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Omnichannel vs. Multichannel eCommerce

eCommerce

Omnichannel vs. Multichannel eCommerce

Many organizations have been expanding operations to take full advantage of new online touchpoints. But how do you know which eCommerce strategy is right for your team, and how do you get started?

It wasn’t long ago that catalogs ruled the day, brick-and-mortar stores ruled High Street, and malls were the place to be. Salespeople hit the actual pavement hawking manufacturers’ goods from coast to coast. 

Then along came the digital transformation.

First there was dial-up internet and chat rooms. Then came along Amazon, social media, Yelp reviews. Before you knew it, you barely existed if your business didn’t at least have a Google listing.

Each of these new creations became more than a fad. They became channels through which potential buyers learned about your products. But businesses faced the challenge of managing these multiple channels at once, and two dominating strategies emerged: omnichannel eCommerce and multichannel eCommece.

What exactly is difference between omnichannel vs. multichannel, and how can one or the other impact your business? Let’s dive in.

 

What is multichannel eCommerce?

Multichannel eCommerce is short for “multiple channels.” It simply means that you sell your products on more than one channel. Many retailers have both a physical store and an online presence, selling on social media, eCommerce sites, marketplaces, and other platforms. For manufacturers, multichannel eCommerce has been truly revolutionary, allowing them to sell direct-to-consumer rather than having to rely on third parties and catalogs. 

Businesses following a multichannel approach focus on building out individual channels while ensuring product information is accurate and consistent. They tailor strategies to each channel and track results, but each channel acts as a “solo act” rather than a player in an orchestra.

 

Benefits of multichannel eCommerce

Because of the digital transformation, even the most old-school retailers and manufacturers typically have a basic website or social media presence by now, making them multichannel by definition.

For some, this simple strategy can bring rewards like:

  • Reaching more customers and new audiences
  • Reaching shoppers when and where they are most likely to buy
  • Increasing incremental sales and total sales volume
  • Increasing awareness of your brand
  • Driving higher average order value
  • Growing your online presence and sales
  • Providing a more consistent and rewarding shopping experience

 

Drawbacks of multichannel eCommerce

So why the debate between multichannel eCommerce vs. omnichannel?

Those who have operated under a multichannel eCommerce framework will know the struggles well, such as:

  • Implementing new infrastructure and processes needed for fulfillment, shipping, logistics, etc.
  • Increased costs due to new requirements
  • Greater demands on the supply chain
  • Channels and data becoming siloed
  • Inconsistent product information, branding, and customer experiences

New business plans can typically fix the first three issues. However, the last two points are the reason why multichannel vs. omnichannel eCommerce remains a problem, so let’s dive into omnichannel.

 

What is omnichannel eCommerce?

Omnichannel eCommerce combines all customer channels for brand interaction into one strategy, going beyond multichannel approach. Instead of working separately, all your channels collaborate, communicate, and influence each other. This creates a harmonious “orchestra” that guides your customers throughout their purchasing process.

 

What’s the difference between omnichannel vs. multichannel?

The biggest difference between omnichannel and multichannel eCommerce is that while omnichannel is people-focused, multichannel is product-focused; while omnichannel is customer-centric, multichannel is channel-centric. Multichannel eCommerce is all about moving inventory as efficiently as possible through various channels. Omnichannel takes a more holistic approach, aiming to provide a seamless experience throughout the entire customer journey. 

Both strategies have data at their core, but even then, there’s a difference: The foundation of multichannel eCommerce is product data. The foundation of omnichannel eCommerce is both product and customer data. 

Multichannel presents your products on various channels and allows your customers to purchase them or otherwise communicate with you. You’ll collect data on what’s selling, when, and how quickly, but not on customer behavior and preferences. And while you’ll be able to see individual channel performance, you won’t be able to see how all the channels work together.

Omnichannel retail is an integrated experience. Data is shared between channels to target and retarget buyers, providing seamless experiences. Buyers can continue where they left off, even if it was on a different channel. Each interaction builds upon the last, fulfilling the customer’s needs as they progress through the buying journey. 

Essentially, omnichannel takes multiple channels and synchronizes them, while multichannel leaves them separated and siloed. Thus, all omnichannel eCommerce is multichannel, but not all multichannel is omnichannel.

 

So why isn’t everyone doing omnichannel?

When you look at omnichannel vs. multichannel, it seems obvious to say that omnichannel is better. Multichannel is a more siloed approach, and whether you’re in retail, manufacturing, or distribution, the digital transformation has paved the way forward for holistic, omnichannel eCommerce. 

So why aren’t more companies focused on omnichannel?

The truth is that omnichannel strategies typically require a large investment of resources, especially in the beginning. If you operate out of a brick-and-mortar store or warehouse using a catalog or third-party partnership model, creating even a multichannel strategy means you’ll need to build a website, leverage marketplaces, learn about social media, and start advertising.

To reach true omnichannel status, you’ll also need to syndicate your product data, optimize your tech stack, synchronize your customer data, and then use analytics to segment and target and deliver personalized content at every touchpoint.

When business are instead offered a simple, straightforward multichannel strategy that can still increase sales in the short-term, it can be tempting to not make a further investment in omnichannel. But that’s a mistake.

Omnichannel vs. multichannel eCommerce is ultimately about a long-term vs. short-term approach. The fact is that the digital transformation is turning the world toward omnichannel experiences. You can either build an omnichannel commerce strategy now and get ahead of your competition—or you can be left behind. 

Luckily, many of the differences between omnichannel vs. multichannel can be mitigated with the right technology and partners. While a multichannel strategy will use separate and disparate technologies, like eCommerce platforms for selling, customer relationship management (CRM) systems, or customer data platforms (CDPs), composable technology allows you to orchestrate and scale your tech stack as your challenges and goals expand.

Best-of-breed Product information management (PIM) systems are a great place to start implementing an omnichannel strategy. A PIM provides a central database for your product information, allowing you to distribute consistent, accurate data to all of your channels while also conforming to their rules — and a composable PIM means that it connects seamlessly with your existing technology, and plays nicely with new systems introduced down the road.

Ready to learn more about best-of-breed technology can help you implement and support an omnichannel strategy? Book your demo today to see the benefits for yourself.

