Digital Product Data & Digital Customer Experience
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Transcript of Digital Product Data & Digital Customer Experience
Digital Product Data
&
Digital Customer Experience
Kees Jacobs
Digital Customer Experience
Consumer Products & Retail
‹#› Copyright © Capgemini 2015. All Rights Reserved
Consumers are not loyal anymore to a single channel but to an experience
across channels !
‹#› Copyright © Capgemini 2015. All Rights Reserved
New channels and changes in customer behavior allow retailers and CP companies
to interact with customers in new ways
Online store
Social media
Direct mailing
Loyalty programs
Online services
Mobile apps
Customer service
Mobile
In-store media
Clubs
Technology The opportunity Potential Benefits Early Adopters
Mobile promotions &
coupons
• Can help drive a sense of immediacy and desired
behavior. E.g. time limited coupons, personalized coupons
• Drive foot traf fic
• Engage and build loyalty
Location-Based Services
• Companies can use geo-fencing around their/ competitor
stores
• Help locate the nearest store, product
• Drive foot traf fic
• Shopper convenience
Inventory Checks
• Can help bring shoppers in f rom out-of -stock competitors
• Mobile inventory check can help capture undecided
shoppers
• Up-sell/ Basket Expansion
• Order before arriving
• Increased sales
Smart Shopping Lists • Better understand consumers’ shopping & buying habits• Engage and build loyalty
• Improved personalization
Mobile Scanning
• Allow shoppers to scan QR codes for reviews, ratings &
product details
• Product videos / how-to guides aid in decision making
• Up-sell/ Basket Expansion
• Engage and build loyalty
Weekly Ads• Mobile ads can create convenience for loyal customers
• Shopping list linked to the ads
• Drive foot traf fic
• Up-sell/ Basket Expansion
• Engage and build loyalty
Loyalty/ Reward Program • Mobile access to loyalty program can create convenience
• Drive foot traf fic
• Up-sell/ Basket Expansion
• Engage and build loyalty
M-commerce
• Customers willing to purchase using mobile if procedure is
secure
• Technologies like NFC are mature for mainstream
adoption
• Quick check-out
• Paperless transactions
• Engage and build loyalty
‹#› Copyright © Capgemini 2015. All Rights Reserved
Agility is needed to quickly adapt to key changes in product data management
Key trends affecting product data
GS1 and data pool development
Regulatory changes
Reviews (experts, peer-to-peer)
Product identification (QR, RFID, NFC)
Growth of in-store digital medias
Consumer demand for product information
Omni-channel targeted marketing
Growth of online stores & services
Traceability
Customizable products
Increased service sales
Omni-channel campaign management
Local sourcing
Device optimization
... and especially to an increasing need of customer relevancy in communication
‹#› Copyright © Capgemini 2015. All Rights Reserved
Capgemini’s study on Digital Product Data Visibility shows significant room for
improvement
• Evaluate how well product data is visible in retailers’ and CP companies’ digital channels
• The study covers 41 leading retailers and 21 consumer products companies globally
• The online sites were assessed through 13 key product data attribute dimensions
Scope of the study
‹#› Copyright © Capgemini 2015. All Rights Reserved
13 different product data attributes were identified for analyzing product data
visibility in retailer digital channels
6
*These are functional aspects that may not be under PDM but are relevant for product visibility and have been considered for this framework
PRODUCT DATA ATTRIBUTES
PRODUCT NAME/BRAND
1
SPECIFICATIONS
2 INGREDIENTS/ FEATURES
3
MANUFACTURER
4
PACKAGING
5
VISUAL
6 SEARCH ATTRIBUTES
7 USAGE INSTRUCTIONS
8 CERTIFICATION/ STANDARDS
9
LANGUAGE
10
PRICE*
11 PRODUCT AVAILABILITY*
12 CUSTOMER RATING*
13
‹#› Copyright © Capgemini 2015. All Rights Reserved
We have defined three maturity levels from “Basic” up to “Leader” for all product
key data attributes
7
BASIC
• The “bare minimums” of product data, based on a must-have level of product data visibility for starting online/digital activities
ADVANCED
• Companies at this level have an advanced level of product data and provide a better than average customer experience across the different product data visibility attributes
LEADER
• Companies at this level have a leading edge product data proposition and are considered best-in-class in their category with well-developed customer experience
Leve
l 1:
B
asic
Le
vel 2
:
Ad
van
ced
Leve
l 3:
Le
ader
‹#› Copyright © Capgemini 2015. All Rights Reserved
Ingredients/ features
Ingredients/features is an important attribute in retailer digital channels
