Tag Archives: personalization

The World Cup: Everyday PIM Malpractice

The World Cup: Everyday PIM Malpractice

The World Cup: Everyday PIM Malpractice

If you’re an electronics-loving football fan, you may have used the World Cup as an opportunity to finally buy that coveted new large-screen TV. If you did, you weren’t the only one: In fact, UK retailer John Lewis reported a 47% sales increase on televisions the week of May 31. And, almost without exception, electronics retailers designed special World Cup offers to attract customers.

The World Cup drives a profound number of purchases. These purchases expose a stunning amount of what I call “PIM malpractice.” When there is a sudden surge in online product comparisons, the companies with effective Product Information Management benefit the most. The companies that lack effective PIM lose revenue.

It should be a no-brainer for electronics retailers to make sure their TV category product information is complete and up-to-date. After all, attributes sell. Unfortunately, many retailers still don’t understand the importance of consistent, accurate product information. Product information does sell  – especially online, where shoppers go for product research. This is especially true for a spec-heavy tech purchase like a big-screen TV.

Product information has enormous power. When it is accurate and consistent, it has the power to excite and guide shoppers. When it is incomplete or incorrect, product information can create deal-breaking insecurity.

A case in point:

Let’s for a minute replicate the customer journey to that new TV set. Say you want a new HD TV with a 50-inch screen. Your budget is around $1,200, and your spouse said “yes” under the condition that it’s wall-mountable. You visit an online shop and filter your search by price and screen size. The result: no fewer than 25 models to compare. This is what a detailed view of one of them looks like:

electronics_attributes

Apart from the prioritization of essential information (shouldn’t the screen size be displayed above the model number?), it seems pretty impressive. There are lot of information and explanations (hidden behind the information icons) that make the product take shape in your mind and help you learn what to look for. The only thing that seems to be missing is information about the wall mount…

What we can learn from the comparison function

Once you look at a few products in comparison, however, the situation changes quite a bit. Say you choose four TVs from your filtered search results and hit “compare products.” This is what your screen looks like now:

electronics_compare_products

The comparison view reveals the kind of product information deficiencies that inhibit purchase. Here’s what we can learn from it:

  • Data on all four products was incomplete. One of the first things the customer sees is a whole lot of grey: product information that’s missing. The single product view only gave the available attributes but the comparison function highlights the gaps. And gaps are bad, because…
  • The product with the most attributes sets the standard. Customers look to product information to tell them what they should know. Missing information or an attribute that isn’t defined always look careless – and what’s worse, it makes the product look inferior: If they haven’t bothered, they can’t think too much of the product, right?
  • Product information doesn’t simply exist, waiting to be written down. You have to create it. When it’s designed well, it sets standards and helps your products rise above the competition.
  • The unanswered question is always the most prominent. You still don’t know about the wall mount… And as a matter of fact, whatever far-fetched detail customers may want to know – it will always be the first thing on their mind. It may be their dream TV, but unless they know that one thing, they just can’t buy it.

So when I said in the beginning that brands and retailers don’t understand that product information sells, this is what I meant:

Modern shoppers always research product information, especially when making a major purchase such as TV set. That product information isn’t neutral, or nice-to-have. It is the product. And it needs to be treated with the same care as the product itself.

Retailers need to create their own standards: It’s not enough to just display supplier information. Rigorous quality control and information completion processes need to be in place if retailers want their product information to be better than the competition’s.

Great PIM comes from the customer’s point of view. When designing product information, the customer is the ultimate guide. Immersing oneself in their situation, and investing time and the combined brain power of category experts to think about anything they may want to know – it may the make or break of a sale.

That’s one recent example in one product category.  But the PIM problem can be seen across every retail category and on virtually every retail website or mobile app.

To brands and retailers that get it right, multichannel product information management is a secret advantage. It’s also the best way to leap out of the product comparison tables and into the shopping carts.

Imagine the wall mount is there and helps to convince the mainly male target group. Which information is needed to tailor digital marketing to different personas and target groups, depending on teams, nations, locations or what information can help to personalize marketing to people which are maybe not keen on football. What would attract them?

PIM electronics personalized marketing

What do you think? Did you find the right large-screen TV for World Cup watching? The World Cup shows everyday PIM malpractice. We’d love to hear about your most sought-after but least-found television attribute! (And for more on the importance of product information, check out our ebook “The Informed Purchase Journey.”)

