If you are unsure whether your business needs to invest in a Business Intelligence (BI) tool, then this is the article for you!
We have compiled a list of the 5 ways that Magneto BI can help your business. All cases are based on real-life examples from our clients. In addition, we will cover why you need a BI tool and how the Magento BI tool can support your business growth.
1. SINGLE SOURCE OF TRUTH
Data is everywhere, and merchants know they should use it for better insight- but few truly understand how to put data to work for their business. The Magento Business Intelligence tool collects data into one warehouse. This provides an omniscient viewpoint of what’s going on in the business. Companies often find themselves stuck with data, but no real usable information; data is scattered for Google Analytics, Magento, AdWords and Facebook Ads across various dashboards. With a single source of truth, merchants can receive insight through several layers. For example, the BI tool can combine data from Facebook Ads with data from Magento which provides a full picture of a campaign that’s currently running.
The Business Intelligence tool gathers all data and allows a retailer to measure everything in a completely different way. For example, when running a campaign for a specific product, the ROI of the whole campaign will be available. Magento BI measures everything from the cost of the campaign, the product returns based on the orders, to the number of new clients via a specific source and their lifetime value. This is just one of many examples of the power of combining data in one warehouse with the help of a singular tool.
2. MORE THAN JUST SALES KPIS
With BI, it’s possible to measure KPIs not only for sales and conversions, but also for marketing, product performance, customer service, inventory levels, and much more. This empowers merchants to define different kinds of KPIs that are related to their company’s growth and generate reports based on them (e.g. decrease capital risks due to inventory, increase efficiency on customer service). Simply put, BI minimises risks and increases growth by data-driven and smarter choices.
3. TRENDS, COHORTS, AND FORECASTS
Since Magento BI combines data from several sources and presents different reports, merchants can simply build dashboards that contain the forecast on a chosen campaign or department which is then easily imported to a CSV-file (or API). This provides merchants with a high-level overview and helps them to quickly understand current numbers, trends and forecasts – all in one dashboard.
By supporting cohort analysis, BI provides the ability to measure the differences in customer lifetime value based on when or how they became customers. For example, it’s easy to see the median and average lifetime value of customers that became customers during Black Friday versus on a regular Friday.
4. UNDERSTANDING DEMAND VS PRODUCT PRICE
With BI, merchants can run different tests to understand the changing demands for a product, which in turn sheds light on how much it’s possible to increase the price of a product without decreasing the demand. For a business, that means it’s possible to instantly increase revenue on a single product. This is something that can be enabled across the board, meaning the same principle can be applied on free shipping threshold.
5. THERE’S MUCH MORE TO IT!
The list of things that Magento BI can measure is endless; from commerce churn, coupon code analysis to analysing returned orders.
Ready to take your business to the next digital level? Put Magento BI to work for you by contacting us today. Book a demo on our BI tool here!