolidation of numerous data sources like MySQL, Salesforce, Facebook, etc.
In simple words, Magento BI makes the analyzing of data report very simple and fast. The online store owners can spend more time applying new insights and less time in gathering and combining data from varying sources. Magento BI provides 5 customizable dashboards by which you can measure the important KPIs (Key Performance Indicators) of your store along with 100+ customizable reports for deeper insights into your store performance. These reports include:
- Customer Lifetime Value
- Segmented data for personalization
- Top Performing Channels
- Cohort Analysis
You can customize these reports as per your needs to get more insights into your store performance.
Is there any additional fee to use Magento Business Intelligence?
If you are an Adobe Commerce user, you can use Magento BI free of charge. But if you are the free Magento Open-source edition, you have to pay an additional fee to use it. The fee will be based on your Gross Merchandise Volume (GMV) and starts at $100 per month. Ostensibly, it may seem that the charges are high but trust us. The report will let you uncover very great insights which will be worth the investment.
Personalized Marketing & Segmentation Through Magento Business Intelligence:
The cohort analysis function of Magento Business Intelligence allows retailers to break their customers into different groups on the basis of when they made their first purchase and then place this data onto a chart. Instead of comparing them according to a month of the calendar, they can compare the relative months of the customer’s life span. In short, you can easily measure the customer lifetime value (CLV) and track the customer behaviour to identify who are the most valuable customers for you.
Let’s understand through an example: How is the consumer lifecycle of customers you acquired in April 2020 in comparison to the lifecycle of those customers you acquired in April 2016? Are the new customers more valuable than the old customers?
After getting the answer, you can extrapolate which channels are bringing you the most valuable traffic on investment and what channels are worth nothing.
You can also make data-driven decisions such as creating shopping experience enhancements and audience-targeted campaigns. You will be able to spend your marketing money on insights and not on intuition.
The major capabilities of the MBI in this regard are:
- Advanced customer insights
- Marketing campaign ROI
- Improved segmentation and personalization
- Better shopping experience
- Cross-border analytics
What you can do with Magento BI?
Apart from getting insights and gathering data in a single space, Magento BI lets you have better control of your Magento store. Let’s know in detail…
a. Control over who can edit the store data:
There is a scale of permissions offered by Magento BI for better security and to maintain control over analysis & insights. If someone is allocated as Admin, he/she will be able to edit the store’s data, metrics, dashboards, and reports.
The lower-level employees get the standard access by which they can get insights and view dashboards and send out reports. For maintaining consistency, you should allow only selected persons to make edits.
b. Track your goals:
The dashboards are highly user-friendly and thus allows you to easily track the business goals and year-wise performance of your store.
Magento BI unites all your analytics programs and calculates ROI in one place. The dashboard function is used to get a birds-eye view of your online spending activities and their results by calculating ROI and CLV.
c. Create and Send Reports:
Magento BI comes with RFM (Recency, Frequency, Monetary) analysis for segmentation. As we mentioned above, this will allow you to determine the most valued customer groups and future high-value customers on the basis of their recent order value, transactions frequency and average order monetary value.
Another popular feature is Automated e-mail summaries. Not everyone will be informed if a lot of things are going on; but the automated BI feature can send regular, customized, mobile-friendly reports, and connects your company.
d. Build beautiful web pages:
BI tools also allow you to create CMS without coding. There are predefined templates present and styling can be set for posting and editing your pages.
How to know whether you should Magento BI or not?
There are 3 majors signs to identify whether you should use Magento BI or not:
a. You can’t make any sense of the gathered data:
Even without Magento Business Intelligence, you will get various data about the store performance. But it wouldn’t be easy to track growth and performance over time and make sense of that data. Magento BI will be using the data that your store is already gathering and make it easy for you to understand it.
b. You are struggling to grow:
It has been a time since your sales curve is flat and you are having trouble growing, using a tool like Magento BI can be powerful. You can recognize areas in which you may need to improve.
c. You want more granular tracking and reports about key metrics:
Customizability is one of the USPs of the Magento BI. You can dive deeply into the data, use custom metrics and filters to track important KPIs such as Average Order Value (AOV), Average Revenue Per User (ARPU), and many others.
In this article, we have gone through the importance of Magento Business Intelligence and how it can be helpful for your store growth and managing data. At Ceymox Technologies, we are having expertise in developing Magento stores from scratch. Our certified Magento developers can upgrade Magento versions, improve security, provide maintenance, implement new features and functionalities, and much more. Let us know your requirements.