Infomatica overview of pim with benefits

The Informed Purchase JourneyHow product information can dramatically alter the customer’s buying experience and power sales in retail

Introduction

Only a few years ago, when we wanted to buy something, we’d consult brochures and catalogs or look for a knowledgeable salesperson. Now, the way we buy has changed beyond recognition. And it keeps being reinvented.

First we went online.

The internet was a revolution in transparency. With a few clicks, we now compare retailers, prices, products, and features. We do our own research and have become super smart about what to buy, who to buy from, and how much to pay.

Then things got social.

Today, we’re routinely seeking other people’s opinions on products we’re excited about. We take pictures, we review and rate and publicly share our feelings, advice, photos, and videos about everything from hotels to toothpaste.

Today, we’re mobile.

Now all that information and all those social recommendations are in our pockets. And shopping has once again transformed.

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The power is in your customers’ hands.

Put these trends together and you’ve got a completely new – and enormously demanding – consumer. The way we sell has got to change, too.

The increasing need for product information.

Turns out that one thing hasn’t really changed all that much: before people buy, they have a million questions. And if you can’t answer their questions – with clear, comprehensive, and up-to-date product information, photos, videos, and reviews – you’re not going to make the sale.

No matter what you’re selling, or in which channel.

You want to sell the product – make sure you bring the data.

This is not going to change: new prospects, existing customers, retailers, bloggers, and tweeters are having conversations about the products you’re selling.

Your challenge is to join in and become the most reliable and attractive source of information there is. So your customers won’t need to go anywhere else.

This ebook is about harnessing the power of product information throughout the new purchase journey. We hope it helps you discover ways to manage your information actively, to package it well, and to leverage its power to attract and convert shoppers.

Introduction






This is the new purchase journey

Let’s take a closer look at the way shoppers buy today. How have consumer behaviors and the role of product information changed since the advent of chunky bandwidths and social buying? The new purchase journey looks like this:

Shopper-controlled

The days of the single visit to a trusted store are gone. Today’s shoppers are in control. They’re hugely aware of their power as consumers, and they’re exercising it freely.

Multichannel

Buyers aren’t using one specific channel anymore. They’re shopping in stores, the web, on mobile apps, in social channels, and from catalogs simultaneously. And new channels are opening up all the time.

Social-powered

Purchasing decisions are “crowd-informed”: recommendations and reviews guide consumers and validate their choices every step of the way.

Search-guided

Shoppers used to be dependent on a few sources of information. Now there’s Google. So they go and hunt for answers themselves.

So more than anything else, the new purchase journey is an individual learning journey, led by empowered and info-hungry shoppers. And make no mistake about it: these confident decision-makers will punish vendors if they’re being starved for information.






The #1 cause of shopping-cart abandonment is lack of product information

1

It just makes sense. We click away from shopping sites for three reasons:

• We’re just not sure the product is right for us

• We’re not quite sure the seller is the best source for the product

• �We’re�not�confident�we�have�all the information we need

Product information is crucial to business success because it injects desire and confidence – the fuel of every commerce engine.

There’s no limit to what we may want to know about a product – and any question left unanswered will inhibit purchase.

Here are six ways to give your customers what they’re looking for – so they’ll buy from you.






Six ways to actively manage your product information and help your customers buy from you

Provide consistent and up-to-date data across all channels1

10.2Travel

9.8Over-The-

Counter Health

18.2Automotive

11.7Insurance

14.8Technology

(Consumer Electronics)

5.8Quick-Serve Restuarants

8.9Investment

7.3Consumer Packaged

Goods: Grocery

10.8Banking

14.7Voters

8.6Credit Card

123 456

7Consumer Packaged Goods: Health/Beauty/Personal Care

1 Provide�consistent�and�up-to-date� data across all channels

Key: Category Purchased Number of sources used by the typical shopper

A 2011 Google study

2

shows that, on�average,�across�all categories, shoppers use 10.4 sources of information to make a decision.

This includes, among other things, watching TV ads, looking up manufacturer websites, talking to family and friends, reading reviews, and checking Amazon. So by the time consumers first get in touch with you, they’re already armed with heaps of product knowledge.






