Benefits Of Magento Enterprise – Should You Upgrade?

Last week we had the pleasure of having Mike Doyle, Country Manager for Australia / NZ in our offices to walk us and our clients through the numerous benefits of Magento Enterprise and why serious merchants should upgrade.

During this session Mike showed us his favourite features of Magento Enterprise that help make life easier for eCommerce businesses. He also showed us a few ways that you can utilize its features to boost your sales.

As our clients are all over Australia, the session was broadcasted live so everyone could interact, and we also recorded it so you can watch it at your leisure. You can find the full presentation below on this page. If you don’t have 45 minutes spare to watch the event, I’ve summarized the key benefits in this blog.

 

Key benefits of Upgrading to Magento Enterprise.

  1. How to save time organising your stock with Visual Merchandiser
  2. Different ways to boost sales through customer segmentation features
  3. How simply the gift card features are
  4. The power of the rule based product relations, product up sells and cross-sells
  5. How store credit works in Magento Enterprise
  6. Who can benefit from Assisted shopping and how it works
  7. And how Automated Reminder emails function & how you can use them to help recover abandoned shopping carts

 

Watch Mike’s presentation about Magento Enterprise here:

 

Magento Enterprise Benefit 1: Visual merchandiser

 

This is a great feature of Magento Enterprise and provides plenty of benefits for both small and large merchants alike.

It enables you to use a ‘drag and drop’ interface to modify product display, as well as create rules to which category products should be assigned to.

One way that Visual Merchandiser can make your life easier is by sorting and organising your product & brand categories.

For example you might currently set up a ‘brand’ category page for each brand you want to show in the navigation, then manually assign all the products that that category. With Visual Merchandiser this is automated through the ‘brand attribute’ that the product has associated.

For example under the ‘Nike’ You can set up a category rule that automatically pulls all products with the associated brand = Nike.

You can set up more advanced rules such as pages that show all ‘Nike Shoes”. To do this you’d define a category rule to associate products where Brand = Nike and Product Type = Shoes. This prevents you from needing to select every product and assign it to the right category when adding new stock potentially saving you hundreds of hours!

Below is a video that shows you more about the Visual Merchandiser features

 

 

Magento Enterprise Benefit 2: Customer Segments

 

The second key benefit to Magento Enterprise (and in my opinion one of the most powerful) is customer segmentation.

This feature allows you to create segments within your customer pool so you can provide them with a more targeted and personal browsing and marketing experience in the future.

To help you fully understand how powerful customer segmentation can be in your business, below are a few examples of how you can utilize it. For this example I’ve used a womens fashion/activewear site so that you can see how to utilize these features in a real world application. If you’d like examples of how to use them in your business please get in touch.

 

High Rollers – You can set up a ‘high rollers’ segment which is specifically for customers who have spent $500 or more with you online. Not only will this group be your most valuable clients, but they have proven to be most responsive. You can invite them to private sales events as we covered above, and give the them the first chance to get your newest and latest stock.

‘Basics’ buyers– This segment will be for people who have a tendency to purchase basics. They will be those women who avoid the new seasons colour & styles for tried and tested designs. By segmenting them out you can increase their order frequency by promoting styles that they like. Plus if you improve on the design of any of your basics, they’ll be very keen to buy them.

Sports Bra’s Buyers – If someone has purchased a sports bra from you, then chances are their next purchase will be for pants, a top, a jacket or shorts. By segmenting out what they have already purchased, your able to promote items that they haven’t yet purchased, thus increasing your conversion rates

Specific Styles – If someone has purchased a pair of your new season pants, then you have the ability to either promote a matching bra, or another item that looks stunning with their existing items. This allows you to narrow down and target your promotions like never before.

Bargain Lovers – Some people simply love a bargain, yet won’t spend anything on ‘full priced’ products even if they are the same price. Segment your ‘bargain lovers’ out and promote them more ‘bargains’ as this will spike their need for a saving.

Location – Do you launch new seasons stock in store with a ‘VIP’ event? We’ll how about segmenting your shoppers to isolate those within 20km of your stores and offering them a ticket? Alternatively, if you have excess stock in your CBD store, you could promote same day delivery to all CBD addresses.

Bottom line – With Magento Enterprise’s customer segmentation & personalisation features you’re able to tailor your marketing better than ever before, and as a result your conversions, order totals and lifetime customer value will all grow dramatically.

 

Magento Enterprise Benefit 3: Selling Gift Cards Natively.

 

The third feature that we spoke about on Magento Enterprise was the ability to sell gift cards natively. There is a growing demand for gift cards to be available from online sellers with 18% of all money spent during festive seasons going on gift cards.

Not only are they a great way to increase sales on the front end, but when the receiver comes to the store to spend the card, on average they’ll spend 20% more than the value of the card.

By marketing gift cards through Facebook to ‘friends of page likes’ you’ll be able to directly promote them to the family and friends of your customers.

