Magento Taps Into Analytics with Acquisition
Want to succeed in retail? Look to analytics to find answers to user-experience questions, retention problems and conversion issues.
Magento merchants will soon be able to analyze their retail businesses better thanks to the company's acquisition of RJMetrics, which was picked up for an undisclosed amount. Types of information that can be gleaned from RJMetrics include improved segmentation and personalization abilities, better insights into merchandising decisions (like promotion, placement), customer lifetime value info, churn analytics and more. For the latter, as more retailers look to take advantage of a "subscription economy" they can identify when a shopper is ready to cancel their membership - leading retailers to miss out on that valuable recurring revenue. Not only are subscription-born companies like Stitch Fix, Fabletics and others leveraging monthly programs, but also retailers like Amazon and Target for items shoppers purchase on a regular basis.
The first acquisition for Magento since its eBay split, the newly "Magento Analytics" will certainly help retailers of all size and types tap into their analytics more efficiently.
“Big data and analytics are now table stakes for merchants who want to find new customers, increase order value, and enhance loyalty,” said Mark Lavelle, CEO of Magento Commerce. “The combination of RJMetrics and our global ecosystem of Solution Partners will provide our joint customers, such as Signature Hardware, Draper James and Bucketfeet, and the diverse portfolio of Magento merchants with cutting-edge analytics that keep them ahead of the competition.”