The Informed Purchase Journey

How product information can dramatically alter the customers buying experience and power sales in retail

Introduction Only a few years ago, when we wanted to buy something, wed consult brochures and catalogs or look for a knowledgeable salesperson. Now, the way we buy has changed beyond recognition. And it keeps being reinvented.

First we went online. The internet was a revolution in transparency. With a few clicks, we now compare retailers, prices, products, and features. We do our own research and have become super smart about what to buy, who to buy from, and how much to pay.

Then things got social. Today, were routinely seeking other peoples opinions on products were excited about. We take pictures, we review and rate and publicly share our feelings, advice, photos, and videos about everything from hotels to toothpaste.

Today, were mobile. Now all that information and all those social recommendations are in our pockets. And shopping has once again transformed.

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Introduction

The power is in your customers hands. Put these trends together and youve got a completely new and enormously demanding consumer. The way we sell has got to change, too.

The increasing need for product information. Turns out that one thing hasnt really changed all that much: before people buy, they have a million questions. And if you cant answer their questions with clear, comprehensive, and up-to-date product information, photos, videos, and reviews youre not going to make the sale. No matter what youre selling, or in which channel.

You want to sell the product make sure you bring the data. This is not going to change: new prospects, existing customers, retailers, bloggers, and tweeters are having conversations about the products youre selling. Your challenge is to join in and become the most reliable and attractive source of information there is. So your customers wont need to go anywhere else.
This ebook is about harnessing the power of product information throughout the new purchase journey. We hope it helps you discover ways to manage your information actively, to package it well, and to leverage its power to attract and convert shoppers.

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This is the new purchase journey Lets take a closer look at the way shoppers buy today. How have consumer behaviors and the role of product information changed since the advent of chunky bandwidths and social buying? The new purchase journey looks like this:
Shopper-controlled The days of the single visit to a trusted store are gone. Todays shoppers are in control. Theyre hugely aware of their power as consumers, and theyre exercising it freely. Multichannel Buyers arent using one specific channel anymore. Theyre shopping in stores, the web, on mobile apps, in social channels, and from catalogs simultaneously. And new channels are opening up all the time. Social-powered Purchasing decisions are crowd-informed: recommendations and reviews guide consumers and validate their choices every step of the way. Search-guided Shoppers used to be dependent on a few sources of information. Now theres Google. So they go and hunt for answers themselves.

So more than anything else, the new purchase journey is an individual learning journey, led by empowered and info-hungry shoppers. And make no mistake about it: these confident decision-makers will punish vendors if theyre being starved for information.

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The #1 cause of shoppingcart abandonment is lack of product information

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It just makes sense. We click away from shopping sites for three reasons:  Were just not sure the product is right for us  Were not quite sure the seller is the best source for the product  Were not confident we have all the information we need

Product information is crucial to business success because it injects desire and confidence the fuel of every commerce engine. Theres no limit to what we may want to know about a product and any question left unanswered will inhibit purchase.

Here are six ways to give your customers what theyre looking for so theyll buy from you.

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Six ways to actively manage your product information and help your customers buy from you

Provide consistent and up-to-date data across all channels.

Provide consistent and up-to-date data across all channels

A 2011 Google study shows that, on average, across So by the time consumers first get in touch with you, theyre already armed with heaps all categories, of product knowledge. shoppers use 10.4 sources of information to make a decision. 10.8 9.8
2
Key: Category Purchased Number of sources used by the typical shopper Banking Over-TheCounter Health

This includes, among other things, watching TV ads, looking up manufacturer websites, talking to family and friends, reading reviews, and checking Amazon.

18.2
Automotive

10.2
Travel

5.8
Quick-Serve Restuarants

Consumer Packaged Goods: Grocery

7.3

Technology (Consumer Electronics)

14.8
123 456

14.7
Voters

Consumer Packaged Goods: Health/Beauty/Personal Care

1 1.7
Insurance

8.6
Credit Card

8.9
Investment

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Provide consistent and up-to-date data across all channels

Research channel purchase channel

95% of smartphone users say theyve searched for local information. 90% of those users take action within 24 hours. 61% of smartphone users called a business after searching 59% visited a local business 5 after searching.

