Omnichannel for Retailers: Product Data Consistency Is the Key
Are you struggling with data inconsistencies? Discover how you can streamline your product information management.
In today’s retail environment, where omnichannel experiences are the norm, Kristin Naragon, chief strategy officer at Akeneo, stresses the importance of effective data management. She offers valuable strategies to maintain consistent product data across all channels, which can lead to improved customer experiences and greater brand loyalty.
I feel like I’ve been writing about “omnichannel” for decades. And if you’re reading this, you probably have been struggling with it for the same amount of time. The “omni” part of that word is what continues to explode and make you come back searching for new ways to scale your efforts.
What used to be fairly straightforward — product discovery via search leads to a company website, which leads to a purchase — now seems overwhelmingly complex with product influencers, new social channels, the explosion of marketplaces, and the ever-evolving shifting of power between brands and distributors. According to a survey conducted by Manhattan, 84% of consumers now research online before visiting a store, primarily to search for the best deals (50% in 2023 versus 40% in 2022) as well as to learn more about a product or check stock availability.
What this new landscape means for retailers is an increased focus on product data consistency and management. As the omnichannel customer experience continues to get more complex, businesses that continue to try to find a solution through optimizing customer information and journeys are seeing diminishing returns on those investments.
The solution: Stop overengineering customer data and start investing in a true product experience strategy that creates a uniform experience across all channels and builds customer trust and loyalty over time.
The Difficulties of Data Governance
The era of big data came fast for many retailers who are struggling to keep up. With so many data sources originating from product information management, digital asset management, enterprise resource planning, customer relationship management, and much more, it can be a major challenge to keep all of that information organized.
Because of these disparate data sources, retailers can face a number of challenges that can affect everything from inventory management, sales forecasting, pricing and promotions, and personalization.
The problem with so much data is in how it’s handled. Data from different sources is often siloed in different systems and platforms, making it difficult for internal teams to analyze and make sense of the information in totality. Additional factors like human error — even the most skilled analysts make mistakes —, inaccurate or incomplete data, and more can lead to faulty decision-making and disconnected customer experiences.
If only a handful of brands were entering the omnichannel world, these blunders wouldn’t be such an issue. But providing a unified customer experience across channels has become table stakes for so many retailers, that the stakes have never been higher to get it right.
When Poor Data Maintenance Can Erode Customer Trust
Customers expect a connected brand experience throughout their buying journey, whether it’s from the store to online, from social media to Amazon, or any other of the countless permutations of that journey. This puts a lot of pressure on a brand to deliver a consistent experience with accurate information at every touchpoint.
One of the keys to consistency is maintaining accurate product information everywhere a customer encounters the product. Product details and specifications, photos and rich imagery, pricing, availability, and more need to be the same everywhere, or it can have dramatic consequences on customer confidence and satisfaction.
If a customer were to encounter a product through a social ad and then click through to a third-party seller, the information they discover should be the same as it is on the company website. In this day and age, customers are adept at researching products pre-purchase. If there are discrepancies between sites, that inconsistency may be the excuse a customer needs to abandon their purchase.
Similarly, suppose a customer goes through with a purchase, and the product they receive doesn’t live up to the expectations of the product pages that motivated the purchase in the first place. In that case, it can increase return rates and further damage brand credibility.
On the flip side, however, living up to the promise of a consistent customer experience throughout the omnichannel buying journey can bolster customer confidence, which can lead to loyalty, repeat purchases, and, perhaps most importantly, brand advocacy. In the age of social selling, building brand evangelists can take a brand to the next level. The most effective and efficient way to deliver on that is through a deliberate focus on the product information at all of those touch points. It’s something that you can control, unlike those customer journeys.
See More: How to Boost Customer Experience With Omnichannel Decisioning
Providing a Consistent Customer Experience
The keys to a consistent customer experience revolve around managing, organizing, and making sense of the massive amounts of data at a retailer’s disposal. This data pertains not only to creating a personalized customer experience but also to the actual product data itself, which can deliver on the contextual elements that customers demand and ensure uniformity across all the places where customers are researching.
Organizationally, retailers should implement robust data governance practices that encourage consistency and completeness. Standardized data entry forms with validation rules can help prevent faulty product information across channels. This policy change can be difficult for retailers with product portfolios with thousands of SKUs, but it can make a world of difference when good habits are set.
For example, Starbucks integrated its mobile rewards app with the in-store experience, allowing customers to seamlessly manage their accounts, make purchases, and earn rewards across multiple touchpoints. This omnichannel approach contributed to significant sales and revenue growth by simplifying the ordering and payment process. Now, mobile app payments make up 31% of the company’s total transactions, as Taylor Soper of GeekWire reported.
Beyond standardization, validation tools can help identify errors in product data and correct them before they are presented to customers. Many retailers are investing in AI and ML to automate validation processes to not only relieve their team members of tedious work but also reduce the risk of human error in product consistency.
Many of these modern tools also serve to unify omnichannel efforts. Specialty retailer Rural King implemented a PIM system to unify their omnichannel efforts and saw immediate returns on their investment.
“With omnichannel, Rural King revolutionized their digital business. Black Friday and following days were record-breaking sales days averaging a 36% increase,” said Jeremy Miller, Rural King’s Director of eCommerce.
For retailers, investing in large-scale systems like enterprise resource planning (ERP) systems, product information management (PIM) systems, product experience management (PXM), and master data management (MDM) platforms can serve to synthesize data from across channels. These systems can be integrated into in-store point-of-sale systems, CRMs, inventory management, marketing solutions and so much more to enable teams to accurately manage inventory and sales regardless of where customers are.
Beyond data silos, teams can also be siloed, leading to terrible inconsistencies. By encouraging cross-team collaboration, retailers can ensure a holistic vision and present that to customers. A PXM system is an accelerant for helping to encourage and reinforce this type of collaboration.
It’s a challenging time for retailers. Data dispersed across so many channels creates countless opportunities for inconsistencies. The challenges in synthesizing that data, however, are only matched by the potential when retailers get it right. Ensuring uniformity in customer experience can build trust, loyalty, and brand advocates for life.
MORE ON RETAIL DATA MANAGEMENT
- How PIM Can Untangle the Modern Customer Experience Web
- Product Information Management (PIM) + Digital Shelf Analytics: E-commerce’s Biggest Little Secret
- Data Engines Delivering the Value for Consumer Support: Refreshing Retail & Consumer Goods
- To Build Customer Trust, Prioritize Data Protection and Personalization
- How Zero-Party Data Can Take Your Customer Experience to The Next Level