≠Research�channel�≠�purchase channel

• 95% of smartphone users say they’ve searched for local information.

• 90% of those users take action within 24 hours.

• 61% of smartphone users called a business after searching

• 59% visited a local business after searching.

5

In fact, 61% of retail managers believe that shoppers are better connected to product information than in-store associates.

3 Google has coined a

term for this elusive but critical stage of a shopper’s self-education: ZMOT or Zero Moment of Truth.

4

As well as their very own information sources, shoppers will also have preferred channels for buying. It may be a mix of channels, depending on the type of product, availability, urgency, time of day, etc. A purchase may start with an online search but end up being completed in the local store.







For�vendors,� this means two things:

1. You need an omnichannel strategy (if�you�haven’t�already�got�one).

• A customer who didn’t buy in one channel may well be won over in another: different channels will feed each other. Studies have shown that smartphone users do mobile research but visit a local business; and even old-fashioned print catalogs lead to a 30% boost in online sales.6

• Multichannel shoppers will spend, on average, 15 percent to 30 percent more than someone using just one channel…

• and omnichannel shoppers outspend multichannel shoppers by over 20 percent.

7

2. �It’s�crucial�to�deliver�the�right�product�information�in�every�channel. The biggest challenge for most retailers is consistency (another is completeness of information – we’ll talk about this below). Very often, information in your stores, ecommerce site, mobile app, and print catalog just don’t match up. You may well choose to share different information in each channel – but it all needs to be consistent and appropriate.








Lack of consistency is no minor oversight.

Consumers used to turn to established brands because they embodied reliable quality. In an age where quality is validated by ratings and reviews, it’s consistent product information that signals reliability.

It stands for a single point of truth, a unified customer experience, and better brand recognition – and it informs social recommendations and loyalty.

So whichever channels you serve, don’t send confusing messages: you may not be displaying the same product attributes everywhere, but do make sure they are consistent across all channels.






Action points for consistent and reliable data

• Get rid of information silos. Create one authoritative system of record. Get everyone to use that one central data repository.

• Become truly omnichannel. Structure your data so it’s universally usable – not channel-specific.

• Make sure your product information is always up-to-date. Collaborate with all stakeholders (suppliers, product managers, shipping specialists, etc.) to ensure your product information management (PIM) system always holds the most accurate and recent information. Automatic synchronization across all channels is key.

• Ensure access to centralized product data for anyone who may be in touch with customers. Your sales and support people should know at least as much as your most informed prospect.

• Connect your channels and increase convenience�for�your�customers.� For instance, offer a ship-to-store option or a local availability check.

Provide�consistent�and�up-to-date� data across all channels1






Offer product info in the right place, at the right time2

Time-to-market is one of the most important retail industry KPIs.

For vendors, this effectively means time-to-shop: the availability of a product plus the time it takes to collect all relevant product information so you can display it to the customer (product introduction time).

The biggest threat is not the competition – it’s your own time-consuming, internal processes. We call this Shelf Lag, and it’s a big inhibitor of retailer profits. Here’s why:

You can’t sell what you can’t display.

In many ways, your data is your product. And with ever-shorter sales cycles, you can’t afford to be wasting time consolidating your data. You need to have it ready when your shoppers are ready to buy – because if you fail to manage your product information, you’ll fail to sell.

Be ready to spin up new channels.

We’ve said it before, but it’s important to stress this: when consumers want a hot item, they want it now, and through whichever channel they prefer. That means your product information needs to be universal and flexible enough to wriggle itself into any shape and mold - including new channels that keep opening up (some that you may not have heard about yet).

Watch your margins.

It’s sad but it’s true: you need those top sellers for the number of sales, but the high margins are elsewhere. Category managers everywhere are realizing that the profits are in niche, ‘long tail’ products that sell at higher margins. Going with an Endless Aisle strategy, however, means an explosion in SKUs and attributes - often a problem for IT infrastructure, as well as supplier logistics.

2 Offer product info in the right place, at the right time






Action points for faster time-to-shop

• �Use�a�flexible,�centralized�data�repository for product information that all channels can tap into. So once the information is in the database, it’s also on the website/the smartphone/ the next print brochure.

