If you know anything about e-commerce, by now you have realized the importance of tracking your analytics. This practice has in fact become the gold standard for Magento shops big and small, and with a good reason. When leveraged mindfully, analytics give you all the information you need to make informed business decisions for your online business.
However, in an effort to extrapolate all relevant information, it is not unusual for e-commerce owners to fall into the rabbit hole of mindless data capturing.
To avoid cluttering your dashboard with irrelevant information, it is important to maintain the focus strictly on the analytics that really matter. In this practical guide, we will help you navigate those so you don’t have to.
What Magento Analytics Should You Always Track?
So what are the most relevant analytics and how can they help your Magento business thrive?
In simple terms, we can say that you only want to extract useful information that can give you insight into your progress as well as shed a light onto your areas of improvement.
By correctly leveraging Magento business intelligence, you will be able to pinpoint your best-selling products and the average spending of your typical customer. This information will, in turn, help you make important decisions regarding inventory, marketing campaigns, and overall business strategies.
Among the most important Magento analytics we find the following:
It should go without saying, but one of the most crucial Magento reports is revenue.
This can be divided into:
- Total revenue: the total amount of money derived from a single transaction. Depending o your Magento shop settings, values such as tax and shipping fees may or may not be included.
- Product revenue: the amount of money derived from an individual product sale.
The secret to a thriving business is knowing your audience inside out so as to keep providing them with more of what they love.
With the right tools, knowing everything you need about your customers’ preference is very easy. Simply link your favorite analytics extension to your Magento shop and add a tracking code to each one of your products. This way, you will be able to check their progress and make inventory and strategize marketing decisions accordingly.
Abandoned Cart Rates
Magento shops allow buyers to place their items of choice in the cart and come back to complete the purchase later. In spite of regular notifications, though, sometimes the product is simply abandoned.
Tracking your abandoned cart rate can prompt you to address a problem with your product or marketing strategy before it escalates. It may also indicate the need to make price adjustments or stop selling a particular item altogether.
The formula to calculate the abandoned sales is: number of completed purchases divided by total number of shopping cart generated. The result is then multiplied by 100.
Total Amount of Items Sold
Along with the total revenue, calculating the total amount of items sold is essential to your Magento shop’s success. Knowing how many items you have sold will not only help you track your profits, it will also keep you in the loop of each of your product’s performance at any given time.
Latest Additions to your Webshop
As you already know, periodically launching new products is one of the most effective strategies to keep your audience interested and engaged. Keeping track of your client base preferences will help you stock up with your signature pieces as well as inspire new designs and functionalities for your merchandise.
Whenever a new product is added to your line, keeping up with its success will allow to make a few tweaks on the go. This way you don’t have to wonder about getting a bad surprise later.
How Razzo Can Help
In this time and age where words such as “analytics”, “metrics”, and “data” are buzzing, it is sometimes too easy to lose sight of what really matters.
Instead of misusing crucial time and resources collecting information that klacks a practical application, it is important to direct your data & analytics efforts towards actionable knowledge that really helps your Magento shop grow.
At Razzo, we have designed a Magento Connection specifically tailored to your e-commerce needs. Through digestible graphs and easy-to-manage dashboards, our tool lets you extract high-quality, actionable data that you can leverage for all your business decisions.
If you would like help collecting only the data that matters, let us do the hard work. Do not hesitate to get in touch today and we will be delighted to help.