Akeneo Product Cloud

Discover how Akeneo’s composable technology can support an omnichannel product experience strategy today.

Casey Paxton, Content Marketing Manager

Akeneo

2024 Retail Trend Predictions

Retail Trends

2024 Retail Trend Predictions

Looking to the coming year, we break down how the retail landscape is evolving to provide consumers with more personalized experiences and unparalleled convenience. Plus, we take a glimpse at how the circular economy can support a brighter, more sustainable retail tomorrow.

As we gear up to welcome 2024 with open arms, many brands and retailers are heads-down in annual budgeting and planning mode. Despite what some gurus or financial analysts may have you believe, nobody can predict the future with pinpoint accuracy. But what we can do is put away the crystal ball and instead take a look at what’s happened this past year to take an educated, speculative journey through some forecasts for the retail industry in the coming year. So, grab your virtual shopping cart, and let’s dive into what the future of retail might hold.   

1. Data-Driven, Hyper-Personalized Shopping Journeys

In 2023, we saw the rise in popularity of highly personalized product recommendations and experiences based on deeper insights into customer shopping behavior. In 2024, we expect this area of Product Experience (PX) Strategy to only continue to grow as more advanced technologies and AI-driven systems that gather and process vast amounts of customer data are released.  Personalized interactions will become less of a luxury and more of a standard as this level of personalization not only enhances the customer experience but also drives higher conversion rates and customer loyalty. It’s a win-win for both retailers and consumers. As an example, let’s take a look at how fictional sustainable fashion brand, ZigGreen Apparel, would provide data-driven shopping journeys. If a consumer likes a post on ZigGreen’s Instagram with a jacket made out of recycled material, they can recommend that jacket the next time the consumer heads to ZigGreen’s website. Or perhaps several customers who purchased their thermal beanie also bought the thermal scarf in the same color, so when a consumer adds the beanie to their cart, the scarf automatically pops up as suggested.      

2. Transparent Supply Chains & Business Practices

In the wake of global awareness regarding environmental and social issues, transparency in supply chains and business practices will be a critical focus for retailers in 2024. Consumers are becoming increasingly conscious of where and how the products they buy are sourced and manufactured, and providing a certain level of transparency builds trust with consumers and can be a powerful differentiator for brands. Plus, transparent supply chains are currently poised to be less of a recommendation and more of a requirement in the coming years, at least for retailers operating in the EU. The European Digital Product Passport (DPP) initiative comes under the European Green Deal, first approved in 2020, and aims to gather data on a product and its supply chain to share it across the entire value chain so all actors, manufacturers, repairers, and consumers better understand the environmental impact of the materials and products they use. Let’s go back to our eco-conscious brand, ZigGreen Apparel. Providing insight into their supply chains such as what sustainable materials are used, where they were sourced, and the steps taken to reduce their carbon footprint empowers shoppers to make informed choices and feel confident that they’re supporting a brand that shares the same values.

Digital Product Passport 101

3. Incorporation of AI to Enhance Customer & Employee Experience

Unless you’ve been living under a rock in 2023, you’ve likely heard of Artificial Intelligence (AI).   While it’s easy to over-hype the impact that AI can have on the retail industry, there are some concrete ways this technology can have a real impact on the efficiency and optimization of your organization, including:
  • Generate & enrich product content: Quickly and easily generate ready-to-edit content, including product descriptions and product page copy that aligns with your business’s tone of voice, product keywords, and character limits.
  • Collect & cleanse product data: Leverage AI to accurately clean and enrich any product data including de-duplication, data extraction, and product categorization & classification, at scale and in a centralized way. Relieve your teams from lengthy manual data work by leveraging the power of AI.
  • Enhance work automation: Remove lengthy manual tasks and increase operational efficiency, elevating employee job satisfaction and productivity
  • Unburden & support customer service: AI can help unburden support teams and make them highly efficient by intelligently routing specific requests or questions to specific people or departments, encouraging higher customer and employee satisfaction
  • Personalize content to new markets and geographies: Automatically translate product content to quickly and efficiently deliver product experiences at scale and in any language with AI
With the help of AI, the folks at ZigGreen Apparel can quickly and easily generate ready-to-edit content that aligns with their unique tone of voice, product keywords, and character limits, saving time and ensuring that the information provided is consistently on-brand, informative, and engaging. Or maybe they employ the help of a machine learning algorithm to predict upcoming trends and seasonality patterns to better protect against overstock and understock situations based on millions of data points of customer behavior.    

4. Seamless Experiences Across Digital, Social, and Physical Channels

The omnichannel experience has been a buzzword in retail for some time, but in 2024, we expect the demand from consumers for seamless experiences across digital, social, and physical channels to be higher than ever before. For instance, a customer might discover a fashion brand on social media, explore their online store, and then decide to visit a physical store to try on the clothes. It’s the retailer’s responsibility to ensure that the customer’s preferences and shopping history are seamlessly transferred across these channels, and that they are able to find all the information they may need to make a decision regardless of where they’re interacting with your company. Let’s say I’m scrolling in TikTok and see a video of my favorite influencer showing off their newest sweater from ZigGreen. I eagerly click the link to check it out on ZigGreen’s website and learn more about the color, size, price, and shipping estimates. As I’m scrolling through the user reviews of the sweater, I see that many people are claiming the sweater runs small, and I decide I want to try on the sweater before purchasing. Luckily, I notice a “Find in-store” button for the sweater, and when I click it, I can see all the brick-and-mortar locations within a 50 mile radius that are carrying the sweater so I can go try it on and select the right size. This seamless cohesion between channels provides a trustworthy experience for the consumer and reduces the likelihood of a return or an unsatisfactory purchase.    