• �Use�a�supplier/�vendor/�collaboration�portal that enables product information collaboration between suppliers and retailers. It will save precious time and manpower.

• ��Use�an�automated�validation�tool. This means that, for instance, there’s a rule in place to make sure “green” doesn’t appear under “size.” That saves A LOT of time.

• Develop�an�endless�aisle� (long-tail)�strategy.�Once a flexible product information management system is in place, it will enable you to handle large numbers of SKUs and attributes.

Offer product info in the right place, at the right time2






Make your data sets as complete as possible 3

Nine out of ten shopping cart abandonments are caused by poor product information.

A third of the people who click away say they didn’t have enough information to make a purchase decision.

8

Even more shockingly: 40% of all fashion purchases are returned, and in�electronics�it’s�15%.�With�an�average�return cost per package of $20,

9�profits�

are melting away.

Buyers return items because they don’t meet their expectations. Some even anticipate disappointment and order two or more variations of a product – because they just don’t feel confident in their decision.

There’s a powerful way to minimize returns: by answering every question buyers could possibly have – about sizes, dimensions, materials, compatibility, etc. The more complete your product information, the more likely it is that shoppers choose�wisely�(so�they�don’t�have� to�return�products).

Studies show that comprehensive product pages perform best. Buyers want 360- degree views that tell them as much about a given product as possible. Here’s a list of information assets that help buyers decide whether a product is right for them:

• Good-quality images

• Seeing a selected product in the color of choice

• Seeing a product on a model/ in use/ in a room setting

• Alternative views

• A zoom function

• Peer rating/reviews (such as “comes up big for a size 4”)

• Similar products

Better product information not only means more sales. It means better sales – with fewer returns.







Action points for more complete product data

• Identify which descriptors the master record needs for each category (weight, size, shape, color, material, etc.).

• �Define�a�person�or�team�who�is�responsible for data quality of that master record.

• Use a PIM tool that can handle different data sources and formats, so you can pull the best information into your system (e.g., from existing data pools and industry standards).

• Automate your data quality processes. Don’t waste time manually entering and checking data sets.

• ��Invest�manpower�in�completing� product information.

• �Involve�external�sources�to�improve�product data, and outsource work to suppliers,�vendors,�and�translators.

• Think�about�providing�an�online�chat�function to answer buyer questions. One in five consumers say they actually prefer online customer service (like chat, video chat, and email) to phone calls or in-person consultations.10







Make your data unique and rich4

When�everybody’s�offering the same product at the same or a similar price, the quality and richness of your product information becomes an important differentiator.

But as more and more vendors work from the same manufacturer data, that differentiation disappears – unless you enrich your (consistent, up-to-date, reliable, and complete) product data to make it more compelling and attractive.

Many companies still think of product data as neutral. That’s a mistake.

To the consumer, generic product data signals that it’s just another bike. What you should be signaling is that you inhabit your customer’s world and that your brand has a point of view. That you’re just as excited about the bike as they are, and that you know exactly what makes it special and why they should buy it from you.

Product data with an emotional appeal is a unique chance to engage customers and win them over. Enriching your ‘raw’ data with branded, proprietary descriptions, images, and video – then deploying this asset across all channels – will help enrich the customer experience everywhere.

Other�vendors�may�be�selling�exactly�the�same product – but they won’t be doing it with your style, clarity, and brand spin. And that’s where brand power kicks in.

Which dress would you rather buy? A 186 C or a ‘strawberry red stunner that’s perfect for Valentine’s Day’?

Or imagine you’re interested in a new bike: you’ve identified the one you want and you’re eager for more information that will support your decision. Isn’t it then disappointing to find the same manufacturer-supplied product description and specification list on every vendor’s website?

4 Make your data unique and rich






Action points for more appealing product data

• Use media assets with a strong emotional appeal wherever you can. Images and videos that show the product in use greatly boost sales (see our sidebar “Videos sell: the numbers.”)

• Use a digital asset management (DAM)�system�to manage your media assets for use across all channels.

• �Infuse�copy�and�descriptive�data� with branded language - don’t just copy that supplier marketing text. Make it rich, proprietary, creative, and emotional.

