Mens Et Opera - Reloaded

As promised at the end of one of my recent pos ts , let's have a closer look at the long tail approach and how PIM supports it.  The driver for the long-tail model is customers expectations. In fact, they demand an increasingly larger and broader assortment of products through various online channels given that the shelf space is no longer a concern. The key insight here for independent retailers is that expanded offerings and selection can reveal demand that was otherwise not known to exist.  The benefit of a long-tail strategy is that products in the long tail can be sold against a higher margin. Aberdeen reports up to 29 % higher profits due to higher product margins in the long-tail assortment. The challenges for many companies, however, is the actual management of large assortments.  The graph below shows the relationship with the size of a company’s assortments and having a PIM system.  Retailers with and without PIM in relation to their assort...

I have noted that the (right) emphasis on customer-centricity is drawing attention away from the other fundamental constituent of most businesses: the product! This should not be the case. I had an engaging conversation with an industrial designer yesterday. It is amazing how much of their work is focused on customer expectations and product design to match those expectations. Retailers should learn a lesson here in a multi-disciplinary approach to break down silos, extend their market share and their share of customer. In her words: Product Centricity is your strategy to design, manufacture, distribute to people who needs your product. Customer Centricity is your strategy to satisfy individual customers by meeting as many of his/her needs as possible. End quote. This point has been greatly exemplified by Don Peppers , founder of Peppers&Rogers Group. Here is his take: [It] should be clear that customer centricity doesn’t actually conflict with product centricit...