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5 Ways to Personalize Your Product Recommendations

How Do You Target Your Customers at All Channel Touch Points to Individualize Their Shopping Experience? 5 Ways to Personalize Your Product Recommendations

Traditional in-store merchandisers frequently engage in new and refreshing ways to improve the shopping experience for their customers. With thousands of square feet of space, accessorized mannequins, and attractive kiosks and showcase displays, they’re afforded numerous luxuries in creating environments conducive to driving sales.

Since online retailers lack these merchandising luxuries, they leverage entirely different tools to enhance the customer experience, using key components of web-based shopping, such as search, navigation, and product recommendations. In the world of e-commerce, we’ve moved from merely selling to customers to empowering them. As a result, e-commerce directors and online merchandisers need to optimize the process by delivering what their customers want.

And what do customers want? Apparently, they want it all: the price and ease of point-and-­click purchasing, the experience of in-store visits, the convenience of home delivery, and the service of boutique shopping. They don’t think about product exposure. They don’t focus on the mechanics of the shopping process. And they don’t care about an e-tailer’s internal complexity. They want simply to buy what they need in a way that’s suited to them.

At the same time, because customers’ needs aren’t static, their online shopping experiences shouldn’t be either. They increasingly expect a personal and highly relevant interaction with the retail websites they visit. Failing to get that, they’ll often go elsewhere. For online retailers and brand manufacturers of consumer packed goods (CPG) this creates the challenge of customer retention.

Here are five hints to maximize the power of PIM for tailored product recommendations

To meet the challenge of customer retention demands leveraging product information management (PIM) to target your customers. This means customizing on-line shopping by boosting the relevance of product recommendations. To make the most of PIM, there are five things you should know:

1. To meet the expectations of your online customers, strive to understand them better by using data that’s qualitative and quantitative, historic and current; in addition, use data that provides a context critical to taking relevant actions.

2. To ensure that the experiences of your online customers aren’t static or boilerplate, make all key elements in the merchandising toolset intuitive and dynamic but, above all, tailored to the individual customer.

3. To leverage relevant content for other sales channels, consider the long-tail strategy and enhance the assortment. If customers dial in to the hotline, inside sales can leverage product search and automatic recommendations for intelligent cross- and up-selling within seconds. The hotline connects customer profiles and product information as well as availability on stock in your own warehouse or in the suppliers’ warehouse.

4. To present the best option to each customer, automate personalization of promotions and targeting. This means checking that every promotional banner that is presented has been optimized; banners that convert poorly must be automatically demoted and replaced by others that perform well. It’s all about automatic testing: Which campaign will convert best and which banner within that campaign—the blue, the red, or the one with a big arrow on it? Adopting an integrated approach ensures that a campaign will not be presented more than once on the same page. By using advanced techniques to understand which promotions appeal to each customer—and, more importantly, which don’t—the solution adapts in real time to present the most appealing banners in the context of each customer’s journey.

5. To ensure a cohesive customer experience, unify the many different information elements—filters, banners, promotions, product recommendations, and editorial content. Seen from the user’s perspective, these elements should all be parts of the same picture, presented in a coherent context. The user expects content shown in all of these panels to be orchestrated and related to what is relevant to him or her right now (see Figure 1).

Information Needs to Be Relevant: Targeting Customers with Product Recommendations Is Valuing Customers Is Keeping Customers

Using the behavioral data generated by product information and customer data (see the entire whitepaper), companies can:

  • Monitor product exposure for different customer segments
  • Gather information on how your visitors name, find, and filter products
  • Learn which requests, products, and categories best boost the conversion of your channel
  • Follow up customer behavior online after execution of print campaigns
  • Learn which changes in product data have the biggest impact on conversion

 

Informatica PIM Product Recommendation

Informatica PIM Product Recommendation

With cutting-edge product information management, you can guide and inspire your customers with instant, highly relevant content like real product recommendations. Doing so makes all the difference in boosting the quality of their shopping experience and, ultimately, their loyalty to your site.

One last thing: Have you already thought about tailoring other sales and marketing channels beyond e-commerce and e-mail? What is the next logical buy at a call center or at an on-site store?

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Posted in Master Data Management, PiM, Product Information Management, Retail, Uncategorized | Tagged , , , , , , , , , | Leave a comment