Sample Report 24. Customers ABC Analysis - Magento Analytics

Report Description

This is one of the most advanced examples among Magento 2 business intelligence sample reports. It shows ABC analysis of customers by the revenue. In this case ABC analysis will show what proportion of customers generates 70%, 20% and 10% of the total revenue. 

A careful analysis of each single customer allows managers and business holders to understand who of them generates the most of the revenue buying your goods or services.

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Report Content

Filters: webiste, store, product category, customer group, date filter. These filters allow to restrict ABC analysis to certain website / store / product category or customer group.

KPIs: high overview of the ABC anlaysis with specifying what proportion of customers generates 70%, 20% and 10% of the total revenue.

Table lists top 200 customers by revenue.

Chart with ABC line. Typical shape of this line will have few items in A area and more products concentrated in C area. Customers in A area would be those that generate most of the revenue and require most of the attention.

How It Works?

If you are a successful and smart businessman, you definitely use the Magento 2 reporting extension for your profitable online store. Power BI Sales Cube extension installed on Magento e-commerce platform will help you run your business ventures smoothly and with profit.

Conducting the ABC Analysis

For the most valuable analysis, you should divide the metrics at four segments:

• sales revenue;

• revenue potential; 

• contribution margin;

• support costs.

Then, for these four categories develop four charts. Line up your clients in accordance with above mentioned categories and put them to your previously created relevant graphs. After this is done, make a comparison between revenue potential and contribution margin charts. With this comparison, you can begin to break down your customers into the three groups: A, B or C.

Reading the Result

Well, the most lucrative and profitable customers will be in the A category. So, if the head of your sales team asks you who will gain a considerable portion of your firm’s revenue, show him or her this very category. To perfection, this group of consumers will be close to the limit for your company’s revenue potential.

The second group is for your B category. This is the group that has a good potential for your revenue too. Why? Because these clients are loyal customers of your firm. It means that they order from you on a regular basis. So, to boost the revenue and to profit most, consider creating promos, discounts or other benefits for them.

Category C upholds the rest of your clients. They usually make spontaneous purchases and tend to return from time to time. Also, this category is for those who make many orders and pay for them but each and every order is for a small amount of money. It is commonly considered that these consumers have little or no potential to the firm’s profit. 

Check out more examples of Magento advanced reports and read about Power BI Integration with Magento 2 BI platform to get more information on how this and other reports can help your business.