Happy Holidays, Happy HoliData
In case you have missed our #HappyHoliData series on Twitter and LinkedIn, I decided to provide a short summary of best practices which are unleashing information potential. Simply scroll and click on the case study which is relevant for you and your business. The series touches on different industries and use cases. But all have one thing in common: All consider information quality as key value to their business to deliver the right services or products to the right customer.
Thanks a lot to all my great teammates, who made this series happen.
Happy Holidays, Happy HoliData.
While virtual reality isn’t new, the technology has recently been picking up speed in the tech world. With Facebook’s purchase virtual reality company Oculus earlier this year, the momentum behind the technology hasn’t ceased to increase. With the commercialization of a consumer ready virtual reality product next year, what does it mean beyond the realm of gaming? Is it significant for brand manufacturers and retailers? Will VR be a trend, or reserved solely to gaming or will it reshape how consumers all over the world interact with brands and products?
I was only recently made aware of those new technologies, by my colleague Nicholas Goupil. He introduced me to products such as the Oculus Rift and the Samsung Gear VR, which are products poised to participate in revolutionizing the gaming industry. While not a “gamer” myself, it was nearly impossible not to think about the commercial possibilities.
Gaming aside, what does it mean for brands and retailers? Could this new wave of VR products provide customers with experiences that will redefine product merchandising?
Some thoughts on use cases for Virtual Reality
- Travel and Hospitality – Become a globetrotter from the comfort of your home. (Japan example)
- Real Estate – Walk thought a house as if you were there.
- Test drive a new car’s interior from the comfort of your home
- Movies: forget 4K resolution, how about full 360 degrees 4K real time recording and playback?
- Sport events: experience replays or the game in full 360 degrees motion
- Concerts: Have the best seat in the house (no pun intended)
Clearly, VR products like the Oculus Rift are still in development, with consumer products promised for 2015. With the company’s recent acquisition of Nimbus AR, a company focused on making the VR experience a more natural and interactive one, the future of such a product seem endless.
What are your thoughts and expectations with VR? Do you think it will be life changing for consumers and businesses? Rendering large volume digital assets is no longer a issue today. For me Virtual Reality will open total new ways to envision customer experience in 2015 and beyond.
LNC Group analysts recently released their second PIM market and vendor report. And, for the second time, Informatica has been positioned as the leader in the 2014 PIM Market Performance Wheel, issued by LNC in Germany.
Informatica Ranked First in Latest LNC PIM Market Performance Wheel
Informatica’s continued leadership position in the LNC PIM Market Performance Wheel reaffirms the strong execution and vision of our PIM product. Our ranking also reaffirms the acceptance of our product among our customers. Our PIM focus is to provide a data-fueled application that empowers business users to sell their products more quickly. When integrated with Informatica’s leading multidomain Master Data Management (MDM) product (based on our Intelligent Data Platform) our customers have a complete solution. This integrated solution is both flexible and business-user focused. This allows our customers to offer the right product to the right customer at the right time.
It has been a year of strong recognition for the Informatica PIM product line. After being positioned as a leader in the Forrester PIM Wave, being named a HOT Vendor in the Ventana Research PIM Index, the leading position in the Information difference MDM landscape, hitting the bulls eye as champion in Bloor’s MDM report and the highest revenue growth with 57% due to Gartner’s MQ for product data (average market growth was 8.7%), the LNC Market Performance Wheel completes the picture of our PIM vision.
LNC’s PIM Market Performance Wheel covers the top eight ranked vendors analyzing four categories as technology, ability to execute, market strength, and future readiness. These are the key findings:
- Informatica PIM achieved the highest ranking of all vendors with 85 points and leads three of four categories evaluated
- Informatica PIM realized the best in market strength
- Informatica leads the pack in ability to execute
- Informatica has the highest future readiness rank
Read this report to understand the major PIM vendors, including Informatica, and their strengths and weaknesses. Our Informatica PIM delivers real value to customers across multiple industries, business cases, and geographical regions. Informatica PIM helps companies to sell more products, faster.
Informatica PIM provides a centralized platform for omnichannel commerce. We empower companies like yours to:
- Improve customer experience
- Optimize supply chain
- Speed up time to market
The PIM Market Performance Wheel is the perfect resource if you’re exploring a PIM project. Learn more … download the German version now
If you frequently read my blog, you know that traveling, reading and observing people often leads to new articles and views. This blog entry was influenced by a recent article, from FTWeekend, that I had the pleasure to read on my way to the San Francisco Bay Area.