5. Growth in Demand for a Circular Economy

An economic model that aims to minimize waste, make the most of resources, and reduce the environmental impact of products and services, the concept of a “circular economy” has already grown in popularity over the past few ways and is poised to become even bigger in 2024. Investing in upcycling or recycling programs can not only reduce the carbon footprint left behind by your organization, but can open up new streams of revenue and provide consumers with an affordable marketplace to buy and sell products with like-minded shoppers. In particular, a resale market can enable your organization to:
  • Increase Store Traffic: Customers are increasingly drawn to stores that offer drop-off points for their pre-loved items.
  • Reduce Return Rates: By extending the lifespan of products through resale or refurbishment, retailers can significantly reduce the number of returns, cutting down on waste and saving money.
  • Communicate a Shared Passion and Commitment: Participating in the circular economy sends a strong message that your brand cares about the environment, which can foster customer loyalty and attract like-minded consumers.
  • Improve Upsell and Cross-Sell Opportunities: When customers bring in products for resale or recycling, retailers have an opportunity to upsell new items or cross-sell related products, increasing revenue.
For ZigGreen Apparel, this could look like introducing a clothing rental service that allows customers to subscribe to and rent the latest sustainable fashion collections instead of purchasing single-use items This approach encourages the reuse of clothing, extending the lifespan and reducing the environmental impact of fast fashion. Or maybe ZigGreen can create a program that allows customers to send back their ZigGreen garments that are no longer in use, and then transform them into new, unique pieces, not only reducing textile waste and cost of supplies but also providing customers with a tangible connection to the circular fashion journey.  

To 2024 and Beyond

Despite what many economists and analysts would want you to believe, nobody can predict the future. What we can do is take a look at consumer behavior and analyze the strategies that companies are using to successfully navigate such uncertain times. Technological advancements and evolving customer expectations mean that the retail landscape is changing at a break-neck speed, and organizations who are able to adapt and optimize their presence on new channels and markets are the ones who will be around for the long haul. Interested in future-proofing your organization through 2024 and beyond? Reach out to an Akeneo expert today to see how we can set you up for success.

Akeneo Product Cloud

Discover how Akeneo technology can create the foundation needed for omnichannel product experiences.

Casey Paxton, Content Marketing Manager

Akeneo

The Secret to 2023 Black Friday Success

Holiday Shopping

The Secret to 2023 Black Friday Success

Discover the future of Black Friday shopping as we delve into the evolution of the holiday shopping season and uncover innovative strategies that blend online and in-store experiences. Learn how embracing cutting-edge technologies can make Black Friday a memorable and fulfilling event for both your team and your customers.

In the early 2000s, Black Friday was synonymous with waking up at the crack of dawn, braving long lines, and jostling with fellow shoppers to snag the hottest deals.  While the thrill of in-store shopping still holds a special place in many hearts, the retail landscape has undergone a profound transformation in recent years. Black Friday, and indeed the entire holiday shopping season, has migrated to the digital realm, embracing the convenience and accessibility that eCommerce offers.  But, make no mistake, Black Friday remains a retail juggernaut, and the key to its continued success lies in crafting seamless omnichannel experiences that bridge the gap between online and offline shopping, sometimes referred to as “phygital”. Like many things in life, this hybrid shopping experience is much easier to discuss and much harder to implement. With that in mind, let’s walk through just a few of our proven methods of blending on the online and offline customer experiences, enabling your brand to stay ahead of the curve this 2023 holiday season.  

1. Offer Hybrid Shopping Options

One of the first steps in creating a seamless omnichannel Black Friday experience is to offer hybrid shopping options. “Buy Online, Pick Up In-Store” (BOPIS) and “Research Online, Buy Offline” (ROBO) are two such options that have gained significant traction over the past few years; in 2023, 84% of consumers utilized ROBO as part of their shopping journeys, along with 77% for BOPIS.  Options like these mean that shoppers no longer have to meander through crowded stores in search of specific items during the Black Friday rush; they can browse from the comfort of their own home but still receive the product that day. And it’s good for your business too, resulting in increased foot traffic to brick-and-mortar stores, increased sales, and reduced return rates as the consumer gets to examine the product in person right away.  

2. Ensure Cohesive Product Information Across All Channels

Without access to real-time inventory data, your digital teams may promote products that are already out of stock in physical stores. Pricing discrepancies between a social media ad and your eCommerce site can lead to a frustrating, disappointing experience. A sales associate may recommend a customer to check out their website if something is sold out in the store, only for the customer to realize it’s sold out online as well. To ensure a seamless shopping journey, it’s crucial that your digital teams, social media teams, marketing teams, and point-of-sale (POS) teams have access to the same information. If these teams don’t have access to the right product information, including real-time inventory data, product availability, and pricing, then it’s impossible to provide a consistent customer experience across all channels.

2023 Holiday Season Strategy Guide

3. Localize Product Content

The global reach that the digital market provides is both a pro and a con; while it opens up the doors to a worldwide audience on an unprecedented scale, it also means that you need to provide products to a worldwide audience. That means using the right currency, units of measure, languages, and more.Your digital presence should feel personalized to each customer, irrespective of their location. During a global sales event like the holiday shopping season, customer expectations are at their peak and any discrepancies in product information can result in confusion and frustration. Consistency ensures that customers encounter the same details, pricing, and availability wherever they’re shopping  

4. Incorporate Innovative Technologies

Embracing these innovative technologies can fundamentally transform both in-person and online shopping experiences, enhancing engagement and efficiency. In physical stores, the incorporation of innovative technologies can create immersive and interactive shopping environments. For example, Virtual Reality (VR) and Augmented Reality (AR) can be harnessed to allow shoppers to “try on” products virtually, such as clothing, without physically putting them on. AR can enhance product displays with digital overlays, providing additional information or visualizations. These technologies not only captivate customers but also alleviate the need for extensive physical inventory, streamlining operations and reducing the risk of products being out of stock during Black Friday. The online shopping landscape is equally ripe for innovation. Artificial Intelligence (AI) has given rise to round-the-clock customer support, tailored product recommendations and bundles, personalized deals based on preferences and browsing history, and more, leading to an enhanced customer experience and increased conversions.  

Navigating the Omnichannel Future of Black Friday

Black Friday’s retail prowess remains unshaken, and its continued success hinges on crafting seamless omnichannel experiences that bridge the gap between online and offline shopping. The future of shopping is about embracing convenience, engagement, and personalization, ensuring that every customer’s journey is a memorable one, and those brands who do so will not only survive but thrive in this new era of retail.  It’s time to gear up for the upcoming Black Friday and holiday shopping season by ensuring your teams and your technology are empowered to offer your customers the omnichannel shopping experience they’re expecting. Reach out to a Product Experience (PX) expert at Akeneo to learn how.

2023 Holiday Season Strategy Guide

Discover what it takes for brands to succeed this holiday season with tips & tricks from Algolia, Akeneo, BigCommerce, Unifai, and more.