• �Provide�target-group-specific� product descriptions for each customer segment.

Videos sell the numbers

• Using video demos of items on product pages increased sales for Zappos by between 6% and 30%.

• Shoppers who viewed video on Stacks and Stacks product pages were 144% more likely to add to cart than other shoppers.

• Shoeline.com improved the conversion rate by 44% for product pages containing videos.

• On Ice.com, the conversion rate for shoppers viewing video on product pages increased by 400%, while return rates dropped from 12% to 9%.

• Videos on the simplypiste.com product pages increased conversion rates by 25%, as well as leading to a reduction in the number of returns.11

4 Make your data unique and rich






Connect your data for maximum effectiveness5

We’ve�talked�about�the importance of presenting a single face across channels.

Today’s buyers expect vendors to know about them: their past purchases, their preferences, their devices – and they expect your communications to reflect that knowledge.

That’s why it’s so important to use everything you know – about your customer, your product, and your supply chain – to maximize the value of data.

A master data management (MDM) system connects your product data with valuable information found in other applications such as CRM, ERP, Marketing Automation and with supplier and contextual data like location and device. MDM can help you answer questions such as:

• Which products has this customer purchased?

• Which channels were the products purchased from?

• Who were they purchased for?

• Which employees were involved in these sales?

• Which suppliers provided the products?

Connect your data for maximum�effectiveness5






The�benefits�of�connecting your product data with just your customer data are immense:

• Make better recommendations – by connecting what you know about each customer with what you know about every product.

• �Improve�the�omnichannel�customer�experience – by getting the right product information to the right place at the right time for each customer.

• Target product information better – according to where the customer is (in your store?) and what device they’re holding.

• ��Drive�up�margins�–�by suggesting the relevant products with the best margins, or stock availability, or to earn supplier volume discounts.

• Improve�your�supplier�performance – by connecting your supplier relationship management data with the product information they supply.

Connect your data for maximum�effectiveness5






Action points for connected data

• Integrate your PIM data: deploy MDM to connect your product data with other data repositories: With CRM – for cross-selling and upselling opportunities, personalization and relevant recommendations With supplier data – to drive better supplier relationships With ERP – to inject the product offers best-placed to make you money With�contextual�data – to target product information by device, location, weather, language, etc.

Connect�your�data�for�maximum�effectiveness5






Embrace social power6

It’s a fact: happy customers generate more customers.

That’s why ratings and reviews are such powerful conversion drivers – and such a vital part of any product information management initiative.

Customers�actively�look�for�recommendations before they buy. Here’s why you should embrace that:

• Most reviews are good: the worldwide average for product reviews is 4.3 out of 5.

• 80% of reviews on the site of a given retailer are written by the top 20% of their customers (by lifetime value).

• Users pay attention to social signals like reviews. Listings that averaged three or more stars in reviews took 41 out of 47 clicks.

• The volume of reviews matters. 29 of 47 clicks went to listings that had at least four reviews.

But what about the bad reviews? Yes, you’ll get those, too. Even water and gravity have haters. And seriously, would you trust a product that only got raves and thumbs-ups? Negative reviews signal credibility and authenticity. They show you’re not hiding anything. And sometimes, they say more about the reviewer than your product.

When�you�integrate�ratings�and�reviews�with your product data – more commonly called product information management (PIM)�data�–�you�ensure�they’re�available�across all channels, when and where they’re most needed.

After all, credible consumer opinion about a product is a vital piece of information for any shopper.

6 Embrace social power






Action points to�leverage� social data

• �Integrate�customer�reviews�(e.g.�stars)�with your product information and PIM platform.

• Make it easy for people to publish reviews�to�networks�like�Facebook�and�Twitter: then collect them for your PIM.

• �Display�ratings�&�reviews�alongside�product information – on product pages, category pages and during checkout.

• �Let�online�reviews�feed� your other channels: Put product ratings and reviews on packaging Use digital signage for real-time review feeds in-store Use pull-out quotes from reviews in print catalogs.

6 Embrace social power






Conclusion

Product information is the fuel of the new, informed purchase journey.

If we’ve convinced you of one thing in this eBook, we hope it’s this: product information is at the center of the modern purchase journey.

