Product Data Must Haves

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How the customer is driving the need

to deliver coordinated product data

across every channel.

SALESWARP WHITE PAPER SERIES | PRODUCT INFORMATION MANAGEMENT

PRODUCT DATA MUST-HAVES

TODAY’S OMNI CHANNEL RETAILER

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SALESWARP WHITE PAPER SERIES | PRODUCT INFORMATION MANAGEMENTAGEMENT

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Today’s retail landscape has grown increasingly complex due to

the growing number of sales channels consumers are shopping on,

including in-store, online, mobile devices, tablets, even over the phone.

Consumer expectations have also changed with the evolution of an

omni channel experience, putting even more pressure on retailers to

help consumers make informed purchase decisions through coordinated

and rich product data presented across all sales channels.

With a product information management (PIM) solution, merchants can

source, optimize, and enrich product data to deliver a unified shopping

experience. A PIM solution is crucial to establishing consistency and

coordination across channels. These solutions create a single source of

data for all product information from all sources, including suppliers,

drop shippers, and manufacturers. The consolidation of all data into

one system allows a retailer to quickly and effectively list products

across any number of platforms and channels, all while reducing costs

and improving time to market.

In the past, only large retailers focused on PIM, and in most cases, used

a stand-alone PIM system. Today, even as the need for a modern PIM

solution has grown to encompass both large and small businesses,

retailers are slow to execute PIM efforts. New and veteran retailers

are still using antiquated processes such as spreadsheets and other

home-grown work-arounds to complete such a mission critical task

because that is how it has always been done.

INTRODUCTION


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The retail industry is growing and evolving rapidly, and merchants that don’t want to be

left behind need to adapt alongside it. Archaic tools and technology that hinder effi-

ciency in PIM efforts simply will not cut it and could wind up costing retailers in terms of

operational expenses, man hours and customer satisfaction.

One study conducted by Ventana Research found that almost half of retail organizations

struggle with maintaining a single version of product information across channels. This

illustrates a significant gap with current PIM processes compared to where many retailers

want to be. This could explain why as many as 33 percent

of polled eBusiness professionals told Forrester Research

that investment in a PIM solution would be a top priority

moving forward.

This white paper will discuss some of the challenges of

managing product data while exploring the ways merchants

can use a product information management system as a valuable strategic asset

for delivering clean, coordinated product information to every customer, across

every channel.

Almost 50% of retailers struggle

with maintaining a single version of

product information across channels.


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WHY CONSISTENT PRODUCT INFORMATION IS CRITICAL

With new trends such as showrooming and webrooming, it is clear consumers like to do

their research before completing a purchase. GE Capital Retail Bank’s second annual

Major Purchase Shopper Study found that as many as 81% of consumers head online to

do research before making a big purchase, a figure that has grown 20 percent year-over-

year. Of those consumers who complete their due diligence, as many as 41% of consumers

were more likely to go through with a purchase. The bottom line is that customers are

more willing to buy from a retailer if research has confirmed it is the right decision for

their needs, wants and price range.

Product information is the cornerstone of this research, serving as a base for all the

pre-purchase, knowledge-hunting that customers do. Consumers may wind up reading

reviews or asking friends and family members about products they’re interested in

somewhere down the line, but it all starts with

the product information displayed at every

customer touch point. Because product data

plays such a large role in the decision-making

process, retailers must manage and monitor

every piece of product data that is pushed

online and in-store.

As a result of accurate, coordinated product data spread across sales channels, retailers

will improve the customer experience, reduce return rates, and improve sales potential.

“41% of consumers were more likely

to go through with a purchase after

completing their due diligence.”


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PRODUCT INFORMATION CHALLENGES

Despite the importance of PIM in successful retail and eCommerce operations, many

retailers have found it difficult to manage effectively. Leveraging multiple sales channels,

drop shippers, suppliers, and even using physical stores as fulfillment centers has become

more commonplace in the modern retail environment. This means that many merchants

are tasked with constantly managing product information across a variety of sources and

sales channels. Failure to keep data updated could result in a loss of sales, while inaccu-

rate information could damage customer satisfaction and the perception of a brand.

There are a number of challenges retailers often face when trying to improve product

management. Here are some of the biggest issues:

1. PIM is time consuming and complex

If retailers are selling across a variety of channels, they need to ensure all of their

product information is coordinated and accurate. In

the retail space, time is money, and retailers need

to be able to source, standardize, and publish data

as quickly as possible to expedite a product’s time

to market.