When I subscribed to a VIP shopping club, in order to get special sales offers, the outlet store asked me for my household income. They also asked which age group I belong to. At that point, I realized that I had, again, entered into a new buyer age group. This fact inspired me to write this blog.
According to the Financial Times, aging populations in many countries are driving economic growth by creating markets for new products and services. This phenomenon is often referred to as the “Silver Economy.”
To achieve Commerce Relevancy, you must make your products relevant to the “Silver Economy” group.
Baby-Boomers Power new age of Spending
By 2020, the silver economy’s spending power will reach 15tn USD, writes FT. In the USA, AT Kearney says that in 2013, consumers aged 55+ contributed to 30% of US clothing sales. In 2013 as well, In the UK, those figures for consumers 65+, accounted for 15% of the fashion and footwear market. Boston Consulting Group says: “We are still waiting for fundamentally new products to meet the desire of this older group”.
Two Main Challenges
CPG companies and analysts see two main challenges when addressing the golden generation.
- Packaging: Will packaging need to change? If so, how? What risks are related to changing the packaging? Everyone agrees, testing will be essential in order to make the right decisions.
- Marketing: Baby-Boomers and members of the “Silver Economy” group do not consider themselves as being old. Then, how can be find the right tone of voice when running successful marketing campaigns while also aiming not to upset clients?
Brands and retailers are already adopting marketing strategy changes by having celebrities participate in the brand experience of personal goods. In addition, they also started working with new faces of fashion like Charlotte Rampling, Jessica Lange, Twiggy and Lauren Hutton.
“60-year-olds and 40-year-olds are dressing very similar”, said Simon Wolfson, CEO of retailer Next, to FT. I can confirm this, as I’ve experienced myself with my father in law. Very often I see him wear shoes or a jacket, that I could see myself wearing and that makes me jealous. Can it be true? Has my father in law adopted a fashion style similar to mine? With that in mind, were his purchase decision influenced by the same marketing campaign that would have attracted me?
Same Same but Different
The same products can be marketed differently. In order to better target those finding themselves in the Silver Economy group it might be necessary to build “references” to icons or music that relate to their past. Personally, I believe this is what commerce relevancy is all about, it’s about increase marketing relevancy in regards to customers. An example, triggering an emotional response from my father in law with a song that relates to his youth, whereas this song leaves me indifferent, is a clever way to highlight to him being older.
For example, in Asia where the demographic shifts is the biggest, the region’s biggest retailer, Aeon, built malls with wider aisles and plenty of seating area, to accommodate this change.
New Challenges for Information Management
Marketing the same products to different target groups will lead to increased complexity in from the perspective of product information. The same item can be available in two or three different kind of packaging. Other colors, just different haptic and more.
However, the key will be building intelligent connections between products and target personas. Baby-Boomers are using different touch points and information sources, then younger people. For retailers and CPG companies this means that it is becoming progressively challenging to serve all channels with the consistent and the relevant information across all their target groups. Just one use case for Commerce Relevancy.
Did you know 2013 E-commerce sales numbers did grow by staggering 47%, but 2014 are supposed to only grow by 17%…
The Eastern Europe B2C E-commerce Report 2014 was launched by E-commerce Europe recently. It comes with the 2013 facts and figures of E-commerce in Eastern Europe, all figures are based on the Global Online Measurement Standard for B2C E-commerce (GOMSEC).
The Eastern European region, including Russia, Ukraine, Romania and others, ranked fifth in terms of E-commerce size in 2013, with a European market share of 5.3%. The total 2013 B2C E-commerce economy of Eastern Europe amounted to €19.3 billion, a 47,4% growth compared to 2012. Online sales of goods and services are forecast to reach €22.6 billion in 2014, which would mean that the growth rate is going to drop significantly to 17.1% in comparison with 2013. E-commerce Europe’s research also reveals that approximately 34 million consumers in Eastern Europe bought goods and services online in 2013.
The digital industry is increasingly discussing the topic of Commerce Relevancy. Commerce Relevancy makes information relevant to consumers at the right time and place. Specifically, it ensures sales and marketing offers and materials are personalized at the highest level and consistent across all customer touch points. This post will talk about how much Commerce Relevancy matters and will explain the six building blocks that comprise it.
