Consumers expect rich data
and images to make purchase choices; business users need easy access to
analytical data to make mission-critical decisions. These increasing demands
for information are driving a need for improved product data availability and
accuracy. And this is changing the way businesses go to market.
A staggering number of
bricks and mortar and manufacturers are reforming their models to respond to
this challenge. The direct-to-consumer (DTC) model, while not new, is becoming
the centre stage to address these challenges. The optimal DTC model will vary
depending on specific and contextual business objectives. However, there are
many strategic benefits to going direct, but the main objectives include
growing sales, gaining control over pricing, strengthening the brand, getting
closer to consumers, and testing out new products and markets.
It is my contention that
while the DTC model is gaining the deserved attention, much is to be done. In
fact, among many challenges that this model poses, one in
particular is largely overlooked vis-à-vis the processes and activities
associated with sourcing product information from various providers, enriching
product data to drive more sales and lower returns, and managing increasing
product assortments across all channels. More precisely, the challenges that
need to be overcome are better exemplified by the following points:
- Products have several variations to support different segments, markets, and campaigns
- Product components, ingredients, care information, environmental impact data and other facets of importance to the customer
- People are visual. This is why easy navigation around the website is vital. Having eye-catching images of your products or services (perhaps as they’re being performed or displayed as intended) is an effective way to visually communicate information to your customers and make it easier for them to evaluate options. If information and pictures are readily accessible then customers are more likely to purchase your products or services
- Rating, review and social data, stored within the product’s record rather than in separate systems
- Purchasing and sales measurements, for example, sales in-store, return rates, sales velocity, product views online, viewing and purchasing correlations) are often held across several systems, but increasingly this information is needed for search and recommendation.
The
importance of product data and its use, combined with the increased demands on business as a result of
inefficient, non-scaling approaches to data management today, provide an
imperative to considering a PIM to ‘power’ cross-channel retail. Once
established, PIM users repeatedly report higher ROI. It is
also likely that we’ll see that PIM systems will rank alongside CRM, ERP, CMS, order
management and merchandising systems as the pillars of cross-channel retailing
at scale.
For all these reasons,
choosing the right PIM strategy (and partner) is now a key decision. Get this decision wrong and it could become an
expensive mistake.
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