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Wix (WIX) is poised to start offering its merchants tools they can use to drive customer value following the acquisition of Rise.ai. With the acquisition, the global SaaS platform gains access to a wide array of tools and solutions that merchants can rely on for customer re-engagement activities.
The acquisition underscores Wix's increased focus on enhancing customer retention within its Wix eCommerce platform. As customer acquisition costs continue to rise, the company hopes to make it easier and cheaper for eCommerce merchants to foster deeper ties with customers, to generate long-term value.
Rise.ai's re-engagement tools should allow merchants to increase the number of orders they receive from customers. In addition, they should help the merchants drive repeat sales and grow average order value. (See Wix stock analysis on TipRanks).
"By providing merchants with more native tools, we can help them grow long-term customer value and revenues to build their businesses and keep optimizing and increasing profitability. Rise.ai is considered to be the best solution of its kind in the market, and the integration will enable merchants to easily manage and maintain customer engagement tools, ultimately leading to increased loyalty and revenue,” said eCommerce Head, Arik Perez, Wix.
Wix was one of the biggest beneficiaries of the COVID-19 pandemic as customers resorted to online shopping. Needham analyst Bernie McTernan believes the company will extend its strong track record of keeping and growing revenue from its customer base.
“We look for Business Solutions, specifically WIX Payments, to grow as a percentage of overall WIX revenues, and think that its success will lead to multiple expansion for the stock,” McTernan wrote in a research note to investors.
The analyst has reiterated a Buy rating on the stock with a $340 price target, implying 18.51% upside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 13 Buy and 2 Hold ratings. The average analyst price target of $358.33 implies 24.9% upside potential to current levels. Wix scores a “Perfect 10” on TipRanks’ Smart Score rating system, suggesting it is likely to outperform the overall market.
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