The eCommerce domain is quite vast, and data plays a very evident role in helping you scale or operate your business the right way. Remember, every purchase, interaction, or click that gets recorded over your eCommerce store can be utilized to help you improve the operations or marketing measures.
Thus, the right utilization of this eCommerce data will need a few impactful tools, and Magento Business Intelligence (BI) tends to offer you that. With this, all online retailers will be able to access the crucial tools that your eCommerce business would need to stand out in the competitive eCommerce industry.
Magento BI is a cloud-based solution that helps you bring together all your analytics insights and data sources of your online store under one roof. Even though you usually prefer analyzing multiple KPIs to determine your Magento store performance, BI can give you a single hub for analyzing them all.
When you are running a race to win in the competitive eCommerce sector with a Magento store, data-driven decision-making ability plays a major role in driving success. It is true that this business domain does provide you with a plethora of data that can be assessed to make a winning strategy over the competition.
But, to harness the power of this data abundance and convert it into actionable insights, you will need the help of Magento Business Intelligence. This article is all about explaining to you the efficacies of this BI tool alongside the right process on how you can use it. So, before you go ahead and hire Magento developer to get you the high-performance store and integrate it with the BI tool, get a complete insight into it!
What do You Understand by Magento Business Intelligence?
Magento BI is an array of tools that is helping the eCommerce stores under the respective platform, get a comprehensive view of the business data. Following that, the BI capabilities will help you dive deeper into understanding the product performance and then help you assess the data in a streamlined manner over a centralized dashboard.
In better words, Magento BI is one of the popular analytics solutions that would help you be clear on your specific business decisions. It stores your Magento store data in a cloud-based warehouse and can be properly customized for combining multiple data sources. This warehouse has the ability to pull the data directly from the client database sets.
As the data will be readily accessible from almost any CRM database, the merchants or store owners will be able to pinpoint the specific purchase trends with more accurate and faster information. There’s a Magento Business Intelligence Pro version as well, which enables you to access data even from third-party sources such as Facebook Ads, Salesforce, or QuickBooks.
This platform comes with immense intelligence-gathering abilities, which frees up enough of your time to promote data-driven decisions. For you to understand this better, Magento Business Intelligence has three major components, which include:
Unified Space for Data Storage
Magento BI is connected directly to the store database and might also be connected to diverse other systems that you use for running your business. The concept of full-stack technology being used for data replication makes Magento Business Intelligence serve as a cloud storage for storing all the eCommerce data under one roof.
Space for Detailed Analysis
It is the space under Magento BI where the reports will be created for you to better analyze them and come to an impactful business decision. This tool will help you customize or standardize your company metrics by creating certain tables and adding calculated columns.
Space for Data Visualization
Here, the prepared reports are transformed into concise charts and appealing graphs. With such a system by Magento BI, it will be easier for you to manage or organize the accounts being created, grant multi-layered access, or send the analysis report via email.
Why is Magento Business Intelligence Important for Your Online Store?
When you are able to comprehend and examine immense metrics and data with Magento Business Intelligence, it will enable you to enhance the overall store performance. This would offer you actionable insights for benefitting the site and scaling the efficiency of your operational procedures.
For instance, you will be able to keep track of the average order value by using Magento BI and specify if it is rising or falling over time. As of 2020, 54% of the respondent companies in a survey said that BI is considered important for achieving business objectives across all domains. And Magento Business Intelligence serves the same effectiveness in the eCommerce sector.
The importance of this BI solution for Magento is quite essential for store owners to be able to analyze large quantities of data all at once. You can either get the bigger picture overview or analyze the data based on individual sources. In this way, you can improve your marketing or sales decisions to bring in more productivity.
Magento BI demands a very minimal effort from the store owners to normalize or personalize their data. Being a completely automated service platform, this BI tool will de-normalize the data associated with the optimization needs for you to run a better in-depth analysis. The interface of Magento Business Intelligence further normalizes the data yet again to keep it clean and properly optimized for the software. This is what helps your Magento store experience a productive output.
What are the Different Processes Involved within Magento Business Intelligence?
Magento Business Intelligence can be executed with the use of specific processes, which include:
1. Gathering Data
Raw data is primarily collected from various resources, such as business system databases, social media, spreadsheets, and other such platforms. Following that, data validation and cleansing are considered essential processes to promote the utmost accuracy of the data.
2. Data Integration
Every piece of data that Magento Business Intelligence helped you collect from diverse resources will be merged & converted into specific usable formats. Under this process, it is expected to resolve all inconsistencies and conflicts within the data.
3. Warehousing of Data
Magento BI serves the purpose of helping you store your data in a centralized warehouse or repository for conducting in-depth analysis. This is the most important consideration right after you are done with Magento development aspects for your store. In this process, the data protection and security aspects are also taken into consideration.
4. Data Mining
In-depth analysis is implemented by Magento Business Intelligence, which helps recognize trends, relationships, and patterns within the collected and stored data. With this, you can expect to reveal any possible hidden opportunities or insights for the business.
5. Analysis and Visualization of Data
This is the process where Magento Business Intelligence helps create a visual representation of the collected data over the dashboard. It is to ensure that the users will be able to monitor or analyze data more effectively. This empowers the users to be able to make more informed decisions in real time.
What are the Ways in Which You Can Use Magento Business Intelligence Platform?
So far, you must have understood that Magento Business Intelligence is your one-stop hub to store all the eCommerce store data in one space. With this, you get better control over your Magento store and the data it collects. Thus, tracking your goals, preparing reports, and targeting specific customers won’t be a big hassle anymore.
But beyond that, there are certain ways you can use Magento BI for your operational benefits, which include:
1. Gain Control of Who Can Edit/Access the Data
The Magento BI software offers you the feasibility to set several user access or permission levels. This is to ensure security and maintain optimal control over the analysis systems. If you are the admin of your Magento BI platform, it is under your control to decide who can edit the metrics, reports, dashboards, or data of your company.
2. Proper Goal Tracking
Magento Business Intelligence platform comes with an intuitive dashboard for you to track whether you are approaching correctly towards your business goals by assessing the performance and other specific data. When you unify all your specific analytics programs under one roof, Magento BI enables you to specify your predicted ROI. This dashboard feature can also give you an overview of your online spending activities.
3. Preparing & Sending Reports
With the use of Magento BI, you can expect to create holistic reports on how your store performed within a specific timeline. Create reports on sales, revenue, marketing ROI, and other such factors, and set automated emailers to keep your entire team informed at once. Magento Business Intelligence sends out customized and mobile-optimized reports to make your company operate collaboratively.
4. Recency, Monetary and Frequency (RFM) Analysis
This store allows Recency, Monetary, and Frequency (RFM) based analysis for better segmentation of the customers. With this, you will be able to predict the individuals who can possibly be your high-value customers. And that’s done by assessing current transactions and the associated frequency.
There is an endless array of benefits for introducing Magento Business Intelligence to your eCommerce business. This would not just help you with better performance and decision-making but will also scale your customer engagement and help you save on certain operational expenses.
The eCommerce landscape of today is quite dynamic, for which collecting just enough data isn’t sufficient to help you win over the competition. Therefore, to utilize the best potential of your store data, you must learn how to dissect it and derive specific insights that would help you evolve your business strategies, product offerings, marketing measures, and other such aspects.
So, it is advisable for you to seek the integration of Magento Business Intelligence alongside your necessary store functions in order to make more data-centric decisions to help your business grow.