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Magento 2 Migration Drives Revenue Growth

Amanda Mulquiney-Birbeck
Amanda Mulquiney-Birbeck Digital Marketing Manager
22 Jul 2019

 

It’s official Magento has announced the date they will stop supporting the Magento 1.x platform. The date set in stone is June 2020. The key risk for online retailers who are still on Magento 1 Commerce after June 2020 is that Magento will no longer release security patches going forward. Migrating to Magento Commerce 2 can help merchants on Magento Commerce 1 offer a richer, more differentiated customer experience, increase mobile conversions, and scale faster with modern cloud infrastructure.

Key Magento 2 Benefits

Magento 2 was released back in 2015 as the latest version of the Magento eCommerce platform that is utilised by 1 in 4 businesses worldwide. It offers beneficial features that resolve issues many encountered with Magento 1 such as:

  • Improved Performance: Magento 2 sites will run on average 20% faster than Magento 1 sites. Highly performant sites have been proven to increase sales and improve search engine rankings.

  • Streamlined Checkout Process: Magento 1 has a hefty six (6) steps, while Magento 2 offers a simple 2 step checkout process and the Instant Purchase feature. With Instant Purchase merchants can now offer returning customers a faster checkout experience by using previously-stored payment credentials and shipping information to skip checkout steps altogether, taking them to a confirmation purchase page.  Sites with easier check-out processes (like instant purchase) have historically seen increased sales.

  • Better Admin Interface: This is a non-technical user’s dream! Magento 1’s user interface was often touted as confusing for business users, but Magento 2 offers a clean, user-friendly experience where even the most non-technical users can find tools and add new product listings with ease.

  • Mobile Friendly: With more customers than ever shopping on smartphones, it is imperative to have a mobile responsive site. Magento 1 sites did not deliver optimum performance on mobile devices, but Magento 2 makes mobile commerce a priority. With the release of Progressive Web Application (PWA) Studio in Magento 2.3, customers can take their mobile performance even further.

June 2020 is fast approaching. If you’re on Magento 1 you ought to start thinking about your Magento 2 migration sooner rather than later. To help you create a business case Adobe has commissioned Stax, a global strategy consultancy, to evaluate the value of a Magento 2 migration.  

The study analyses a significant sample of customers of varying size, geographies, and their paths to Magento Commerce 2 (those that migrated from Magento Commerce 1 vs. those that discarded a competitor’s solution). The study revealed the costs, KPI’s and other benefits associated with upgrading along with insights into the decision-making process.

“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.

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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 the 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 customisation 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 customised 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 online retailers thinking about migrating to Magento 2, the study presses the importance of selecting an experienced implementation partner. Magento Certified Partners are trained, vetted, and proven to deliver quality code that provides positive customer experiences for both B2B and B2C buyers. They can be the difference between success and failure when it comes to mapping out the configuration, critical functionality and preparing data migration, processes, and designing a roadmap for future functionality requirements. The Stax research found that Magento partners play a key role in helping organisations – both big and small – succeed.

“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 maximise the outcomes that you can achieve post-implementation.” To discover our 5 Must-Haves When Choosing a Magento Partner click here.

Adobe’s research with Stax shows there are many benefits to Magento Commerce 2 and this value will continue to grow as Magento continues to integrate their 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 Adobe calls customer experience management (CXM). CXM will separate the winners from the losers, and we’re here to help you become CXM experts and drive online growth.

There’s a lot to be excited about with Magento 2 with a whole host of new features and functionality, most noticeably - improved scalability, performance, B2B functionality and mobile optimisation.

If you’re planning on migrating to Magento 2 and would like a quote to re-platform then contact us, we’d love to hear about your requirements. 

 

About Maginus

Maginus is a multi-award-winning Ecommerce agency. In the past 12 months, Maginus has been awarded Magento’s Professional Solution Partner certification and were the EMEA winner of Magento’s Shooting Star Award at its Imagine 2019 summit in Las Vegas.

For retailers – big and small – for whom success depends on growing online, we provide what it takes to sell better online. We do this in two ways – by providing world-class leading Ecommerce websites to drive growth online, and by providing sales fulfilment technology solutions to facilitate excellent customer service.

As a technology-agnostic Ecommerce provider, we have several platforms, technology partners and always start by focusing on the best fit for our customers. With a 20-year heritage in ERP implementations and over 10-years’ experience in Ecommerce, we take pride in helping our customers grow online and deliver exceptional customer experiences, to find out how we can do the same for you contact us.