Casey Paxton, Content Marketing Manager

Akeneo

The AI Tour: Top 5 Hits for Revolutionizing Customer Experiences with AI

Artificial Intelligence

The AI Tour: Top 5 Hits for Revolutionizing Customer Experiences with AI

From playing a pivotal role in personalizing customer interaction to how it can mitigate returns “all too well”, we’ve crafted our own setlist that breaks down the benefits of Artificial Intelligence, which may or may not be inspired by Taylor Swift’s Eras Tour.

It may have been a “cruel summer” for those choosing not to embrace AI but for those who have, it’s making their “wildest dreams” come true. And those organizations are continuing to reap the benefits. From playing a pivotal role in personalizing customer interaction to how it can mitigate returns “all too well”, we’ve crafted our own setlist that breaks down the benefits of Artificial Intelligence, that may or may not be inspired by Taylor Swift’s Eras Tour (what can I say, she’s a “mastermind”!). 

Track 1: “Enchanted” Customers

Step into a world where customer experiences are not just transactions but enchanting journeys and immersive experiences. From tailored recommendations that feel like a whispered secret to predictive insights that anticipate desires, AI can help transform mundane transactions into extraordinary moments. We asked Steve Engelbrecht, Chief Executive Officer at Sitation, LLCto provide some insight on: 

What innovative ways is AI being used to personalize customer interactions?

Steve: In today’s digital landscape, AI is a powerhouse when it comes to elevating the customer experience. It’s not just a technology; it’s a game-changer. Think of it as your secret weapon for delivering exceptional interactions with your customers.

Take personalized product recommendations, for instance. AI can analyze past interactions, sales data, and product availability, tailoring recommendations to each customer’s unique preferences. The result? Boosted engagement, higher conversion rates, and happier customers who discover products they genuinely love. But that’s not all – AI goes beyond recommendations. It reduces decision fatigue, constantly fine-tunes its suggestions, and even opens doors for cross-selling opportunities.

Now, let’s talk about generative AI. This wizardry is all about crafting personalized content that speaks directly to your customer segments. By aligning messaging with individual preferences and interests, it makes your customers feel like you truly understand them. And when they feel understood, conversions soar, and cart abandonment dwindles. The beauty of generative AI lies in its scalability and efficiency. It’s your ticket to creating exceptional interactions on a grand scale while gaining valuable insights to steer your business in the right direction.

AI isn’t just important; it’s indispensable for enhancing customer interactions. Whether it’s personalized product recommendations or tailored content, AI has the power to transform your website into a hub of engaging, satisfying, and data-driven experiences for your customers. 

We see AI as the future of digital merchandising and have built the preeminent delivery team for artificial intelligence as part of an Akeneo Product Cloud implementation. Our staff of data scientists, engineers, and consultants live and breathe product data, and are passionate about creating extraordinary and highly personalized customer interactions using this fascinating and disruptive new technology.

Track 2: No Longer the “Anti-Hero”

Returns are inevitable and play a major role in guaranteeing customer satisfaction but, with AI, returns shed their antihero status and transform into an opportunity for refinement. AI within a PIM framework, learns from return data, offering valuable insights for product improvements and customer satisfaction optimization. The narrative evolves further, casting returns not as adversaries but as catalysts for continuous improvement and customer-centric innovation in the ever-evolving landscape of eCommerce. We asked Maximilien Schall Fonteilles, Chief Executive Officer at Dataggo for his thoughts on:

How can AI be utilized to mitigate return rates?

Max: Reducing return rates is essential for retailers in all sectors, not only to protect their margins but also to guarantee customer satisfaction. Artificial intelligence offers powerful tools and promising solutions to help achieve this goal, both reactively and proactively.

One of the most immediate benefits of AI is its ability to rapidly process large quantities of data, both structured and unstructured. In the context of product returns, this means that AI can quickly analyze the reasons why customers return items. Whether through comments left on the site, product reviews, emails to customer service, or even conversations on social networks, AI can identify recurring patterns and trends that might escape human analysis to trigger initial resolutions.

Once these patterns have been identified, AI can also help companies implement solutions by suggesting additions or modifications based on customer feedback, improving the clarity and accuracy of product information. For example: adjustments in the size guide, identification and enrichment of insufficient or misleading information…

Finally, AI can also play a preventive role, reducing the likelihood of returns before they even occur. Thanks to sophisticated recommendation algorithms, AI can suggest products that better match customers’ individual preferences and needs. By analyzing purchase history, browsing behavior, and other relevant data, AI can predict with astonishing accuracy which products are likely to appeal to a given customer. This not only reduces the risk of impulse purchases that are later regretted but also improves the overall shopping experience for the customer.

What’s next? AI, combined with augmented reality, could offer innovative solutions such as “virtual trials”. For fashion retailers, for example, this could enable customers to try on garments virtually before buying, reducing the need to order several sizes or colors to try on at home.

Track 3: Filling the “Blank Space”

In the realm of business expansion, AI serves as the masterful brushstroke that fills the canvas of untapped markets and geographies. AI can help decipher market trends, consumer behaviors, and cultural nuances, providing businesses with invaluable insights into the uncharted territories they aim to explore. This intelligent guidance ensures that market entry strategies are not only well-informed but also tailored to resonate with the unique demands of diverse audiences. From language customization to understanding local preferences, AI becomes the compass navigating businesses through the complexities of new markets. Our partner, Nick Panagopoulos, VP, Global Strategic Alliances at TransPerfect provided some key perceptions on: 

How does AI help businesses tap into new markets and geos?

Nick: AI unto itself does not help a business tap into new markets and geos. Instead, it may be used to help make the process more efficient. Whether it is being used for competitive insights, market intelligence, or as a device to streamline the process of content generation, the applications for AI are endless. What is exciting for TransPerfect and our customers is the new ways it helps take what was historically very expensive work and make it more efficient and cost-effective.

The translation industry is no stranger to this concept of technology making the process more efficient. With the advent of translation memory in the late 90’s and the broader adoption of machine translation in the past decade, technology continues to revolutionize how companies communicate with international markets. AI is the next great wave of efficiency and has, almost overnight, created a whole new industry of services designed to help companies take advantage of this technology, train it for their uses, and drive the greatest balance of efficiency and quality from the output.

