Why Product Experience Management Contributes to Higher Conversion Rates


 
The customer is king — this is a well-established truth. In recent years, however, the customer’s “royal” position has proven to be even more powerful than before. With an increasing number of sales channels and touchpoints, her standards and expectations have become higher and higher. This is because, in the digital shopping world, she is no longer bound by time and space. Faced with this challenge, any conventional shop which does not adapt to individual preferences and habits is “royally” screwed.

In order to gain the competitive edge, you should not only satisfy your customer’s expectation — you should even one-up them. Accordingly, it is all the more important to provide your customer with a magnificent Customer Experience. And to this end, consistent product information is a must-have. If its also relevant to the respective context, then all the better. This is what we can refer to as cutting-edge Product Experience Management (PXM).
 
 
 
 

How does PXM work?

PXM optimizes the style in which products are presented. As part of a perfect Customer Journey, customers are to be provided the best possible shopping experience to secure long-term customer retention. Therefore, information on relevant products is to be free of errors and presented in an eye-catching manner, further enriched by multimedia content like images and videos.

Product information for customers is optimized by covering aspects such as personalization, contextualization, product content analysis, and automation. This way, she is not only provided with the right content, but all required data is also firmly embedded within the user interface through which she is navigating.

PXM is growing continuously. New sales channels and touchpoints render it possible to design product information in an increasingly detailed and individualized fashion. The goal of state-of-the-art PXM should be to develop a “sixth sense” in order to see things from the customer’s perspective and anticipate how she will feel in any given use case, all factors considered.
 
 

Optimal Use of PIM for Any Goal-Oriented PXM

The backbone of any online shop is its connection to a system for Product Information Management (PIM). Here, product data is pooled, edited, and distributed. Each of the customer’s actions and reactions is used to optimize the information coming from the PIM system, hereby improving Customer Experience. The intelligent interaction between all sources and systems is what forms the very foundation of an operative PXM.

The unity of the lived product experience gains more and more significance for a company’s commercial success. Many retailers invest in PXM to stay one step ahead of their fellow competitors.

Efficient PXM can only work in conjunction with a meaningful distribution of product-related data. Customers want individualization, personalization, and the feeling of uniqueness. Yet, besides all this, good Product Information Management supplies you with much more:

Quality Comes First
Data is not only edited in and distributed with PIM systems, but also supplemented with further third-party information and checked for quality. To guarantee for a smooth product experience, the data is to be complete and correct. Inappropriate product suggestions because of lackluster data quality frustrates the customer just as much as missing product information. A PIM system establishes the quality threshold required, functioning on the basis of Quality Gates which identify empty data records and stop inconsistent data from flooding your shop.

The structured pooling and distribution of data allows you to fuse marketing texts with product information, or organize the info sets for both individual products and entire assortments alike. The same goes for target-group-centered editing of content for an effective individualization of the information output.

Appealing Product Experience
The distribution of high-quality information culminates in a unified Customer Journey thanks to PXM. It speaks to the customer’s emotions, establishes trust, and evokes a feel-good atmosphere. This includes a consistent Look&Feel, as well as an individualized and clear-cut user interface.

Industry giants such as IKEA or Mr. Spex are already making good use of PXM and work with technologies such as 3D rendering, 360° views, virtual reality glasses, or augmented reality. Equipped with this, the customer has the genuine feeling of placing herself in the hands of competent experts throughout her entire Customer Journey.

Localization for High Comfort
Localization opens up a range of possibilities for your customers. For example, regional products are suggested when abroad — while also abiding to the country’s specific labeling requirements.

With PIM, your products can adapt to the respective markets, allowing you to fully exhaust your sales potentials. Even workflows can be adjusted to regional specifics for the purpose of automation.

Optimized Integration
For the central management of product information and its targeted distribution, you are to combine data from various systems and transfer it to the shop, e.g. price lists and supply counts from your ERP system. A good PIM system has interfaces for the smooth interaction of all systems.

Findability as a Guarantor of Success
Only products that can be searched and found can be sold. In order to display appropriate filters for individual search results, the corresponding information is to be managed extensively. Potential customers who are forced to click their way through the entire website before getting to the thing itself usually give up halfway through.

If the displayed products have high brand recognizability and can be compared with one another in a transparent manner, the customer feels all the more comfortable during her Customer Journey. She can discover the product which suits her the most without the effort of a tedious search.

Support by Artificial Intelligence
AI can be useful for e-commerce in many ways. You can generate keywords for products automatically using image recognition algorithms or segment user data in a meaningful manner. It helps you analyzing the purchasing behavior on the basis of large quantities of data, organize information by relevance, and always display the adequate content. AI may even generate landing pages dynamically, allowing the customer to view products, say, in the order of preference. Ideally, this may contribute to higher conversion rates.

Particularly efficient AI technologies can even anticipate a customer’s subconscious wishes and motivate purchases in this way. For example, the AI may recall purchasing decisions related to birthdays form the past year around the same time and send out e-mails with birthday ideas accordingly.

Cross-Selling and Upselling
In the fields of cross-selling and upselling as well as customer satisfaction, a PIM system can boost your success significantly. Suggestions for purchase decisions of other customers or alternative products because of supply shortages contribute to high customer satisfaction — as long as they are appropriate and add value from the customer’s point of view.

Configurations and Guided Selling
Nowadays, you can easily put together your own Nike sneakers or build your own dream car using a configurator. To this end, a rule set is developed which defines all possible combinations, allowing customers to design their own dream product page-by-page with little to no user inputs. It defines what’s available and what’s valid for selection. In the process, the configuration draws all required information from the PIM system.

Even if the customer is looking for a product which she is not familiar with, the Guided Selling accompanies her throughout the entire decision-making process. No jumble overloaded with filters required. In a multi-step process, she can choose between all offered articles and, in the end, she gets exactly what she wants.

 
 

PIM is an Indispensable Foundation for Future-Oriented PXM

A performant PIM system is what renders a customer-centered PXM possible in the first place, since it expands the conventional Product Information Management with features such as contextualization, automation, and product analysis. Using PIM, you can respond to up-coming challenges of designing Customer Journeys in relation to personalization and customer requirements. Adjustments to the provided product information, individualized content, and a perfect shopping experience thanks to Guided Selling, filter-based or keyword-based search functions, and interactive interfaces based on Virtual Reality are what pave the way for long-term customer satisfaction.

At the same time, the implementation of PIM secures your competitive edge on the ever-growing markets. With good product presentation, products stand out and become more memorable in comparison to your competitors. In this manner, you establish the cornerstone for sustainable success: Not only do you boost your own brand and customer retention by gaining the customer’s trust, better product data also increases both your conversion rate and time to market.
 

 

Author: René Weinhardt
As an IT project manager and counselor, René Weinhardt routinely works on solving his customers’ challenges concerning both product data processes and e-commerce related issues on a day-to-day basis. In particular, he accompanied several projects for customers from the industries which either have their own online shop or provide their product data to their various retailers as data suppliers. When it comes to project management, he organizes PIM requirement workshops and defines the appropriate specifications for its implementation. Establishing a smooth communication between the various tools and systems in play with the use of interfaces is one of his leading disciplines.
 
 
 
“Product Experience Management is, to me, one of the core concepts enabling e-commerce companies to stay ahead in the competition for customers. As different as customer requirements may be from project to project — ultimately, PXM functions the same for all companies: you require quality data, high-functioning interfaces, and a performant PIM system.”

René Weinhardt

 

 
 

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Central data storage, extensive interfaces and a flexible data modelling are only some features of the eggheads suite. With our PIM- / MDM-System you manage your product data optimally to increase your conversions.

 
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