Commerce Relevancy in Fashion
I am a runner. For motivation, I track the majority of my runs on my iPhone. I use an arm band from a leading sports apparel company to carry my iPhone. I’m a great supporter of this apparel brand in general. I love their style so I shop from them frequently. Sometimes, when I travel the US, I shop in their outlet stores. Primarily, however, I shop on their official web-store using my iPad or mobile phone. Since I am a “fashion victim”, it is not easy for me to remember all the channels, shops and websites I have used to buy this brand’s products.
Why am I telling you all this?
For the past few weeks, I’ve repeatedly received email newsletters from this brand, promoting sporting outfits that don’t match my style or size. (Most of the promotion has been products for women, rather than for men, etc.) As a repeat customer, this lack of promotional accuracy has frustrated me. I have purchased many items from this brand. I’ve even shared their logo on twitter and Facebook. Despite my commitment to the brand, the brand still does not know which products I need or which styles I prefer.
Commerce Relevancy in Automotive
I have had a similar experience with my favorite car manufacturer. My wife and I have purchased three of this brand’s cars in the past. We currently lease one of their cars. When I need maintenance, I only visit this brand’s authorized repair garages. I only use official spare parts. Despite my loyalty to the brand, every time I call their stores, I am asked for my phone number. No one from the brand has ever approached me to test a new car, even though my current lease will soon end.
Once, when my current car was being repaired for several days, I requested permission to test drive a particular model, until my current car was ready. I was interested in this new model as a potential next purchase. I was told “it is not possible to test drive the car you’re interested in during the repair process. You may only use the official car rental service.”
Can Relevant Information Make the Difference?
The chapter of “Commerce Relevancy” started in 2013. The eBook on the “Informed Purchase Journey” mentions that consumers use average of 10.4 sources of information before taking a purchasing decision.
What this means for all companies and business people who sell products and services:
They have to earn every new sale to customer who is demanding more information than ever before.
The Meaning of Commerce Relevancy
In order to enable Commerce Relevancy, companies are now asking themselves how to connect the dots between supplier, location, customer and product information. In this business use cases customer profiles or target group personas get match with product information in sales and marketing. The key challenge his to connect the data but also to provide them to customer facing apps and touch points.
6 Building Blocks of Commerce Relevancy
- Product powered: Inside and outside your organization customer and employees have a consistent view of the products you sell, regardless of the touch point.
- Customer centric: No matter, where or how a client interacts with your company, you are able to generate a single view of the customer with address, interaction, and relation data.
- Relationship driven: The biggest value today and tomorrow lays in “connecting the dots” between different information like the availability of a product, from a supplier or warehouse, to the client who demands it.
- Bi-directional: Serving clients with really tailored marketing is only one way – the other way is the feedback on products and services and how this can be re-used.
- Predictive power: With Commerce Relevancy, companies take simple eCommerce recommendations to the next level. This means predicting the next logical action, based in information. This can empower business users to do the right things, data-driven. This makes the customer spend more, data-driven. Happy to give you examples if you reach out to me @benrund
- Real-time data: Customer always want it now. Changes on product offerings, transactions customer make, service centers they call – a service agent always needs to have the complete view with real time data.
Stay tuned for the next chapter of this blog series: “How companies can achieve commerce relevancy step by step.” It impacts, people, processes and technology.
With projected online sales of €47.8 billion for 2014 and an average annual growth rate of 22% since 2010, the e-commerce market is a beam of hope for the crisis-struck Southern European region on its path out of the recession. Goods and services sold online in Southern Europe in 2013 amounted to a total value of €40.8 billion, making up more than 11% of the total online sales in Europe. The region, consists of Spain, Italy, Turkey, Greece, Portugal, Croatia, Cyprus and Malta.
This is all revealed by the latest Southern Europe B2C E-Commerce Report by Ecommerce Europe, the European umbrella organization for 25,000+ companies that sell products and/or services online to consumers. Figures in the Ecommerce Europe reports are based on the Global Online Measurement Standard for E-commerce (GOMSEC).
Here are some facts on ecommerce in Southern Europe, I find worth mention
- 48 million online shoppers: Southern Europe is fertile ground for online retail activities; of 125 million active Internet users, 48 million are buying goods or products online.