Track 4: “I Can See You” Out of Stock

The worst feeling is when you find an item that you love, whether it be a shirt, shoes, a child’s toy, or kitchen appliance only to see the words “out of stock” next to it. Customer dissatisfaction due to the unavailability of products, lost sales and revenue since the customer is now looking elsewhere for the item, and supply chain disruptions from stockouts affect production schedules and shipments making this scenario a nightmare for any retailer or brand. However, AI can play a transformative role in preventing this and more. 

According to the Google Cloud Gen AI Benchmarking Study of July 2023, “80% of manufacturing organizations consider machine-generated events monitoring to be valuable” and “AI will act as a Supply Chain Advisor and optimize fulfillment by recommending best-suited suppliers based on relevant criteria.”

From demand forecasting to predictive analytics, to real-time monitoring and dynamic reordering, the benefits of incorporating AI are endless and have made it a strategic business imperative. 

“Generative AI opens up a new avenue, allowing people to think fundamentally differently about how business works. Whereas AI and ML were more about productivity and efficiency — doing things smarter and faster than before — now, it’s ‘I can do it completely differently than before.”

Carrie Tharp, VP of Strategic Industries

Google Cloud

By leveraging AI in supply chain management, businesses can not only prevent stockouts but also optimize inventory levels, improve customer satisfaction, and build a more resilient and agile supply chain. AI’s ability to analyze vast amounts of data and make intelligent predictions positions it as a valuable tool in addressing the consequences of out-of-stock situations.

Track 5: Sustainability Will “Never Go Out of Style”

Consumers are increasingly wielding their purchasing power as a force for good. Conscious consumerism has emerged as a powerful movement, transcending traditional buying habits to embrace values that extend beyond product features and prices. This paradigm shift is not just a trend; it’s a collective awakening to the impact our choices can have on the world. So, how can AI contribute to sustainable and ethical practices in retail?

Product Information and Labeling. AI can analyze and interpret complex product labels, certifications, and ingredient lists. Consumers can use AI-powered apps to quickly assess whether a product aligns with their values, such as being cruelty-free, organic, or sustainably sourced.

Personalized Recommendations for Conscious Consumerism. AI algorithms analyze consumer behavior and individual preferences, purchase history, and ethical considerations to provide personalized product recommendations. This ensures that consumers are exposed to options that align with their values, making the shopping experience more tailored and conscious and retailers can leverage this to promote sustainable and ethical products, encouraging conscious consumer choices.

Circular Economy Initiatives. AI facilitates the implementation of circular economy practices, such as product recycling and refurbishing. Intelligent systems can identify products suitable for reuse or recycling, supporting retailers in designing and implementing circular business models. 

We can conclude that the infusion of AI into customer experiences enhances the rhythm of customer interactions, predicting desires and fine-tuning personalized experiences. And don’t just take our word for it; major retailers are already leveraging AI, and you can hear directly from one of our customers, Havaianas, here

If you’d like to hear more on this topic, we are making 4 tour stops next year! It may not be as worldwide as the Eras Tour, but you can join us in Boston, Paris, London, and Cologne for Unlock on Tour to hear more, or perhaps just come and give Ziggy a friendship bracelet – she might have one for you too. Reserve your early bird ticket now

Kateri Osborne, Director, Global Integrated Demand

Akeneo

The Power of Social Commerce: Your Key to 2023 Holiday Prosperity

Holiday Shopping

The Power of Social Commerce: Your Key to 2023 Holiday Prosperity

Explore the dynamic landscape of social commerce and discover how it’s becoming a pivotal tool for brand success in the digital age. From influencer partnerships to tailored content strategies, this article offers insights into harnessing the power of social commerce and thriving in the ever-evolving world of online retail.

Have you gone on TikTok recently?

It seems as if every other video that pops up on your FYP recently is promoting some product that promises to change your life or revolutionize the way you look, along with a link directly in the video that you can click and purchase that very product. Sometimes I’ll be halfway through a video, blithely unaware that I’m being sold anything until I spot that little gray “eligible for commission” bar sitting right over the caption.

With an estimated 33 million shoppers in the US alone, the popularity of TikTok Shop is picking up the pace and showing no signs of slowing down, and it’s clear to see why; the video app allows brands to connect with micro-influencers with niche audiences and connect authentically with consumers where they naturally go.

And while social commerce like TikTok Shop faced some initial criticism and hesitation, that unique ability that social media provides means that brands that can crack the social commerce code are the ones that will succeed in scoring a sizable portion of the nearly $1 trillion market by 2028.

With the holiday season fast approaching, let’s take a look at four ways brands can harness the power of social media to provide a seamless shopping experience for their consumers, and why a successful social commerce strategy relies heavily on the quality and completeness of your product information.

 

4 Ways to Utilize Social Commerce This Holiday Season

1. Partner with influencers to reach a niche audience

Influencer partnerships have become a driving force for brand awareness and purchasing decisions. The power of product placement and endorsements on social media is undeniable, with 57% of consumers making purchases based on information provided by influencers.

Here’s where it gets interesting: with social media, you no longer need a high-priced celebrity to promote your brand. Creators with smaller followings can work just as effectively. Nano and micro-influencers, in particular, are often a better fit for eCommerce brands due to their lower cost and higher engagement rates with niche audiences. 

The key to success is treating your influencers as an extension of your brand. You’ll need to ensure that your influencers have access to comprehensive details about your products, including specifications, features, benefits, and any unique selling points. The more they know about what they’re promoting, the more confidently and accurately they can convey that information to their followers.

They’ll also need access to high-quality visuals that are consistent with your brand’s identity but allows for your influencer to express some creativity and individuality that highlights why you chose to work with this specific influencer. 

 

2. Communicate Your Brand’s Values to Create Authentic Customer Connections

Gone are the days when consumers merely sought products; now, they crave a connection with the heart and soul behind the brand, and if they don’t connect with your business’s message, they’re quick to abandon purchase in search for an organization that shares their views.

The Akeneo 2023 Global B2C Survey uncovered that two-fifths of consumers have declared their willingness to pay more for brands that proudly showcase their core values. And it’s not just a passing fad; we also found that these consumers are prepared to invest an average of 18% more for products that weave meaningful brand values into their very fabric. 