The gift card feature in Magento Enterprise allows you to offer 3 kinds of gift cards:

 

  1. Virtual Gift Cards – These are emailed to the recipient directly and are great for international or last minute gift purchases.
  2. Physical – Where you’ll receive a packing slip so that you can ship the gift card to the shipping address defined at checkout
  3. Combined – This gets the gift card emailed as well as a physical card sent out in case the customer wants both options.

 

You can offer standard preset amounts such as $50, $100 & $250, or allow the customer to enter the value of the card within the predefined minimum & maximum values that you set.

Overall, gift cards are a great additional feature to help you get the most out of your Magento Enterprise store.

For more information watch the video below:

 

 

Magento Enterprise Benefit 4: Advanced Cross Sale Features

 

The fourth benefit that Mike spoke about was the rule based cross sales & promotional features of MEE.

From our experience over the last 5 years less than 20% of merchants utilise the related, up sell and cross-sell features in Magento effectively. This is mainly because in Community edition is is tedious and slow with each product needing manual selection.

As Magento Enterprise has been designed for serious sellers, they’ve designed Rule-Based relations to fix this issue. It works by creating rules that relate to the up sell and cross-sell automatically.

They work by creating 2 sets of rules:

  1. Products To Match
  2. Products To Display

 

Sticking with our womens fashion example that we started with above, lets say that we want to up sell our range of necklaces  to customers buying a dress. Now not every dress will suit every necklace. So lets just up sell them if they are looking for a purple dress:

For the first rule, Products-To-Match, it’d be set up as below:

Then you’d set the condition as Colour = Purple

Lastly, for the ‘Products To Display’ you will do the same, except select ‘necklaces’ as the category. As a result when people are browsing for purple dresses they’ll be shown the necklaces that match them the most as per our rules. This all helps contribute to achieving sales growth of 20-30% which is what many merchants attribute to their cross selling programs.

 

Magento Enterprise Benefit 5: Store Credits

 

Returns are one of the most frustrating parts of business, because not only do you need to deal with a reprocessing an item, but you also lose all profit from the sale.

The store credits feature in Magento Enterprise allows you to offer your customers credits to use on your site instead of cash back for certain types of returns.

The other way that works very well is giving store credits as prizes for competitions. This gives your customers the value that they are after, while preventing you from having to give out cash.

 

Magento Enterprise Benefit 6: Assisted Shopping

 

We only got time to briefly cover this in the presentation, however it is a crucial feature for the software. With customers demanding a higher level of customer service for online shopping these days, the Assisted shopping feature of Magento Enterprise allows you to over deliver. It allows you to populate the customers cart with the products that they are seeking remotely.

For example, if a customer contacts you on live chat and asks where to find your blue shorts, you can access their account and add them directly to the cart for them. This is especially handy when dealing with those who aren’t as computer literate. And it also helps if you have a wholesale side to your business where people ring in their orders as it allows you to populate their cart – then they just need to checkout.

 

Magento Enterprise Benefit 7: Automated Email Reminders / Abandon Cart Feature                   

The last feature of Magento Enterprise that we covered was its automated emails and abandon cart functionality. This is one of the most exciting areas of the software as it can have a direct impact on your conversion rate and sales.

In fact, did you know that on average 68% of shoppers will abandon their purchase at the shopping cart?

Now imagine if you could lower this number to 58%…Imagine what that would do to your bottom line? If you’re still crunching the numbers it’s not a 10% increase in your sales – It’s 31.25% increase! And the best part – Magento Enterprise comes with the ability to achieve this.

Users of remarketing emails like we’re going to talk about below have reported an 18% conversion rate from these messages – with open rates as high as 52%.

 

How do they work?

 

To help you understand exactly how automated email reminders work and how in-depth you can go with Magento Enterprise’s features, below I’ve outlined a strategy that I’d recommend that you implement in your store to maximise your sales:

  1. 2 hour follow up – In this email kindly remind them that you are holding their purchase.
  2. 24 hour follow up – Remind them that you are still holding their purchase for 2 more days
  3. 2 day follow up – Offer a discount that is valid for the next 24 hours
  4. 7 day follow up – Promote a financed service such as AfterPay that can help them afford their purchase.
  5. Custom emails – You can then dig deeper by segmenting specific emails to people such as High rollers and frequent customers. Here you can offer higher discounts or other incentives to get them to complete their purchase.

 

But that’s not all. With this same feature you can set up numerous other campaigns that will all drive your revenue indirectly including:

  • Encouraging product reviews – Which influence 98% of people as much as a personal recommendation from a friend. By setting a automatic email
  • Asking for referrals – Magento Enterprise also features a store points system that allows you to incentivise your shoppers to refer friends. By setting an automatic reminder email you can encourage these referrals automatically.

 

 

Conclusion:

 

As you can see Magento Enterprise has some huge benefits and comes packed with some extremely powerful features.

If you’d like to read all about the features of Magento Enterprise click here.

Alternatively, if you’d like to find out more about how you can grow your business with the platform, then give us a call on 1300 790 554 or send us an email on the contact page, and we’ll be happy to help out.