- Spain leads the region: With total e-commerce sales of €14.4 billion, Spain is leading the Southern European region, ahead of Italy (€11.2 billion) and Turkey (€8.9 billion).
- Greek e-shoppers spent most in 2013: On average, Southern European online shoppers spent €842 per person in 2013. This amount is significantly less than the EU28 average of €1,500 and the European average of €1,376.
You can download the full Southern Europe B2C E-Commerce Report by Ecommerce Europe here.
The Western European B2C ecommerce market is developing extremely well. In fact, the Western European ecommerce market is expected to reach € 204.7 billion in 2014.
Online Sales to Reach €204.7 Billion in 2014
Just like the year before, the Western European region, comprising Belgium, France, Ireland, Luxembourg, the Netherlands and the United Kingdom, was in first position with regard to e-commerce size in 2013, with a European market share of 49%.
The total B2C e-commerce economy of Western Europe amounted €177.7 billion, a 12% growth compared to 2012. Online sales of goods and services are forecast to reach €204.7 billion in 2014, a growth of more than 15% in comparison with 2013. Ecommerce Europe’s research also reveals that 95 million consumers in Western Europe bought goods and services online in 2013.
Average Western European E-shopper Spent €1,867 Online in 2013
On average, Western European e-shoppers spent €1,867 per person online in 2013. This is far above the European average of €1,376 and EU28 average of €1,500. The United Kingdom leads the way with €2,614, making their e-shoppers the biggest online spenders in Europe. Within Western Europe, Ireland, Luxembourg and France follow with €1,643, €1,533 and €1,503, respectively, per online shopper.
For additional information, you can download the full report here.
Ecommerce Europe, the European umbrella organization for 25,000+ companies selling products and/or services online to consumers and collaborating with the regional associations. The total Northern European e-commerce economy of goods and services sold online amounted to €33.2 billion in 2013 and is expected to grow to €36.8 billion in 2014.
Online sales expected to reach €36.8 billion in 2014
The Northern European region, including Sweden, Denmark, Finland and Norway, is now in fourth position with regard to e-commerce size, with a 9.1% European market share. In 2013, the total B2C e-commerce economy of Northern Europe amounted to €33.2 billion, a 13.7% growth compared to the preceding year. Online sales of goods and services are forecast to reach €36.8 billion in 2013, which represents a growth of 10.7% in comparison with last year.
The average consumer spends more than 1700 euro online
If you are intersted in learning more details and figures on growth, marketsize on country level for Norway, Sweden, Finland, Denmark, Estonia, Iceland, Latvia and Lithuania, you can download the full B2C Ecommerce Report for Northern here.
Did you know Harrods introduces more than 1.7 million new products every year? This includes their own labels, as well as other brands. Recently, Peter Rush, the Harrods Solution Architect responsible for product information, spoke at Informatica’s MDM Day EMEA in London. At the event, he said there are:
“so many things we want to do: Product Information is at the heart of most of them.”
As part of the customer experience program, Harrods identified product information quality as a key asset, next to customer information management.
The Product Information Challenge Harrods was facing included the following:
- A Lack of a single Product data store
- Inappropriate Product Data objectives
- Massive scale and volume of products and brands (1.7 million new products per year)
- Concessions and Own Bought
- Localized enrichment
- Media Assets all over the estate
While discussing his product information management project, Peter gave a great and simple example. He showed the product descriptions below and asked, “Who knows which two products these are?”:
- XX 6621/74 BLK VN SS TOP 969B S
- XX37066 L/BLU PRK FLAN SH 440B MED
Then, he solved the mystery. The answer was this:
- Black V-neck sleeveless top
- Light blue parker print flannel shirt
Turning vision into reality needs a joint business and IT project
Peter said, it is important to build a “flexible team to meet needs of each project stage, with representation from key business areas”. The team should include representatives from groups like: Merchandise Data, Buying Team, Web Team, IT, CRM and the Shopfloor Team. In addition to their Core Project Team, Harrods defined a Steering Committee and a group of selected Super Users.
Benefit summary: a combination of people, technology and process
At the end of the session, I was impressed by this graphic. This image sums up the essentials of product information management success. It is about the people, who are able to do the right things. It is about how technology enables automation. It is about the process which turns information into value.
Finally it is important to mention our partner Javelin Group is leading the PIM implementation at Harrods. Also Andy Hayler, analyst from The Information Difference, wrote an article for the CIO Magazine.