In fact, 61% of retail managers believe that shoppers are better connected to product information than in-store 3 associates. Google has coined a term for this elusive but critical stage of a shoppers self-education: ZMOT 4 or Zero Moment of Truth. As well as their very own information sources, shoppers will also have preferred channels for buying. It may be a mix of channels, depending on the type of product, availability, urgency, time of day, etc. A purchase may start with an online search but end up being completed in the local store.

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Provide consistent and up-to-date data across all channels

 or vendors, F this means two things:

1. Y  ou need an omnichannel strategy (if you havent already got one).  A customer who didnt buy in one channel may well be won over in another: different channels will feed each other. Studies have shown that smartphone users do mobile research but visit a local business; and even old-fashioned print catalogs 6 lead to a 30% boost in online sales.  Multichannel shoppers will spend, on average, 15 percent to 30 percent more than someone using just one channel  and omnichannel shoppers outspend 7 multichannel shoppers by over 20 percent.

2. I ts crucial to deliver the right product information in every channel. The biggest challenge for most retailers is consistency (another is completeness of information well talk about this below). Very often, information in your stores, ecommerce site, mobile app, and print catalog just dont match up. You may well choose to share different information in each channel but it all needs to be consistent and appropriate.

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Provide consistent and up-to-date data across all channels

Lack of consistency is no minor oversight.

Consumers used to turn to established brands because they embodied reliable quality. In an age where quality is validated by ratings and reviews, its consistent product information that signals reliability. It stands for a single point of truth, a unified customer experience, and better brand recognition and it informs social recommendations and loyalty.

So whichever channels you serve, dont send confusing messages: you may not be displaying the same product attributes everywhere, but do make sure they are consistent across all channels.

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Provide consistent and up-to-date data across all channels

Action points for consistent and reliable data

 Get rid of information silos. Create one authoritative system of record. Get everyone to use that one central data repository.  Become truly omnichannel. Structure your data so its universally usable not channel-specific.  Make sure your product information is always up-to-date. Collaborate with all stakeholders (suppliers, product managers, shipping specialists, etc.) to ensure your product information management (PIM) system always holds the most accurate and recent information. Automatic synchronization across all channels is key.

 Ensure access to centralized product data for anyone who may be in touch with customers. Your sales and support people should know at least as much as your most informed prospect.  Connect your channels and increase convenience for your customers. For instance, offer a ship-to-store option or a local availability check.

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Offer product info in the right place, at the right time

Offer product info in the right place, at the right time

Time-to-market is one of the most important retail industry KPIs.

For vendors, this effectively means time-toshop: the availability of a product plus the time it takes to collect all relevant product information so you can display it to the customer (product introduction time). The biggest threat is not the competition its your own time-consuming, internal processes. We call this Shelf Lag, and its a big inhibitor of retailer profits. Heres why: You cant sell what you cant display. In many ways, your data is your product. And with ever-shorter sales cycles, you cant afford to be wasting time consolidating your data. You need to have it ready when your shoppers are ready to buy because if you fail to manage your product information, youll fail to sell.

Be ready to spin up new channels. Weve said it before, but its important to stress this: when consumers want a hot item, they want it now, and through whichever channel they prefer. That means your product information needs to be universal and flexible enough to wriggle itself into any shape and mold - including new channels that keep opening up (some that you may not have heard about yet). Watch your margins. Its sad but its true: you need those top sellers for the number of sales, but the high margins are elsewhere. Category managers everywhere are realizing that the profits are in niche, long tail products that sell at higher margins. Going with an Endless Aisle strategy, however, means an explosion in SKUs and attributes - often a problem for IT infrastructure, as well as supplier logistics.

