16 Dec New Instant Purchase for Magento Opens Opportunities to Drive Conversions
TO SPEAK WITH A MAGENTO EXPERT CONSULTANT ABOUT A MAGENTO UPGRADE, FILL OUT THE FORM ON THE RIGHT SIDE OF THE PAGE.
This week Magento launched a new update for Magento 2 that includes the Instant Purchase functionality after a patent from Amazon has finally expired. What does this mean for Magento retailers? It means that you have a small window of opportunity to take advantage or driving key e-commerce metrics before other platforms release this feature. The constant conversation is how Amazon effects independant sellers and brands and this time, they impact both in a completely different way. Amazon has spent the past 10 years educating consumers on how to execute a purchase with a single click purchase leading to increased customer loyalty and higher mobile conversion rates. Now retailers have the ability to implement this on their sites.
How do you install this feature?
All you need to do is upgrade Magento to the most recent version of Magento that was just released then configure the feature. You also need to review your payment gateway options and overall Magento configuration to ensure it’s functioning properly. We recommend you implement this carefully, which means, on a dev site with full quality assurance and testing prior to pushing this live. We also recommend that you ensure all of your security patches for Magento are up to date and that no core files within Magento are modified. We recommend this as best practice for every upgrade with Magento.
How long should the upgrade take?
It will vary based on your specific site. If there are conflicts with extensions or core files modified the upgrade will take longer. If the install, theme and extensions are clean and high quality it should be fairly smooth. We typically see a Magento upgrade take 30-60 hours of development time with proper quality assurance to apply. This is an upgrade with an instant return on investment though. If you have any sizable volume of repeat customers, you should see an increase in conversion rate to justify the cost of services to upgrade within 30-90 days. For example. If you see 1,000 orders a month with an average order value of $100 and your gross margins on that $100 is $30. Your monthly gross margin is $30,000. If this feature increases your conversion rate by .2% from 2% to 2.% percent you should see a return on investment from the 30-60 hours of professional services work in less than 60 days. It’s all profit from there.
How you should look at your metrics around this upgrade?
Good question. First off, don’t be concerned if your average order value decreases by implementing this feature. The ability to checkout quicker and more seamlessly creates less time for upsell and attachment, so we expect AOV to decrease. However your conversion rate should grow in a greater fashion than your AOV decreases leading to a higher revenue in total. Additionally, the number of customers that purchase more than 2 times will grow as well. The most important metric to look at here is Average Customer Lifetime Value.
What you need to know about the release
- Magento is first to market with the feature post Amazon patent expiration. Other platforms are surely working overtime to release this feature in short order.
- Time to purchase will decrease and AOV will decrease as well. Orders should increase to offset and grow sales
- Magento also released a native integration of DotMailer within the release to improve native marketing automation capabilities.
- Magento has rolled out Magento Advanced Reporting within this release as well
To speak with a Magento Expert Consultant about upgrading your Magento Store – fill out the form on the right side of this post. We will get back to you immediately.