Here at Magento Business Intelligence, we’ve helped hundreds of
merchants make smarter decisions using their data. Some
metrics, like sales, gross margin, and average order value, are
important to every merchant. Depending on your business,
however, there may be additional dimensions in your data that
can give you a unique competitive edge. Today, we’ll focus on
one dimension that’s especially relevant to merchants in the
UK: geography. Below are three ways that merchants in the UK
and surrounding countries can use their geography to their
advantage.

Cross border shipping analysis

Most UK merchants have a healthy customer base outside of the
UK, and this makes for an important and easy-to-define
dimension for customer segmentation: country. As a customer,
ordering from a merchant that lives in another country can have
big implications around price, shipping, inventory
availability, and more. As a merchant, marketing to
customers outside of your country also has big implications on
your logistics, acquisition channels, and even your legal
terms.

Make sure you’re able to calculate Customer Lifetime Value
(CLV) for each of your customers. This is the most important
metric about your customers because it captures things like
average order value and repeat purchase rates all in one
number. Once you have CLV available, look at the CLV of the
customers in each country that you sell to and look for trends.
Are customers from certain countries reliably worth more than
others? Do they come back to buy more? If you have acquisition
cost data, do they cost more to acquire? The answers to these
questions should be informing how and where you invest capital
to acquire customers, domestically and internationally.

Currency conversion analysis

Changes in currency conversion rates can have a big impact on
your profitability, especially if you hold inventory. They can
also impact customer demand in countries with different
currencies from the one you charge. Look at foreign currency
conversion rates to give you a picture of how different
conversion spot rates may impact demand. This can help clarify
how much risk exposure your business has to fluctuating
exchange rates and when you may want to alter your acquisition
strategies based on a local currency’s impact on demand.

Multi-language support

When dealing with a high number of international buyers, there
may come a time when it makes sense to translate your site into
multiple languages. This requires investment, so you’d better
be sure it’s worth it! You can understand your potential ROI
better by analyzing the countries where your products are
selling well. Do they have a large population that does not
speak the default language of your site? If so, you can
quantify the increase in market size you will create by
investing in the translation and internationalization of your
site. This is a great example of data-driven strategy.

If you’re looking for a platform that allows you to build,
study, and collaborate around metrics like these, sign up today
for a free demo of Magento Business Intelligence, or join my session
at MagentoLive UK 2017
where I’ll be covering the new
dashboards included in the new Magento BI Essentials tier.