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Offer product info in the right place, at the right time

Action points for faster time-to-shop

 Use a flexible, centralized data repository for product information that all channels can tap into. So once the information is in the database, its also on the website/the smartphone/ the next print brochure.  Use a supplier/ vendor/ collaboration portal that enables product information collaboration between suppliers and retailers. It will save precious time and manpower.

 Use an automated validation tool. This means that, for instance, theres a rule in place to make sure green doesnt appear under size. That saves A LOT of time.  Develop an endless aisle (long-tail) strategy. Once a flexible product information management system is in place, it will enable you to handle large numbers of SKUs and attributes.

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Make your data sets as complete as possible

Make your data sets as complete as possible

Nine out of ten shopping cart abandonments are caused by poor product information.

A third of the people who click away say they didnt have enough information to 8 make a purchase decision. Even more shockingly: 40% of all fashion purchases are returned, and in electronics its 15%. With an average 9 return cost per package of $20, profits are melting away. Buyers return items because they dont meet their expectations. Some even anticipate disappointment and order two or more variations of a product because they just dont feel confident in their decision. Theres a powerful way to minimize returns: by answering every question buyers could possibly have about sizes, dimensions, materials, compatibility, etc. The more complete your product information, the more likely it is that shoppers choose wisely (so they dont have to return products).

Studies show that comprehensive product pages perform best. Buyers want 360degree views that tell them as much about a given product as possible. Heres a list of information assets that help buyers decide whether a product is right for them: Good-quality images  Seeing a selected product in the color of choice  Seeing a product on a model/ in use/ in a room setting Alternative views A zoom function  Peer rating/reviews (such as comes up big for a size 4) Similar products

Better product information not only means more sales. It means better sales with fewer returns.

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Make your data sets as complete as possible

Action points for more complete product data

 Identify which descriptors the master record needs for each category (weight, size, shape, color, material, etc.).  Define a person or team who is responsible for data quality of that master record.  Use a PIM tool that can handle different data sources and formats, so you can pull the best information into your system (e.g., from existing data pools and industry standards).  Automate your data quality processes. Dont waste time manually entering and checking data sets.

Invest manpower in completing  product information.  Involve external sources to improve product data, and outsource work to suppliers, vendors, and translators.  Think about providing an online chat function to answer buyer questions. One in five consumers say they actually prefer online customer service (like chat, video chat, and email) to phone calls 10 or in-person consultations.

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Make your data unique and rich

Make your data unique and rich

When everybodys offering the same product at the same or a similar price, the quality and richness of your product information becomes an important differentiator.

But as more and more vendors work from the same manufacturer data, that differentiation disappears unless you enrich your (consistent, up-to-date, reliable, and complete) product data to make it more compelling and attractive. Many companies still think of product data as neutral. Thats a mistake.
Which dress would you rather buy? A 186 C or a strawberry red stunner thats perfect for Valentines Day? Or imagine youre interested in a new bike: youve identified the one you want and youre eager for more information that will support your decision. Isnt it then disappointing to find the same manufacturer-supplied product description and specification list on every vendors website?

To the consumer, generic product data signals that its just another bike. What you should be signaling is that you inhabit your customers world and that your brand has a point of view. That youre just as excited about the bike as they are, and that you know exactly what makes it special and why they should buy it from you. Product data with an emotional appeal is a unique chance to engage customers and win them over. Enriching your raw data with branded, proprietary descriptions, images, and video then deploying this asset across all channels will help enrich the customer experience everywhere. Other vendors may be selling exactly the same product but they wont be doing it with your style, clarity, and brand spin. And thats where brand power kicks in.

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Make your data unique and rich

Action points for more appealing product data

 Use media assets with a strong emotional appeal wherever you can. Images and videos that show the product in use greatly boost sales (see our sidebar Videos sell: the numbers.)  Use a digital asset management (DAM) system to manage your media assets for use across all channels.  Infuse copy and descriptive data with branded language - dont just copy that supplier marketing text. Make it rich, proprietary, creative, and emotional.  Provide target-group-specific product descriptions for each customer segment.