Faster markets, more channels, and seriously educated customers demand and deserve comprehensive, accurate, rich, and up-to-date product information.

Getting it right opens enormous opportunities as you embrace the omnichannel world. And mastering your product data makes it easy to extend your product assortment and create the high-margin Endless Aisle.

In short, investing in PIM processes pays dividends. In customer experience. In revenues. In process efficiencies. And in fewer product returns.

That’s what the PIM-powered purchase journey is all about.






A PIM platform to support your processes

PIM is a process and a discipline – but it’s also a technology. Here are the benefits of deploying the right PIM solution, as part of your wider data strategy:

Customer satisfaction:

71 % of retailers using a PIM solution reported increasing customer satisfaction and customer loyalty due to high-quality service and information.12

Conversion�rates:�

Retailers employing a PIM system reported higher margins & conversion rates in e-commerce. There is also evidence of increased profits through smart cross- and up-selling.13

Data quality:

Organizations with MDM or PIM systems reported a 17 % increase in the accuracy of their product master data, over 3.4 times the improvement shown by companies without these tools.14 More�efficient� internal processes:

• Faster product launches across all channels

• Instant updating across all channels

• Streamlined integration of suppliers’ data

• Optimized localization and reduced costs for translations

• Faster onboarding of suppliers

• Easy search and find

• Time savings due to automated data entry

In an omnichannel world, there is no going back to spreadsheets, information silos, and manual data entry. Talk to us about how better PIM can transform your own merchandising, marketing, ecommerce, and mobile initiatives.






For the hard facts about the business benefits of a PIM system, download our whitepaper: The�Return�on�Investment�(ROI)� of Product Data






http://www.informatica.com/Images/02529_return-on-investment-product-data_wp_en-US.pdf

http://www.informatica.com/Images/02529_return-on-investment-product-data_wp_en-US.pdf

This ebook was brought to you by Informatica

Let’s talk.

We make the world’s most complete PIM solution.

It’s part of a Master Data Management portfolio that’s changing the world, one company at a time.

Some of the world’s biggest, most successful, and most agile retailers and manufacturers rely on our PIM solution and our experts in PIM deployment.

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Sources

1. http://www.shopify.com/blog/8484093-why-online- retailers-are-losing-67-45-of-sales-and-what-to-do- about-it#axzz2tZvCkp00

2. Google ZMOT Handbook 2012, http://www.thinkwithgoogle.com/research-studies/2011-winning-zmot-ebook.html

3. Motorola Holiday Shopping Study 2012, http://www.motorolasolutions.com/web/Business/Products/_Documents/White_Paper/Static_Files/MT_White_Paper.pdf

4. http://www.motorolasolutions.com/web/Business/_Documents/static%20files/2011_Holiday_Shopping_Survey_North-America.pdf

5. Google ZMOT Handbook 2012, p. 20, http://www.think withgoogle.com/research-studies/2012-zmot-handbook.html

6. ECC multichannel survey, http://www.ecckoeln.de/News/Bei-knapp-jedem-3.-Kauf-in-Online-Shops-findet-vorab-eine-Inform

7. (http://www.retailonlineintegration.com/article/the-omnichannel-shopper-anytime-anyplace-anywhere/1#)

8. Internet World Business Magazine 2011

9. http://www.retourenforschung.de/definition_statistiken-retouren-deutschland.html

10. Google ZMOT Handbook 2012, p.48, http://www. think withgoogle.com/research-studies/ 2012-zmot-handbook.html

11. Econsultancy Ecommerce Best Practice Compendium, http://econsultancy.com/reports/ecommerce-best- practice-compendium

12. Informatica PIM ROI of Product Data for Multichannel Commerce, http://www.informatica.com/Images/02552_informatica-pim-roi-product-data_wp_en-US.pdf

13. Aberdeen Group, The Business Value of Product Data, p. 4, http://www.aberdeen.com/Aberdeen-Library/6533/RA-master-data-management.aspx

14. Aberdeen Group, The Business Value of Product Data, p. 3, http://www.aberdeen.com/Aberdeen-Library/6533/RA-master-data-management.aspx




