Study Shows Migrating To Magento Commerce 2 Drives Revenue Growth
by Craig Peasley
posted on 05-14-2019
Support for Magento Commerce 1 ends in June 2020. That means if you run a Magento Commerce 1 business, you need to start thinking about your migration today. And we’ve done some research to help you get going.
Earlier this year we commissioned Stax, a global strategy consultancy, to evaluate the business value associated with a Magento Commerce 2 migration. The study, performed by Stax, sampled customers of varying size, geographies, and their paths to Magento Commerce 2 (those that migrated from Magento Commerce 1 vs. those that ditched a competitive solution). Stax revealed key insights about the decision-making process, KPIs, cost, and other benefits associated with upgrading commerce solution.
“Benefits of migrating to Magento Commerce 2 include the ability to drive revenue growth, increase average order value, improve website conversion rates, and increase site traffic,” said Gregg Silver, engagement manager at Stax. “The key findings show there are clear benefits to migrating to Magento Commerce 2.”
Indeed, customers that have migrated to Magento Commerce 2 already experience a cost savings of 62% when deploying new content, such as landing pages, new product launches, etc. Here’s how: Magento’s intuitive user experience design makes it easier for marketers and merchandisers to create and manage content, freeing technical resources to focus on higher value needs and allowing for more tailored content. This will be augmented with PageBuilder functionality in version 2.3.
Customers also achieve greater efficiency through Magento Commerce 2’s extension marketplace. Versus building out comparable functionality on their prior platform, respondents saved an average of 91% when purchasing and implementing an average Magento Commerce 2 extension. For example, on a competitive solution, it would cost $11,000 to replicate the functionality of a Magento Commerce 2 extension that only cost $1,000. There are also built-in “premier” extensions that significantly cut down the time and money spent to implement key capabilities such as marketing automation, shipping & logistics, payment and fraud protection, and more.
Gregg at Stax said, “The breadth of platform is something that is top of mind for folks. The idea that they can get a feature-rich technology that is in a more open environment that welcomes extensions or customization is attractive, as are the efficiencies associated with Magento’s scalable architecture.”
Based on respondents that recently converted to Magento Commerce 2 from a competing solution, their reasoning for choosing Magento was based on how it can be customized to meet their specific needs. Customers reported they benefitted from Magento Commerce 2’s easy-to-use content development functionality, multi-site capabilities, native B2B functionality, and comprehensive security standards.
For those customers considering a migration from Magento 1, the study indicated that they should focus on selecting an experienced implementation partner, which can be instrumental in mapping out their current setup and desired performance, preparing migration of data and processes, documenting the critical functionality for implementation, and designing a roadmap for future functionality needs.
The Stax research found that Magento partners play a key role in helping organizations – both big and small – succeed. From solution partners to technology partners and community insiders, we have no shortage of trusted companies to help our customers transform and grow their business.
“Magento really does differentiate itself by having a robust network of partners who have experience implementing a variety of business cases, and have had success doing so,” Gregg said. “Make sure that you have the right partner because they can help you to prepare more effectively and to maximize the outcomes that you can achieve post implementation.”
Our research with Stax shows there are many benefits to Magento Commerce 2 and value realization will continue to grow as we continue to integrate our product into the larger Adobe Experience Cloud suite of products. Our future—and the future success of our customers – requires mastering the end-to-end customer experience, from discovery all the way through post-purchase. It’s what we at Adobe call customer experience management (CXM). CXM will separate the winners from the losers, and we’re here to help you become CXM experts.
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Topics: Digital Transformation
Products: Magento Commerce