Whether it’s related to sustainability, social responsibility, diversity and inclusion, or other ethical aspects, brands need to ensure that their values and commitments are consistently communicated to customers, and social media is a great way to do so.

To effectively create an authentic connection with consumers, brands must do more than just hold these principles dear. They must consistently and transparently communicate them to their customers. Social media provides an exceptional platform for achieving this, such as partnering with Influencers  with a genuine commitment to the same causes, or running a campaign that amplifies your brand’s message and shows how you’re committing to the cause. The shared values between your brand and these influencers serve as a bridge, fostering a stronger and more authentic bond between your brand and your target audience.

2023 Holiday Season Strategy Guide

3. Customize your product content for different channels

Social commerce is not a one-size-fits-all strategy; it’s a multifaceted landscape that requires a nuanced approach. Just as you meticulously personalize content for various digital platforms like your eCommerce site or Amazon, the same level of customization should extend to different social channels. This level of adaptability is essential because each platform possesses its unique strengths and caters to distinct audience preferences.

Take, for example, the visual-centric world of Instagram. This platform thrives on captivating, high-quality images that tell a story. Therefore, to make a meaningful impact on Instagram, your content should be visually stunning, with an emphasis on striking imagery that aligns with your brand’s identity. This is where the art of storytelling through visuals can truly shine, drawing your audience into your brand’s narrative.

On the other hand, platforms like TikTok are all about fast-paced, on-trend videos that capture attention in seconds. To excel on TikTok, your brand needs to create short videos that are not just promotional but engaging and shareable. By aligning your content with the trends and humor that resonate with TikTok’s user base, you can successfully tap into this unique and rapidly growing audience.

The key to success in the world of social commerce is recognizing the diversity of each social platform and tailoring your content to align with their distinct strengths and audience preferences. 

 

4. Run social media specific campaigns to encourage following & cross-channel research

Social commerce is not just about crafting the right content for the right channel; it’s also about offering value to your audience. In today’s world, marked by a cost-of-living crisis, consumers are more conscious of their spending than ever. As a result, they prioritize deals and seek to maximize the value they get from their purchases. Running social media-specific discounts and campaigns can be a powerful way to attract and retain customers across different social channels as the allure of discounts and deals resonates deeply with cost-conscious consumers, making it a powerful incentive for them to engage with your brand.

These promotions not only encourage followers but also stimulate cross-channel research. By offering unique discounts or exclusive offers on specific platforms, you can entice users to follow your brand on multiple channels, enhancing your overall reach and engagement.

Diversification in your promotional approach can be equally effective. For instance, you can consider offering bundled products at a discount, appealing to consumers who are seeking a comprehensive solution at a reduced price. Alternatively, you can run promotions on items that have performed exceptionally well on different social channels. This tailored approach is designed to cater to each platform’s unique audience, recognizing that what resonates with one group of users may not be the same for another. In doing so, you demonstrate a deep understanding of your audience’s needs, reinforcing their perception of value and strengthening their connection to your brand.

Running social media-specific discounts and campaigns can be a strategic game-changer, not only attracting and retaining customers but also fostering cross-channel exploration. Whether through bundled products or platform-specific promotions, the goal is to provide tailored value that resonates with the diverse audiences present on various social channels, ultimately driving the success of your brand in the dynamic landscape of social commerce.

 

The Future of Social Commerce

Is TikTok Shop poised to take over Amazon any time soon? Of course not. But people don’t peruse and purchase on just one channel, which means your brand and products can’t just be on one channel, and it’s important to recognize that social commerce is not just a passing trend but an important channel where brands can authentically connect with their audiences.

This diversity in consumer behavior emphasizes the importance of an omnichannel approach for brands. While TikTok, Instagram, and other social commerce platforms play a pivotal role in your brand’s online presence, they are most effective when part of a broader, Product Experience (PX) Strategy. 

Social commerce is a force to be reckoned with. Brands that embrace an omnichannel approach, utilizing various platforms to cater to diverse consumer needs, are well-positioned for success. Social commerce is here to stay, and understanding its dynamic nature is the key to thriving in this ever-evolving landscape of online retail, especially as we gear up to face the busiest shopping season of the year.

Holiday Season Strategy Guide

Discover what it takes for brands to succeed this holiday season with tips & tricks from Algolia, Akeneo, BigCommerce, Unifai, and more.

Casey Paxton, Content Marketing Manager

Akeneo

Key Roles & Responsibilities for Crafting a PX Strategy

Product Experience

Key Roles & Responsibilities for Crafting a PX Strategy

Explore the critical roles and responsibilities essential for crafting exceptional product experiences. Dive into the world of Chief Product Experience Officers, Product Experience Managers, and Technical Product Experience Managers, and learn how they are revolutionizing the retail landscape with their innovative strategies.

Today, consumers are seeking more than just products; they are craving memorable interactions across numerous touchpoints from companies they can trust. This paradigm shift in consumer expectations has give rise to the need for dedicated professionals and teams who can champion the cause of implementing a Product Experience (PX) Strategy.

But what exactly does it take to build a successful PX Strategy, and who are the individuals who drive it forward? We’ve answered the former in this blog post here, but let’s dive into the latter and outline the instrumental roles and responsibilities of the jobs that make up a PX ecosystem through a fictional fashion retailer, Ziggy Corporation.

 

About Ziggy Corporation 

Ziggy is a visionary and globally recognized fashion retailer, redefining the way people experience fashion. With a robust in-store and digital presence, we curate cutting-edge fashion to inspire individuals worldwide. Our commitment to innovation, sustainability, and customer-centricity drives us to continually push boundaries in the retail industry. At Ziggy Corp, we believe that fashion is an art form, a statement, and a means of self-expression, and we invite you to join us in our journey of style, creativity, and global influence.

At Ziggy, our teammates are the driving force behind who we are and where we want to go as a company. We work every day to shape a first-class work environment and culture, which is rooted in our core values of Humility, Benevolence, Openness, and Innovation. We want our people to help us grow and to grow with us, and that’s why we do whatever it takes to equip our employees with everything they may need to make a tangible impact on themselves, the business and the company. 

