PIM for Retail Chains - Modern Retail Chain Requires Next-Generation PIM for Better Product Data Management
In the digital era, businesses are experiencing the emergence and proliferation of online shopping. To tackle the rising demands of modern age consumers, businesses require a conventional retailing process. Fearing imminent and extinction many retailers have evolved their operation according to the new retail landscape.
The boom of modern retail channels embracing the modern demands of the eCommerce industry. This article elaborates the modern retailing chain which can also be termed as an organized trade channel in brief and why it requires next-gen PIM solutions for the better management of product data.
Before getting deep into the core topic, let us distinguish between traditional and modern retailing. So that you can get clear thoughts about modern retailing and how it differs from the old traditional method.
Traditional Retail vs. Modern Retail
Based on a recent study, the growth of eCommerce is double-digit in recent years. However, the old-school traditional retailing process slows down the eCommerce business a bit. To overcome and to find a new equilibrium, the modern retailing process has evolved as an organized trade channel.
This section elaborates on how the modernized retailing process differs from the old-school traditional retail channel.
Here are the lists of a few aspects that have major operational changes on traditional retailing and modern or organized retailing.
1. Order Acquisition
When it comes to ordering acquisition in the traditional retail channel, the salesperson does the major part starting from reaching outlets, counting inventory, doing the promotional activity, and explaining things to store owners about the order. The store owner does all those analyses and decides on the orders.
However, in the modern retailing channel, things have changed completely. The IT system takes care of the major part of handling orders. Consumers are approached with IT systems in modern retail chain. Once the order has been made, it will flow to the manufacturer’s end or to the LSP (Logistics Service Provider) via email or fax.
2. Executing Orders
In the old traditional retail channel, the distributors carried the order execution. The distributors provided the order details and executed the same within 1 or 2 days from the ordered date. Meanwhile, if the mode of operation is a ready stock unit, the orders will be proceeded immediately by a salesperson.
However, in the modern retail channel, manufacturers fix the delivery slots and delivery windows. The majority of online store has their distribution center or stores within their delivery slots or delivery windows. Consumer orders are added in the queue to the delivery slots or delivery windows of the store and processed in sequence.
3. Promotions or Marketing
When it comes to promotions or marketing aspects, the old traditional retail channel follows the standard company promotions as per the protocols. They might have a separate department for carrying all those promotional and marketing activities. Almost every business/company has its own set of formulas while conducting promotional or marketing campaigns.
However, in modern retail channels, promotional and marketing processes are partially carried by retailers. Just like traditional retailing, promotional activities carried by retailers are unique and different from retailer to retailer. At the same time, product customization or manipulation that is desired for conducting efficient promotional activity is usually done by the manufacturer or LSP.
4. Launching New Products
For launching new products, manufacturers will have a sales launch for the traditional retailers. On that specific sales launch, retailers will introduce the new products to the market and shelved in the stores. And just like the old school, a salesperson will do their job and take orders for the new products and take it to store owners to make a final decision.
Meanwhile, in modern retailing channels launching new products will be a bit more complicated when compared with the old traditional method. The manufacturer needs to convey the launch of new products to modern retailers’ well advance like a month before for retailers’ preparation. A retailer requires time for doing all necessary changes on their sales platform and in their product master database.
5. Payment Processing
In the old traditional retailing method, the consumers pay payments to the salesperson or distributors immediately. And the distributors pay the manufacturer on their next visit or immediately. So the credit period between the retailers or distributors and the manufacturers will be shortly mostly within 2 visits.
Meanwhile, in the modern retailing chain, the credit period is long between the manufacturers and vendors/retailers. Even some retailers will ask for special formats for the invoice from the manufacturers. So in payment processing, traditional retailing channels are way better than the modern retailing process.
On analyzing those differences between the old traditional retailing process and the modern retailing process, it is clearly understood that modern retailers require a different set of data management. The data management solution provided by PIM isn’t going to be enough for modern retailers.
For better and efficient data management, modern retailers require a next-generation PIM system. Here are the lists of benefits modern retailers can avail of through the next-gen PIM system.
- With the next-gen PIM system, error fixing can be done quickly
- Product content will be 100% free from redundancy
- Retailers can focus on product selling and scaling sales without worrying about product content optimization
- New products will reach the market much faster than other manufacturers
- The next-gen PIM system delivers a more advanced communication platform between departments
- Retailers can easily manage all those supplier data
PIM for Retail Chains: Next-Generation PIM System for Modern Retailers
The development and growth of the product-based company depend solely on the product information provided to the customers. The product details play a crucial role as customers nowadays select the best suitable product based on their description, specification, and reviews.
The product information management (PIM) system plays an important role in enhancing the business. PIM enables the organization in the collection, compilation, up-gradation, and management of the product information. This PIM software is important and useful for all the teams involved in the supply chain management of the product. This includes the manufacturers, retailers, wholesalers, distributions, sales and marketing team, etc.