Videos sell the numbers  Using video demos of items on product pages increased sales for Zappos by between 6% and 30%.  Shoppers who viewed video on Stacks and Stacks product pages were 144% more likely to add to cart than other shoppers. Shoeline.com improved the conversion rate by  44% for product pages containing videos.  On Ice.com, the conversion rate for shoppers viewing video on product pages increased by 400%, while return rates dropped from 12% to 9%. Videos on the simplypiste.com product  pages increased conversion rates by 25%, as well as leading to a reduction in the number of returns.11

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Connect your data for maximum effectiveness

Connect your data for maximum effectiveness

Weve talked about the importance of presenting a single face across channels.

Todays buyers expect vendors to know about them: their past purchases, their preferences, their devices and they expect your communications to reflect that knowledge. Thats why its so important to use everything you know about your customer, your product, and your supply chain to maximize the value of data.

A master data management (MDM) system connects your product data with valuable information found in other applications such as CRM, ERP, Marketing Automation and with supplier and contextual data like location and device. MDM can help you answer questions such as:  Which products has this customer purchased?  Which channels were the products purchased from? Who were they purchased for?  Which employees were involved in these sales?  Which suppliers provided the products?

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Connect your data for maximum effectiveness

The benefits of connecting your product data with just your customer data are immense:

 Make better recommendations by connecting what you know about each customer with what you know about every product.  Improve the omnichannel customer experience by getting the right product information to the right place at the right time for each customer.  Target product information better according to where the customer is (in your store?) and what device theyre holding.

 Drive up margins by suggesting the relevant products with the best margins, or stock availability, or to earn supplier volume discounts.  Improve your supplier performance by connecting your supplier relationship management data with the product information they supply.

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Connect your data for maximum effectiveness

 ction points for A connected data

 Integrate your PIM data: deploy MDM to connect your product data with other data repositories: With CRM for cross-selling and upselling opportunities, personalization and relevant recommendations With supplier data to drive better supplier relationships With ERP to inject the product offers best-placed to make you money With contextual data to target product information by device, location, weather, language, etc.

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Embrace social power

Embrace social power

Its a fact: happy customers generate more customers.

Thats why ratings and reviews are such powerful conversion drivers and such a vital part of any product information management initiative. Customers actively look for recommendations before they buy. Heres why you should embrace that:  Most reviews are good: the worldwide average for product reviews is 4.3 out of 5.  80% of reviews on the site of a given retailer are written by the top 20% of their customers (by lifetime value).  Users pay attention to social signals like reviews. Listings that averaged three or more stars in reviews took 41 out of 47 clicks.  The volume of reviews matters. 29 of 47 clicks went to listings that had at least four reviews.

But what about the bad reviews? Yes, youll get those, too. Even water and gravity have haters. And seriously, would you trust a product that only got raves and thumbsups? Negative reviews signal credibility and authenticity. They show youre not hiding anything. And sometimes, they say more about the reviewer than your product. When you integrate ratings and reviews with your product data more commonly called product information management (PIM) data you ensure theyre available across all channels, when and where theyre most needed.

After all, credible consumer opinion about a product is a vital piece of information for any shopper.

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Embrace social power

Action points to leverage social data

 Integrate customer reviews (e.g. stars) with your product information and PIM platform.  Make it easy for people to publish reviews to networks like Facebook and Twitter: then collect them for your PIM.  Display ratings & reviews alongside product information on product pages, category pages and during checkout.

 Let online reviews feed your other channels: Put product ratings and reviews on packaging Use digital signage for real-time review feeds in-store Use pull-out quotes from reviews in print catalogs.

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Conclusion Product information is the fuel of the new, informed purchase journey.

