How Product Data Can Increase Your ROI

Data is the new gold.  We all know this.  But how can you use data to fully optimize your business? 

You have data on customers, employees, processes and especially your products. We’ve already talked about how you can use your customer data for personalization and to increase sales in an earlier blog post in this series. But what if we told you that your product data could help you just as much, and maybe even more? That you could use it to reduce costs, speed time-to-market and future-proof your business model?

Getting a Grip on Your Product Data

Before you can start harnessing the power of your product data, you have to first organize it. When we talk to a company about their data, we notice that it’s often scattered throughout the whole organization. Person A, for example, has an Excel file, Department B has built something in their ERP, while person C has yet another Excel file… But which system contains the latest versions?

That’s where Product Information Management systems or PIM will save the day. Simply put, these databases are designed to hold, manage and distribute product data across all channels and departments. Most connect to a CMS and publish data in your web shop. Some also connect to a print plugin that makes generating catalogues much easier.  All ensuring that everyone is on the same page when it comes to your product specifications.

Shortening Your Time-To-Market with a PIM

Robust PIM systems come with a portal that is built specifically for your suppliers to onboard their data. If you’re a retailer or wholesaler, this will be a familiar scenario: One of the brands that you offer releases a new product and you plan on selling it through your online store. How long does this process currently take you?

With a PIM system, the supplier could already fill in most of their specifications in the system themselves. Once one of your employees verifies the data and, if needed, makes some adjustments, it’s uploaded, then you’re good to go. Of course, you don’t have to worry about suppliers seeing things they shouldn’t see. Their view is restricted to the data of their own products.

This means that you will only have to spend a few minutes to make sure that a product is ready to be published on your store. Additionally, edits can be done so much faster than before. In roughly eight minutes a product can be updated, processed and published online, which is roughly 30% shorter than it is for most companies. In a time where speed is of utmost importance, this could give you a significant advantage against your competitors.

Catching the Wave of the Long Tail

However, an increased speed isn’t the only advantage. You can finally make use of what’s called “the long tail of the Internet”. In essence, companies that adopt a long tail strategy dramatically increase their product assortment through niche products. These products then come with higher margins. Since the cost of adding them to your online  store is much lower than they used to be, it’s a good investment – even if you don’t sell a lot.

Since these niche items often don’t get a lot of traffic, they don’t tend to receive much love and care from the product data teams. Other products that drive more traffic will always be a priority. However, now that the suppliers can do a part of that work for you, it’s far easier to manage the quality of the data and imagery that’s being displayed.

Saving Money on Returns

Returns are an enormous source of cost for many companies. According to Trusted Shops, fashion has to deal with a return rate of up to 30%. The logistical costs and man-hours that have to be invested to handle the entire return process can quickly start to eat into your revenue.

The best solution for your problems with returns would be to offer higher-quality data on your product pages. Through a PIM system, your data would be more consistent, complete and contain less errors. These three factors would immensely decrease your amount of returns.

Are you curious as to what else product data and PIM can do for your business? Then sign up for the joint webinar between Osudio and Contentserv! Contentserv is a worldwide leading software provider for PIM solutions

In our webinar “Embrace product experience to win in Fast Moving Consumer Goods”, we will talk about how you can leverage your product data, not only to drive more revenue, but also to provide tailored experiences for your customers.

 

Sign up for our webinar: “Embrace Product Experience to Win in FMCG”

 

This blog was written by Brecht Beertens from our partner Osudio and is part of a four-part series of blogs focusing on the FMCG market in 2019.

Osudio

We started with designing and building websites in the 90’s. Over the years, we grew into a full service digital agency, focusing on ebusiness. Since 2017, we are part of the SQLI group.

Our team consists of entrepreneurial, inspirational and driven people who are not afraid of challenges. With more than 200 employees, we operate internationally and implement business-transforming projects from our offices in Belgium (Diepenbeek), Germany (Lünen, Stuttgart and Berlin), the Netherlands (Eindhoven and Amsterdam), Spain (Valencia), Switzerland (Zurich) and the Nordics (Copenhagen, Malmö).

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