as shoppers may consider it a “must have” in purchase decision
8
• No information or only ingredients presented
• Ingredients and nutritional information available
• Detailed information on product page and icons for easy identification
DESCRIPTION: • Ingredients and nutritional information, also icons for easy identification of product features
BA
SIC
AD
VA
NC
ED
LEA
DER
Leading practice companies typically have: MATURITY LEVEL:
• Detailed information on product features, ingredients, nutritional and storage information are available for each product
Product life guarantee
• Quick view icons pertaining to product features/ description
Source: (a) Capgemini analysis; (b) www.peapod.com;
INGREDIENTS / FEATURES
3
Example
‹#› Copyright © Capgemini 2015. All Rights Reserved
With stricter ongoing regulatory developments, retailers will be obliged to
inform consumers with detailed information on ingredients /nutritional value
9
• Today’s consumers are very interested in the nutritional value of the products making this attribute critical for CP companies and retailers
• 42% of retailers and 57% of CP companies analyzed report the nutritional value of the products on their websites
• Best practice is to also report the Guideline Daily Amount (GDA) values of the product to facilitate the shopping experience
• Many retailers and CP companies also use other dietary and allergen information like “no added sugar”, “free from artificial sweeteners” etc.
• Product ingredients and allergens are also important search attributes and should be added as flexible dimensions to the search feature
• Finding suitable products is easier when shopper can start the search by ticking the relevant attributes, e.g. “no gluten”, “no lactose” etc.
• Leading companies also use their own icons to facilitate the shopping process to indicate e.g. light, non-lactose and low in salt products
• For example, Waitrose provides detailed information on ingredients and nutrition, along with icons for easy viewing
• Morrison’s has a nutrition tool to help shoppers identify products that suit their nutritional needs
Insights:
Ingredients / features
Source: (a) Capgemini analysis; (b) www.waitrose.com; (c) www.morrisons.co.uk;
NOTE: For this study, we have analyzed a total of 41 retailers, and 21 consumer product manufacturers globally.
INGREDIENTS / FEATURES
3
43.9 41.5
14.6 14.3
57.1
28.6
0
10
20
30
40
50
60
70
80
90
100
Basic Advanced Leader
Retailers CP companies
RESULTS OF THE STUDY (%):
‹#› Copyright © Capgemini 2015. All Rights Reserved
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2.80
3.00
Ave
rage
Distribution of retailer average scores
Only few leading players reach higher averages and score well in many different
areas of product data visibility – all companies have opportunities for development
10
Average of retailer averages (1.35)
• Average retailer score is 1.35 – there is a lot of space for improvement
• Only two leading players reached average of 2,00 or higher
• Results are fragmented – many retailers score well on some attributes and poorly on others – all have something to improve
• Low scores are typical for companies with only a few years of experience from online grocery retailing
• As the industry matures, competition becomes tighter, benchmarks rise quickly and companies need to invest in better customer experience
‹#› Copyright © Capgemini 2015. All Rights Reserved
• Icons for easy product identification
• Manufacturer information & country of origin
• Information on external standards for selected products
• Ocado offers customers cooking recipes on the product page
• Recycling information for the package
• Information on special diets, allergens and artificial colors and flavourings
• Special prices and promotions (“Buy 4 for2$”)
• Most comprehensive product data available for private labels
Four leading players score very differently with on the various variables
• Non-food capabilities leveraged also to grocery
• Detailed product specifications
• Engages customer with product reviews
• Advanced search functionality
• Operational ERP integration - product availability
• Leader in ethics - certifications marked well
• Detailed product description for enhanced shopper relevancy, including ingredients, dietary and nutrition information
• Provides link to manufacturer website
• Advice on how to use & store products
Product data attribute
Oca
do
Sain
sbu
ry
Wai
tro
se
Wal
mar
t
Name / brand 1 3 1 1
Specifications 2 2 1 2
Ingredients / features 3 2 3 2
Manufacturer 3 3 1 1
Packaging 3 2 3 1
Visual 2 1 2 2
Search attributes 1 1 2 2
Usage instructions 3 2 3 2
Certification / standards 2 3 2 2
Language 1 1 1 1
Price 3 3 3 1
Product availability 1 1 1 3