Importance of next-generation PIM for retail chains
For increasing the sales of the product, the different goals set by the eCommerce manager include increased brand loyalty, higher rates of conversion, reduced product returns, and increased customer satisfaction. Achieving these goals does not solely depend on the product descriptions and specifications. It also requires the customer’s experience with the product. The entire customer journey and their product experience are gaining importance.
The customer product journey initiates with the first encounter of the customer with the product followed by the decision-making process for making the purchase followed by actual purchasing. It also includes customer retention by providing customer care. At each of these touchpoints, the emotional and individual experience should be evoked to prompt the customer in making the purchasing decision.
To explore more about the contribution of product information management in the retail business, visit How PIM Helps Retailers On Managing Product Data?
How Do Retailers Benefit From Using The Next-Generation PIM for Retail Chains?
Retailers play an important role in the product supply chain. They are the ones that are in direct contact with the customers. They are the important link between the customers and product manufacturers. The retailers understand the needs and demands of the customers and convey these details to the manufacturers that will lead to the development of the product. The different benefits gained by the retailer by using the PIM system include:
1. Enhance the data quality
Customers rely on the product information provided on the channels for making their purchases. Different product-related details are provided on the channels and this includes the product description, specification, etc. PIM enables the company to update the product details, add, and modify these details centrally. It also enables the organization to add new products. This leads to time-saving and ensures data accuracy across the different channels.
2. Improve the customer experience
PIM plays a very important role in the customer journey for the product irrespective of the channel used for the sales of the product. The retailer’s responsibility is providing non-disruptive services to the customers while shopping in-store or online, across different touchpoints. The customer prefers searching through the different channels for understanding the competitive prices, varieties, faster delivery, etc.
If the customers get the desired product passed on their requirement and liking, there are increased chances of them making the purchase. The PIM enables the retailer to keep the data centralized. This allows them to enrich, manage and optimize the product specifications, descriptions, etc. for the different marketplaces, social sites, web stores, etc.
3. Enables reaching the eCommerce goals faster
PIM software enables compiling and updating the product information at a faster rate. It allows fixing the errors faster as compared to the manual method. It helps in correcting content redundancy. This allows in saving a lot of time thus this time can be used for focusing on the more critical aspects essential for the product development.
The next-generation PIM is innovative and allows the company to stay organized while meeting the marketing requirements. It enables the product details on the different search engines and ensures providing accurate and high-quality product data seamlessly across the channels.
4. Deliver omnichannel customer service
The best shopping experience as defined by the customers depends on the individuals. Some customers prefer having customer support all around the clock, some prefer self-service, some require detailed product specifications before making the purchase, etc. Providing accurate product details to the customers allows the customers to gain confidence in the product as well as in the company.
Enriching the content data for the product description, technical specification, high-quality digital assets, customer reviews, testimonials, etc. create a sense of confidence in the product. This prompts the customers to make the purchase. Answering customer queries helps to build a strong and reliable customer relationship.
5. Marketing and sales growth
Making the product available to the customers at the different locations of the world through the different channels allows reaching the larger crowd. This will need the product information to be provided to the customers in different languages based on the geological location.
PIM allows having a multilingual store that can enable providing the product content in different languages and different currencies. PIM helps in integrating the different platforms and use of various tools like descriptions, pricing, titles, etc.
6. Enhancement of time-to-market over the competitors
Time-to-market is a very important aspect for eCommerce as it ensures sales growth and revenue. The company needs to be fast to provide the desired products to the customers in this competitive world.
The PIM system is a centralized source of the product information and includes all the details related to the taxonomies, instructions, technical specifications, digital assets, localized content, etc. It allows in managing, optimizing, sharing, sanitizing the information across the various channels at a faster rate.
7. Create a data-driven model
PIM allows managing the warehouse, inventory, and even sales data using a single system. A robust PIM enables the organization to provide accurate product details along with innovative images, graphics, videos, etc. that helps the customers to analyze the product before making the purchase. PIM allows tracking the details of the sales and expenses and comparing it with the previous details.
8. Easy integration
The use of PIM software helps the organization to grow the business. It allows integrating with the different channels while expanding the marketplace. This is essential when launching new products or extending the market reach.
Making use of the PIM software allows easy onboarding. Including the different channels for marketing the product enables them to reach more customers by using online as well as offline marketing.
To understand the essence of PIM in your retail business, don’t miss to read How Product Information Management (PIM) Decides the Success of Your Retail Business.
Using a robust next-generation PIM system helps the organization in integrating all the essential product-related details along with understanding the customer journey for the product. This PIM system provides quality product details to the customers that help to build trust, drive customer acquisition, enhance sales, boost brand reputation, etc. Every organization should have a PIM system to boost their sales and the growth of the business.