Retailers can have tens of suppliers and even more

drop shippers, even as a small business. Sourcing

product data from all these different locations often results in inconsistent

formatting, incomplete fields and, in many cases, duplication of data.

Worst of all, it typically involves a very time-consuming, manual process of

cleaning the product data and preparing any additional information.

2. Catering information to third-party marketplaces

Online marketplaces such as Amazon and eBay attract millions of shoppers every month,

according to data from comScore, making them a highly valuable asset to many retailers.

However, in order to sell on these marketplaces, there are requirements that differ from

how retailers sell on their own website. Modifying product data for these requirements and

managing store-specific sets of data can become a very complex and time-consuming

process.

In the retail space, time is money,

and retailers need to be able to

source, standardize, and publish

data as quickly as possible to

expedite a product’s time to market.


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3. Discrepancies can be game-changing

Discrepancies with product information between channels can cause a lot of confusion

for both customers and retailers. Questions about products can lead to more calls (and

thus, more work) for customer service representatives and negatively impact site-browsing

behavior, not to mention customer loyalty. This is especially apparent for images, product

attributes and pricing across offline and online channels. A customer does not want to go

in store to find a bag that isn’t quite as brown as the image online, is $50 more expensive

or isn’t even in-stock.

4. Dealing with multiple back-end solutions

Merchants without a centralized source of data often

find their product data dispersed across multiple

systems that have been patched together. This

causes retailers to lose track of their product data

and increases the likelihood of duplication and in-

consistencies. Having a greater number of SKUs or

a specialized catalog only magnifies this obstacle.

5. Dealing with legacy solutions

The aforementioned problem is even more pressing if merchants are using manual

processes or legacy systems not specifically designed for the retail space. For example,

some merchants opt to use spreadsheet software (such as Microsoft Excel or Access),

which doesn’t provide enough visibility across departments and is prone to input mistakes.

Conversely, legacy systems are often outdated and have complicated APIs or interface

requirements that make even common tasks like managing product kits and configurable

products quite difficult.

The goal of PIM is to instill trust,

confidence and brand loyalty within

customers by delivering the omni

channel experience they expect.


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UNDERSTANDING PIM WORKFLOW

In an ideal world, where merchants aren’t hindered by time, resources and inflexible

legacy solutions, what would PIM look like?

The goal of PIM is to instill trust, confidence and brand loyalty within customers by

delivering the omni channel experience they expect. Accurate and centralized product

information is core to achieving that objective. From a business perspective, better

product information management also results in reduced call center activity, improved

sales and product margins, a reduction in the

number of systems and resources managing

product data, increased efficiencies, market

differentiation and brand loyalty.

To achieve those goals, retailers have a few

specific needs that must be fulfilled, both with

their product data and their PIM solutions. Product data must be informative, complete,

accurate and rich in content. In particular, it’s important to have extensive product

information that includes:

• Unique descriptions

• Quality images

• Inventory counts

• Content optimized for search engines

• Customer reviews

• Complete list of attributes

• FAQs

• Related products

33% of professionals believe an

investment in a PIM solution is

a top priority.


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This data may be pulled from a content generator, consolidated from multiple suppliers,

or optimized by an in-house merchandising team.

With a PIM system, retailers gain greater control over their information, helping them to

centralize data from multiple suppliers and automate the process of standardizing and

updating catalogs. Regardless of the channel through which an item is being sold, a PIM

will be central to modifying and adding new products.

One of the greatest assets a retailer receives with a PIM system is automation.

Automation empowers retailers to quickly update a product catalog with new product

data received from suppliers and distributors. Some PIM systems take it one step further,

using rules and mapping tools to automatically clean up and standardize the imported

product data. When product information is automated, merchandising teams become

more efficient and are able to quickly proliferate product

feeds to everywhere they sell online, which can be a

significant advantage when it comes to improving time

to market and reaching more customers.

One of the greatest assets

a retailer receives with a

PIM system is automation.


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WHY PIM SOLUTIONS ARE A LYNCHPIN FOR SUCCESSFUL PRODUCT USAGE

If product information plays such a pivotal role in selling products and improving

the customer shopping experience, then PIM solutions are critical to successfully

utilizing all available data. Currently, many retailers either don’t have an effective

PIM system or use a legacy solution that cannot keep up with the demands of modern

retail. Outdated and archaic systems in particular can be difficult to move on from,

as many different operations are typically tied

to them.

