DATA is the fuel that every retailer requires in our digital world today. Product data plays a very important role, from improving customer satisfaction to gaining more sales and increasing brand recognition. But, adjusting to the new digital world, which has its own rules and different modes of engagement, may not be easy for online retailers. With consumers preferring the comfort of digital shopping more than anything else, online retailers must understand what is required to fuel their ecommerce sales.
One might quickly point to product data and say product data is “the” prime thing required right now for any ecommerce retailer. Although online product data is crucial as it helps consumers make informed decisions, not all Data is good. Product data must be accurate and insightful to make meaningful decisions.
For instance, accurate product data helps the retailer map each step of the customer journey precisely, right from what kind of products needs to be listed during which season, who is most likely to buy from you, what kind of information is most vital etc. Accurate product data will increase customer acquisition and also overall sales. In comparison, inaccurate data can directly affect the brand value of your company and your product.
How important is Data for the ecommerce industry?
Ecommerce retailers have to deal with a large amount of product data, including product descriptions, attributes, and inventory. As an ecommerce retailer, it is vital for you to get your products to market as soon as possible. You are losing money when you have products sitting in your inventory as you try and apply the right product data. Your competitor may beat you as you slowly put together product data for your listing. Also, without reliable Data, how do you know how well your whole business is performing? All hell can break loose if any product data is wrong or mismatches with the entire catalog data.
Leveraging commercial data to drive your ecommerce business has become the gold standard. Product data needs to be at the heart of your ecommerce strategy, and If retailers want to be truly multichannel, they need to have access to and control their product data.
In short, they need to manage their product data.
What is Product Data Management?
In very simple terms, Product Data Management is a system of managing essential data and information associated with a product. These data can include product specifications, pricing details, display images, product descriptions, category details, etc.
Product data, especially in ecommerce, holds a very high value. Good product data management software helps in the smooth management of various product data.
The centralized nature of product data management systems enables the user to work with ease too. The product data management system helps extract the best product data from several sources, enabling you to be present across various channels and marketplaces.
Benefits of High-Quality product data for ecommerce
Product data and product information is the persuasive copy that sells your product. Online product data needs to be rich, accurate, and relevant to engage customers better and boost conversions. It may sound like a broken record playing over again, but that is how important online product data is for ecommerce.
Here are some of the benefits that ecommerce retailers can get from product data management.
Improved efficiency with better organization
Product data is usually scattered across many places. A product data management system provides a centralized repository and helps organize data in one place. Organizing the product data is an important aspect of the world of ecommerce. A customer can search for a product at any channel or marketplace, and it is up to us to make ourselves available at all those different places. Each channel has its rules and guidelines for displaying product content and maintaining product data. Keeping the product data organized will help in smooth business operations and reduce redundancies. Structuring, labeling, and formatting the product data make the time to market faster and help you stay ahead of your competition always.
Increased productivity through Automation
With the world moving ever so close to achieving 100% automation, accurate product data is vital in increasing overall sales. An automated setup can ensure an increase in the business’s operation speed and reduce the number of errors caused by manual labor. This will ultimately lead to better productivity. A sound product data management system ensures that the product catalog automatically updates the latest information and images. Even further, a good Product Data Management system fetches the best product data from across markets and channels and makes sure that our product is on par with the market standards.
Better brand recognition with improved customer satisfaction
One thing that is overlooked when it comes to having accurate product data is customer satisfaction. The general thumb rule in any industry, let alone ecommerce is that the happier the customer, the better the business profits. Accurate product data plays a direct role in making sure that the customer is happy and satisfied.
For example, consider a customer who wants to buy a mobile phone and visit a marketplace like Amazon. The amount of competition that is already there on Amazon is pretty high, and for your product to stand out, you must produce an immersive product catalog. If your product catalog doesn’t have all the necessary information, it creates a sense of doubt in the user’s mind. If the user wants to buy a mobile with 6 GB of RAM, but you offer only 4 GB of RAM, this information must be available to the user. After purchasing the product, if they don’t find what they are looking for, it creates a sense of frustration and distrust in their mind when it comes to your product. Your brand loses its value, and this has a direct effect on your sales. It is always essential to ensure that we deliver what the customer needs, and accurate product data alone can help.
Faster time to market and great sales returns
One of the prime advantages of having accurate and precise product data is the ability to bring your products to market faster. Having precise product data allows the product data management system to easily syndicate your product across channels and marketplaces, meaning you can sell simultaneously on multiple channels. The more channels you sell on, the more sales you are bound to make, and with increased sales, the profit is bound to increase. Furthermore, accurate product data improves the overall business productivity and enables you to get your products listed online much faster. This helps you spend more time on improving your business
Although product data is the core behind the success of ecommerce businesses these days, managing it is as important. A good product data management software like PIMworks is what ecommerce retailers must get their hands on. PIMworks empowers you to achieve a 360-degree view of product data by encompassing all the information flowing through the system. The pool of data can be managed coherently for effective business functions.
Overall customer satisfaction and better business profits are the goals of almost all ecommerce retailers these days. To help them achieve this goal, accurate product data coupled with a smart product data management system is the dream team that retailers are dependent on.
In short, Data is the new Oil that is fuelling the world of ecommerce today.