Ratings 2 2 1 3
Average 2,08 2,00 1,85 1,77
‹#› Copyright © Capgemini 2015. All Rights Reserved
When looking at attribute average scores, CP companies seem to be managing
product data visibility better than retailers
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
2.60
2.80
3.00
Ave
rage
sco
re
Retailers CP companies
• Largest differences are in presenting brand, ingredients/features, manufacturer and usage instructions
• Best retailers should learn to leverage manufacturer capabilities in these areas
• Interestingly, retailers score higher in product ratings and certifications
‹#› Copyright © Capgemini 2015. All Rights Reserved
• CP companies score significantly better in presenting brand & story telling
• Majority of retailers present product name and brand only in plain text
• CP companies are also better in presenting ingredients/features
• However, also some retailers reach Advanced and Leader –levels
• Over half of CP companies reach the Leader level in usage instructions
• Retailers are also following and increasing usage instructions
Most significant differences are found in presenting the product name/brand,
ingredients/features and usage instructions
PRODUCT NAME/BRAND
1
INGREDIENTS/ FEATURES USAGE INSTRUCTIONS
3 8
87.8
7.32
4.88
19.0
80.95
0.0
0.0 20.0 40.0 60.0 80.0 100.0
1
2
3
CP companies Retailers
46.3
39.02
14.63
14.3
57.14
28.6
0.0 20.0 40.0 60.0 80.0 100.0
1
2
3
CP companies Retailers
53.7
39.02
7.32
33.3
14.29
52.4
0.0 20.0 40.0 60.0 80.0 100.0
1
2
3
CP companies Retailers
‹#› Copyright © Capgemini 2015. All Rights Reserved
Leading retailers for this study come mainly from the UK where online grocery
retailing has grown fast and is already a significant business
Geographical division of scores
• Most of leading retailers in presenting product data in digital channels operate in the UK – examples include Ocado, Sainsbury’s and Waitrose
• Many online grocery stores succeed very well in multiple product data attributes and offer clients advanced digital shopping experience
• The leading position correlates well with the success and size of online grocery stores in the UK
• Also Meijer, Peapod and Walmart, based in USA, are among the top companies to best present product data in online channels
• Other European scores are significantly lower
• Online grocery retailing is still in relatively early maturity and small in size in these countries
• Most companies are in piloting stage, working with “bare minimums”
Insights:
BASIC ADVANCED LEADER
Legend:
‹#› Copyright © Capgemini 2015. All Rights Reserved
Many retailers start small but need to advance fast to offer next levels of digital
shopping experiences
• When starting online operations, first thing is to get the basics in place
• Critical capabilities in creating the online shopping experience are:
• Obtain key product information from manufacturer/data pool(s)
• Get product pictures in place
• Build robust & flexible PDM-solution
• Enhance product information beyond the data in the product package
• Use storytelling to create compelling shopping experience in selected categories
• Build capabilities for producing visuals and and storytelling
• Enhance shopping experience with advanced search and product certifications
• Create competitive advantage by superior online experience & value add services
• Ratings add value to customer
• High-quality usage instructions are also an area where to build value to customer
• Innovative customer interaction also presents opportunity for learning
SPECIFICATIONS
INGREDIENTS/ FEATURES
PRICE
SEARCH ATTRIBUTES
PRODUCT AVAILABILITY
RATINGS
USAGE INSTRUCTIONS
PRODUCT NAME/BRAND
VISUAL AND MULTIMEDIA
CERTIFICATION/ STANDARDS
PACKAGING
MANUFACTURER
MULTI-LANGUAGE
STORYTELLING VIDEOS
Basics in place Leading edge Enhanced shopper experience
‹#› Copyright © Capgemini 2015. All Rights Reserved
As part of their digital transformation, companies need to develop their product data
management capabilities
Digital channel -enabled content
• Additional languages
• Package info
• Consumer oriented marketing texts
• Pictures
• Channel optimized content
• Videos
• Audio
Typical path in digital product data management
Improved quality
• Consumer readability
• Logic checks
• Continuous updating
• Reduction of manual and redundant steps
Enriched master data
• Classifications
• Product attributes
• Regulatory requirements
• Scored attributes
• Recipes • Marketing
assets
• Promotion management
• Packaging
• Traceability
Key links to other areas:
Targeted marketing parameters
• Targeting parameters
• Segment specific marketing texts, pictures & content
Traditional master data
From wholesale/retail perspective… ...to consumer perspective
• Campaign management