As far as the market of Magento 2 extensions develops rapidly, we tried to estimate its current state and find the functionality gaps to become new products just soon.
Currently the market embraces over 500 modules and continues growing rapidly. Although each particular extension improves only a certain Magento function, we all realise that their ultimate goal is to increase sales. So, we thought that it would be interesting enough to discover the saturation of the standard sales funnel with dedicated extensions and find out most lacking segments.
It’s not quite a serious investigation, but more a personal view. So, below are the results based on 125 Magento 2 extensions selected from the best vendors.
From the very beginning we found out that most producers focus mostly on frontend enhancements. Surprisingly, only 32% of the reviewed extensions improve the backend functionality, while other 68% are made to improve customers’ shopping experience on the frontend.
It is hard to say whether this ratio is natural or artificially made by vendors themselves and reflects their inclination to the extensions with clear values. Anyhow, the room for Magento administration processes improvements certainly exists and new extensions will likely be favorably accepted here.
As we have already told, most of the Magento 2 extensions we came across are frontend-oriented or at least have the majority of functions that touch customers directly.
We distributed all of them within the standard sales funnel and discovered that Interest is the most crowded section of the sales process. 38% of all extensions fall in this section.
The extension range includes improved search and navigation, advanced on-site product promotions, rich descriptions, enhanced menus, etc.
The second popular segment is Retention. In fact, this group doesn’t apply to the funnel itself, but facilitates the process of generating repeat purchases. The modules in this section provide customer support and extra services, offer different loyalty programs, convert abandoned carts, convince customers to make a second purchase, etc. We found that 28% of all revised extensions are concentrated in this segment.
The logic behind this situation is clear in fact and looks advantageous from both marketing and business perspectives. Returning customers usually have better AOVs, can be engaged easier and allow business to become more stable, as far as usually they generate up to 50% of all sales.
The Desire stage of the funnel is also highly equipped with Magento 2 extensions. About 21% of them encourage customers to make a purchase with different incentives, including sales promotions, follow ups and coupons, free gifts, some additional services, and beneficial payment methods.
Now, what are the outsiders of our overview? We’ve got two segments of the funnel that are far less filled with Magento 2 extensions and may become a prospective market segment for new functionality ideas.
This category includes the modules that provide technical improvements of purchases, including the add to carts and checkout steps. This scarcity also looks reasonable as far as the Magento 2 native functionality is great for the purpose. Moreover, the customers that proceed to checkout will hardly abandon their purchase in this step. So, it takes only 5% of the whole bunch of available modules.
However, the Awareness stage of the funnel looks really incomplete. With only 8% of the extensions it still has a lot of room for improvements. For example, it would be great to have some extensions to improve content generation, optimization, distribution, promotion and analysis. This functionality seems to be even more required nowadays, when content marketing gains its momentum.
- Interest – 38%;
- Retention – 28%;
- Desire – 21%;
- Awareness – 8%;
- Action – 5%.
Since the sales funnel logic can’t be applied to Magento administration we divided the whole process into the next general areas: Store Function Improvements, Administration Process Improvements, Information Acquisition, Magento 2 SEO and Misc.
Backend related Magento 2 extensions are pretty rare and provided by only by several vendors. So, this segment experience only a week competition and should certainly be simple to enter and beneficial for future sales.
Store Function Improvements
Store Function Improvements is the most popular section here with the almost 33% share of the considered backend modules. They include shipping and payment improvements and some additional product and currency options.
This section has a great potential for new extensions only because of the fickle nature of eCommerce.
Administration Process Adjustments
Administration Process Adjustments is the next most populous section taking 28% of all backen extensions we reviewed. These extensions make daily routines much more pleasant and efficient providing the way to mass product and order management actions, and some other life hacks.
Magento 2 SEO
The same as in Magento 1 SEO is a thrilling theme for merchants and some extension providers pay much attention to it. Magento 2 made this area quite narrow due to the implemented SEO improvements, but the changes of search engine requirements make this segment always of current interest. Naturally, the number of dedicated extension is quite big for this segment – about 23%.
The last segment is quite narrow, but extremely valuable for marketers. Additional information about customers, their preferences and shopping patterns has always been the subjects of their keen interest. Only 8% of all extensions fall in this category, but it can definitely attract more new dedicated modules.
- Store Function Improvements – 33%;
- Administration Process Adjustments – 28%;
- Magento 2 SEO – 23%;
- Information Acquisition – 8%;
- Misc – 8%.
So, we can confidently say that the market is going to warmly meet new Magento 2 extensions for the backend and such extensions will not face any severe competition for now. To be more precise, the market lacks extensions for additional information about customers and their shopping habits.
The front end segment includes more extensions and some areas are equipped pretty good. Still, we can find some significant gaps here as well e.g. content generation and contribution tools.
In general, the choice of extensions is wide enough you could create and effective and functional Magento 2 store. However, if you miss some modules, we’d appreciate your attribution in the comments below.
Guest writer, Dmitry Shatkov is a Marketing Manager at Aheadworks in charge of the company’s Content Strategy and Distribution.