There is one thing companies who subscribe to e-commerce solutions often do not see. Not only do they miss crucial business opportunities, but also e-commerce sales are impossible without it.
Without correct, complete, and current “data”, e-commerce sales are not possible.
Selling fashion or electronics or any product for that matter, is not as simple as you may think. The following examples are few of many, showing you that this market is bigger than you realize – and how good your digital commerce can be in the future.
Shop the Look – Zalando
Online pure play marketplace, Zalando is an important influencer in the purchasing process of a fashion shopper in scores of European markets. To provide an amazing shopping experience on their platform, they launched a, “Shop the Look,” offering in 2015 for the first time.
With Shop the Look, customers could order complete, coordinated outfits, rather than single items, or discover other looks that feature their favorite items of clothing.
But if you sell over 2 million products from over 1000 suppliers, the challenge gets complex. You have to consolidate different colors schemes, size charts, fabrics, styles and others to one common standard to enable these bundles. And you need to do this at a fast pace.
And now come to think of this in an industry with even more complex dependencies such as, automotive after-market, building materials, construction or others.
The Three Important eCommerce KPIs
In an extensive survey conducted by Heiler Software, 400 retailers and manufacturers in leading roles from 14 countries participated. The study delivers more than 30 pages of measurable results before and after implementing an PIM/MDM solution.
This press release summarizes the key findings or KPIs of the research which was divided into three main areas: revenue growth, cost savings and operational efficiency.
The most compelling outcomes were:
- Conversion rates increased by 35% using PIM
- Margins increased by 44% using PIM
- Speed in time-to-market became 75% faster in eCommerce using PIM
Another good read: “Do I need a PIM if I have an eCommerce solution?”.
Here we have a list for other KPIs, business outcomes and benchmarks, impacted by the use of PIM & MDM solutions. These may help you to find and define the objectives for your business.
Retail Industry Examples of Business Outcomes
Music & entertainment retail: Sales increase through faster SKU build & launch time; Improved time to market from 12 days to 4 days; Enabled product volume from 1M to 2M+
Fashion luxury retail: Productivity enhancement by 50-60% with improved data quality.
Beauty & drug store retail: Increased productivity by 33%; Reduced new product introduction timeline by 80%
KPIs that significantly improved productivity and cost reduction
- 3x more output with the same team (multi merchant retail)
- 60% less steps to enrich products online (from 15 to 6 steps) (luxury retail)
- 100% less email exchanges to share and collect media data (from 25 to 0 emails) (luxury retail)
- 50% less in workload for data stewards (industrial distribution)
KPIs on speed & time to market
- 4x faster introduction of new products (multi merchant retail)
- 67% faster creation of customer quotes (from 60 to 20 min) (building distribution)
- 70% faster translation of product information (from 10 to 3 days) (luxury retail)
- 94% faster system integration from a new subsidiary acquisition (from 3 months 5 days) (industrial distribution)
- Up to 60% faster time to market by decreasing time to onboard new online product information (from several hours to only a few minutes) (consumer electronics)
- Grow the business 60% and hit sales targets and within two years as the full product range is available online (multi merchant retail)
KPIs on customer experiences
- 25% less returnsfor online orders thanks to rich product information and informed purchase decisions (building material)
- Increased average basket size by 21%thanks to improved cross selling (building material)
- Increased online range coverage from 12% to 96%(multi merchant retail)
- Supported conversion rate boost of 10% to 20% (fashion brand)
KPIs on improved product data quality
- 80% reduction of product data quality issues (multi merchant retail)
Master Data Management Experience solutions with unmatched Syndication and eCommerce Analytics, who follow the advantages of the platform economy on a no-code or low-code level, are the next big bet for investors and business leaders.
These solutions allow e-commerce businesses to reach new heights by enabling scale & speed with optimized operational efficiency. They connect products, customers, employees, suppliers, locations and more. Of course, AI and machine learning is part of such offerings.
Source: Data Talks