 

1. Chief Product Experience Officer 

Job Description

We are seeking a visionary and strategic Chief Product Experience Officer (CPEO) to join our dynamic retail brand. As the CPEO, you will be responsible for shaping and executing our Product Experience (PX) Strategy, ensuring our products delight customers, and driving innovation and excellence across our entire product portfolio. You will play a pivotal role in defining the overall customer experience and strengthening our brand’s position in the fashion industry.

Responsibilities:

  • Product Experience Strategy: Develop and articulate a comprehensive PX Strategy that aligns with the company’s objectives and customer-centric values.
  • Innovation Leadership: Lead the charge in identifying market trends, emerging technologies, and customer insights to drive product innovation and differentiation.
  • Product Development: Oversee the end-to-end product development process, from ideation to launch, ensuring products are high-quality, customer-centric, and meet market demands.
  • Customer-Centric Approach: Champion a customer-first mindset across the organization, ensuring that customer feedback and preferences are at the forefront of product decisions.
  • Cross-Functional Collaboration: Collaborate closely with cross-functional teams, including design, marketing, engineering, and sales, to ensure alignment with product experience goals.
  • Data-Driven Decision-Making: Utilize data and analytics to make informed decisions, track product performance, and continuously improve the customer journey.
  • Brand Consistency: Ensure that the product experience aligns with the brand identity and messaging, maintaining brand consistency throughout the product lifecycle.
  • Omnichannel Integration: Lead efforts to seamlessly integrate the online and offline customer experiences, ensuring consistency and continuity across all touchpoints.
  • Customer Engagement: Develop strategies to engage and retain customers through exceptional product experiences, loyalty programs, and post-purchase support.
  • Team Leadership: Build and lead a high-performing product experience team, providing guidance, mentorship, and professional development opportunities.
  • Financial Oversight: Manage and allocate resources effectively to maximize return on investment in product development and customer experience initiatives.

Qualifications

  • Proven track record of success in a senior leadership role within a retail or consumer-focused organization.
  • Strong understanding of retail industry trends, customer behavior, and market dynamics.
  • In-depth knowledge of digital technology, e-commerce platforms, and digital marketing strategies.
  • Exceptional strategic thinking and problem-solving skills.
  • Demonstrated ability to lead cross-functional teams and drive collaboration.
  • Proficiency in leveraging data and analytics for decision-making.
  • Excellent communication and presentation skills.
  • Degree in business, information technology, marketing, or a related field (Master’s degree preferred).

Preferred:

  • Familiarity with MACH (Microservices, API-first, Cloud-native, Headless) and/or Composable Commerce.
  • Experience with Akeneo Product Cloud. 

PX Strategy Job Templates

2. Product Experience Manager 

Job Description

Join our dynamic retail brand as a Product Experience Manager, where innovation and collaboration drive success. In this role, you will be responsible for executing our product experience strategy by ensuring customer satisfaction, fostering innovation, and driving operational improvements across the Product Experience Management (PXM) process. You will help define the overall customer experience and play a pivotal role in strengthening our brand’s value within the fashion industry. 

Responsibilities:

  • Digital Commerce Excellence: Lead efforts to enhance the digital commerce experience, ensuring a seamless and user-friendly online shopping journey.
  • Supplier and Retailer Collaboration: Cultivate strong partnerships with suppliers and retail collaborators to streamline data exchange and enhance accuracy.
  • Product Taxonomy and Governance: Oversee and refine product taxonomy and governance to ensure the correctness and consistency of our product experiences.
  • Customer-Centric Approach: Help implement a customer-first mindset across the organization, ensuring that customer feedback and preferences are at the forefront of product decisions.
  • Cross-Functional Collaboration: Collaborate cross-functionally with design, marketing, engineering, and sales to align with product experience goals.
  • Data-Driven Decision-Making: Utilize data and analytics to make informed decisions, track product performance, and continuously improve the customer journey.
  • Brand Consistency: Ensure that the product experience aligns with the brand identity and messaging, maintaining brand consistency throughout the product life cycle.
  • Omnichannel Integration: Lead efforts to seamlessly integrate the online and offline customer experiences, ensuring consistency and continuity across all touchpoints.

Qualifications

  • Proven track record in digital commerce strategies and optimizing online shopping experiences.
  • Strong change management skills with a track record of implementing process improvements.
  • Expertise in building and maintaining product taxonomies and data governance. 
  • Proficiency in leveraging data and analytics for decision-making.
  • Experience collaborating with suppliers and retail partners within the fashion retail industry.
  • Exceptional strategic thinking and problem-solving skills.
  • Excellent communication and presentation skills.
  • Degree in business, information technology, or a related field (Master’s degree preferred).

Preferred:

  • Familiarity with MACH (Microservices, API-first, Cloud-native, Headless) and/or Composable Commerce.
  • Experience with Akeneo Product Cloud. 

 

 

3. Technical Product Experience Manager 

Job Description

Join our dynamic retail brand as a Technical Product Experience Manager, where innovation and collaboration drive success. In this role, you will be responsible for executing the technical components of our product experience strategy by leading the overall solution design for our product experience applications including system optimization, data management, and integrations throughout the Product Experience Management (PXM) process. You will help design, build and maintain the technical solutions that provide exceptional product experiences to our customers and strengthen our brand’s value within the fashion industry. 

Responsibilities:

  • Technical Strategy: Define and drive the technical architecture strategy to meet business goals, ensuring alignment with our business objectives, industry best practices and emerging technologies.
  • Solution Design: Collaborate with cross-functional teams to design robust and scalable digital solutions, including front-end and back-end systems, databases, and third-party integrations.
  • System Optimization: Continuously assess and optimize system performance and capabilities to meet evolving business needs.
  • Data Management: Oversee data architecture and data management strategies, ensuring data governance, availability, and compliance.
  • Cross-Functional Collaboration: Collaborate with various teams, including product management, IT, marketing, ecommerce, and others to ensure technical alignment with business goals. 
  • Integration: Manage the integration of various systems, including PIM, PLM, ecommerce, ERP, DAM, third-party APIs, and other tools.

Qualifications

  • Proven track record in technical product management within the retail or related industry.
  • Experience with building and maintaining system integrations and ETL (Extract, Transform, Load) processes.
  • Strong understanding of data management best practices around building and maintaining product taxonomies and governance. 
  • Proficiency in data analysis and the use of technical tools for decision-making.
  • Familiarity with Product Experience Management software ecosystem (ERP, DAM, PIM, CMS, Ecommerce, Syndication systems).  
  • Excellent communication and presentation skills.
  • Degree in computer science, information technology, or a related technical field. 