Still, PIM represents a huge opportunity for

retailers to really improve the way they operate

and gain a competitive advantage over their

competitors. PIM tools will not only help

merchants create a rich product catalog, it

will also maximize their exposure in new markets.

As Ventana Research found, PIM systems helped nearly half of retail organizations

eliminate errors pertaining to their product information, while 44 percent said their

dedicated PIM solution improved sales potential. Moving away from legacy solutions

or tools that aren’t specifically designed to handle the product information needs of

modern retailers can be a big step forward for many merchants.

“PIM software has automated processes which eliminate mistakes made in managing

PIM data,” explained Mark Smith, the chief executive officer and chief research officer

at Ventana. “Organizations that combine PIM with master data management systems

seamlessly across all data domains will gain significant benefits from efficiency to

improving the customer experience.”

PIM systems contribute to data transfer in two ways: managing imported data and

managing exported data.

PIM systems helped nearly 50% of

retailers eliminate errors.

44% of retailers said their dedicated

PIM solution improved sales potential.


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Organizations that combine PIM with

master data management systems

seamlessly across all data domains

will gain significant benefits from

efficiency to improve the customer

experience.

IMPORTING DATA

A PIM system should be used for importing data from supplier product feeds. This

includes setting up connections through an application-programming interface (API).

Scalability is key here for merchants looking to sell a substantial number of new items,

and the right API allows merchants to add new products quickly.

EXPORTING DATA

Exporting data, on the other hand, refers to store product feeds. An API can be used to

connect a PIM system to multiple sales channels, regardless of whether they are using

a third-party marketplace, a POS system or their

own eCommerce platform. Marketplaces and

online stores have very different requirements,

and the right PIM ensures that product information

is manipulated for the respective platform.

When referring specifically to exporting data,

timeliness should be a priority. If time-sensitive

data isn’t updated as soon as possible, retailers

may be misleading customers, in terms of price or

inventory available, which contributes to a negative shopping experience. A PIM system

helps eliminate much of the complexities that cause delay or a lag in the listing process,

ensuring retailers can quickly push information live to their sales channels.


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PIM IS A COMPETITIVE NECESSITY

A dedicated PIM solution that helps retailers deliver coordinated and relevant informa-

tion to customers, regardless of channel, is a competitive necessity in the current retail

climate. A centralized database creates a single source of truth for all product data,

ensuring a coordinated delivery across sales channels. This allows merchants to improve

merchandising and expedite the content publishing process while eliminating errors.

Although merchants have traditionally found other ways to manage their product data,

as the retail industry continues to grow more competitive and expansive, retailers need

more efficient and integrated solutions to help organize product information.

Every retailer is different, and as such, they have a variety

of needs. Fortunately, there are a number of PIM solutions

available that can help every merchant address the issues

they face.

TRADITIONAL PIM

A traditional PIM is usually a stand-alone solution that integrates with other retail

software. Many larger retailers choose to go this route as they have specific and

comprehensive content and product management needs and these solutions

usually offer more features.

A dedicated PIM solution is

a competitive necessity in

the current retail climate.


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RETAIL MANAGEMENT SYSTEM WITH BUILT-IN PIM

An increasingly-available alternative is a complete commerce management system that

contains a built-in PIM solution. SalesWarp is such a solution. The advantages to using a

complete management software is that it provides the necessary product management

functionality today’s multi-channel retailers need, while allowing data to flow seamlessly

between departments, such as merchandising, customer service, warehouse and

in-store, improving transparency and access

for the entire retail business. A commerce

management system also provides a whole suite

of additional tools to manage orders, inventory,

customers, suppliers and sales channels.

A PIM system can go a long way in not only

improving the way companies handle their own

internal operations, but also in promoting transparency and clarity among consumers,

who rely on this information to make purchasing decisions. Retailers should consider

implementing a PIM solution as one of their next priorities as they look to expand across

multiple channels.

A PIM system promotes transparency

and clarity among consumers, who

rely on this information to make

purchasing decisions.

To learn how SalesWarp can help your retail

organization, visit SALESWARP.com.

ABOUT SALESWARP

SALESWARP is a centralized commerce management system for responsive retail. SalesWarp breaks down

the barriers in a multi-channel commerce operation to manage all product, inventory, order, fulfillment,

accounting and customer data from one system. By eliminating operational silos, SalesWarp provides

retailers with seamless data flow and advanced intelligence that results in more effective decision-making

for a profitable, streamlined and responsive retail business. For more information, visit SALESWARP.com.

Documents

Product Data Must Haves