If weve convinced you of one thing in this eBook, we hope its this: product information is at the center of the modern purchase journey. Faster markets, more channels, and seriously educated customers demand and deserve comprehensive, accurate, rich, and up-to-date product information.

Getting it right opens enormous opportunities as you embrace the omnichannel world. And mastering your product data makes it easy to extend your product assortment and create the high-margin Endless Aisle. In short, investing in PIM processes pays dividends. In customer experience. In revenues. In process efficiencies. And in fewer product returns.

Thats what the PIM-powered purchase journey is all about.

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A PIM platform to support your processes PIM is a process and a discipline but its also a technology. Here are the benefits of deploying the right PIM solution, as part of your wider data strategy:
Customer satisfaction: 71 % of retailers using a PIM solution reported increasing customer satisfaction and customer loyalty due to high12 quality service and information. Conversion rates: Retailers employing a PIM system reported higher margins & conversion rates in e-commerce. There is also evidence of increased profits through smart cross- and 13 up-selling. Data quality: Organizations with MDM or PIM systems reported a 17 % increase in the accuracy of their product master data, over 3.4 times the improvement shown by companies without 14 these tools. More efficient internal processes:  Faster product launches across all channels Instant updating across  all channels Streamlined integration of suppliers data  Optimized localization and reduced costs for translations Faster onboarding of suppliers Easy search and find  Time savings due to automated data entry
In an omnichannel world, there is no going back to spreadsheets, information silos, and manual data entry. Talk to us about how better PIM can transform your own merchandising, marketing, ecommerce, and mobile initiatives.

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For the hard facts about the business benefits of a PIM system, download our whitepaper: The Return on Investment (ROI) of Product Data

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This ebook was brought to you by Informatica

We make the worlds most complete PIM solution. Its part of a Master Data Management portfolio thats changing the world, one company at a time. Some of the worlds biggest, most successful, and most agile retailers and manufacturers rely on our PIM solution and our experts in PIM deployment.

Lets talk.
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Sources
1. http://www.shopify.com/blog/8484093-why-onlineretailers-are-losing-67-45-of-sales-and-what-to-doabout-it#axzz2tZvCkp00 2. Google ZMOT Handbook 2012, http://www.thinkwithgoogle. com/research-studies/2011-winning-zmot-ebook.html 3. Motorola Holiday Shopping Study 2012, http://www. motorolasolutions.com/web/Business/Products/_Documents/ White_Paper/Static_Files/MT_White_Paper.pdf 4. http://www.motorolasolutions.com/web/Business/_ Documents/static%20files/2011_Holiday_Shopping_Survey_ North-America.pdf 5. Google ZMOT Handbook 2012, p. 20, http://www.think withgoogle.com/research-studies/2012-zmot-handbook.html 6. ECC multichannel survey, http://www.ecckoeln.de/News/ Bei-knapp-jedem-3.-Kauf-in-Online-Shops-findet-vorab-eineInform 7. (http://www.retailonlineintegration.com/article/the-omnichannelshopper-anytime-anyplace-anywhere/1#) 8. Internet World Business Magazine 2011 9. http://www.retourenforschung.de/definition_statistikenretouren-deutschland.html 10. Google ZMOT Handbook 2012, p.48, http://www. think withgoogle.com/research-studies/ 2012-zmot-handbook.html 11. Econsultancy Ecommerce Best Practice Compendium, http://econsultancy.com/reports/ecommerce-bestpractice-compendium 12. Informatica PIM ROI of Product Data for Multichannel Commerce, http://www.informatica.com/Images/02552_ informatica-pim-roi-product-data_wp_en-US.pdf 13. Aberdeen Group, The Business Value of Product Data, p. 4, http://www.aberdeen.com/Aberdeen-Library/6533/RAmaster-data-management.aspx 14. Aberdeen Group, The Business Value of Product Data, p. 3, http://www.aberdeen.com/Aberdeen-Library/6533/RAmaster-data-management.aspx

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