Preferred:

  • Familiarity with MACH (Microservices, API-first, Cloud-native, Headless) and/or Composable Commerce.
  • Experience with Akeneo Product Cloud. 

 

Paving the Path to a Bright PX Future

Here at Akeneo, we understand that the journey towards PX excellence is not without its challenges; in fact, many corporations may find themselves ill-equipped to support the full spectrum of these roles at the moment, and that is more than okay.

However, we firmly believe that every organization, regardless of its current stage of PX maturity, can start implementing a PX Strategy today. Even just incremental changes that enhance the customer journey, like improving the completeness and accuracy of your product information, is a step in the right direction.

You also don’t need to immediately go out and hire for all of these roles, like the Ziggy Corporation has. Your current team may already possess the skills and passion needed to support a PX Strategy, so it may make sense for you to harness their potential and provide them with the necessary tools and resources first.

While the roles we’ve outlined today are undeniably critical for PX excellence, their full integration may take some time. But with a customer-first mindset and a dedication to continuous improvement, any organization can join the league of brands that redefine product experiences and pave the way for PX excellence.

PX Self-Assessment

Discover where you are on the path to Product Experience Excellence and learn how our customer platform can help you support a PX Strategy.

Adam Beatty, Community Evangelist

Akeneo

How to Organize Your Business Around Product Experiences

Product Experience

How to Organize Your Business Around Product Experiences

Human interactions can often be overlooked in the era of AI and cloud computing, yet the success of a PX Strategy hinges on acknowledging the pivotal role of your teams and processes. Whether you’re building a comprehensive PX Org structure or streamlining roles, we’ve defined the four functions that will ensure your customers receive the exceptional experiences they deserve.

People still matter. The recent proliferation of automation, cloud computing, and AI has made this easy to forget. Afterall, a software application is straightforward; it does exactly what you ask and has no ego, opinion, or paid holidays.  In contrast, managing people can be messy, ambiguous, and difficult to quantify. This leads to many organizations forgetting about or de-emphasizing the importance of their employees as they execute their strategies. Managing Product Experiences is no exception to this. With so many different applications, architectural principles, and integrations, it’s easy to forget about the people that actually ensure customers get compelling product experiences.  So what people do you need in your PX organization?  Every organization is different. What remains the same, though, are the key functions that must be done by your internal teams to bring compelling product experiences to customers. Below we’ve broken down these 4 functions and included their overall purpose and responsibility, and we’ve included some example job titles we’ve seen within brands that help fulfill these functions.  Build your own PX Org structure by taking these functions and mapping them to your business.  Larger organizations may have multiple people within each function while smaller organizations may actually have one person fill more than one role.  So, let’s examine the four key jobs that need to be done to ensure the success of your Product Experience Strategy.    

1. Executive Sponsor

The Executive Sponsor is the primary stakeholder. They are responsible for developing the organization’s Product Experience (PX) Strategy, aligning it to the overall business’ objectives, and ensuring its timely execution. The sponsor should be able to exert control over all the cross-functional teams involved in the strategy.  Responsibilities:
  • Define and execute overall PX Strategy
  • Align PX Strategy to corporate objectives
  • Develop and monitor progress of OKR/KPIs
  • Ensure collaboration across teams
  • Remove blockers 
Titles: Chief Digital Officer, Chief Marketing Officer, Chief Technology Officer, Chief Product Experience Officer, Head of CX, etc.        

2. Manager of Applications & Integrations

This person is responsible for executing the technical components of the PX Strategy by leading the overall solution design for applications. This includes system optimization, data management, and integrations throughout the Product Experience ecosystem. Responsibilities:
  • Administer platform(s)
  • Manage integrations between systems
  • Design architecture
  • Data management (governance, migration, availability, compliance)
Titles: Solution Architect, Technical Architect, Developer, IT Director, Product Manager, Master Data Manager, Technical Product Experience Manager, eCommerce manager, etc.    

3. Product Experience Creator

This function is responsible for creating compelling product experiences within the organization. This includes gathering, enriching, and validating technical specifications, marketing copy, images and videos, regulatory information, and more. For manufacturers, this may include collaborating with product development and design teams. For distributors, it may include procurement teams working closely with suppliers.  Responsibilities:
  • Define Product Experiences
  • Develop or onboard new products
  • Convey Brand Values
  • Enrich Product Experiences
  • Translate and adapt content to different markets
  • Ensure products comply with local regulations
Titles: Content specialist, Marketing Manager, Brand Manager, Translator, Photographer, Product Engineering, Buyer, Procurement, Product Experience Manager, etc.    

4. Manager of Channels

Responsibilities: The Channel Manager is in charge of managing the downstream customer-facing applications and ensuring all product experience requirements are met. This includes managing applications and processes that support eCommerce, retail partnerships, print, customer support, mobile apps, in-store shopping experiences, or even distributor relationships. These individuals own their respective channels and must ensure the product information they’re getting meets their channel’s requirements. 
  • Manage Channel specific requirements
  • Manage Assortment 
  • Measure performance
  • Manage channel specific descriptions & SEO
  • Build Channel Experiences 
  • Customer Support
Titles: eCommerce Manager/Director, Key Account Manager, Digital Marketing Manager, Ecommerce Merchandising Manager, Support Manager, Distributor Relationship Manager, etc.  

People & Processes: The Backbone of Product Experience Excellence

In a rapidly evolving landscape of automation and technology, it’s crucial to remember that people are at the heart of delivering exceptional product experiences. The intricate nature of human interactions can often be overlooked in the era of AI and cloud computing. Yet, the success of a PX Strategy hinges on acknowledging the pivotal role of your internal teams. As every organization is unique, defining and embracing these key functions is essential for creating compelling product experiences.  Whether you’re building a comprehensive PX Org structure or streamlining roles in a smaller setting, these functions ensure that your customers receive the exceptional experiences they deserve.

PX Self-Assessment

Discover where you are on the path to Product Experience Excellence and learn how our customer platform can help you support a PX Strategy.

Adam Beatty, Community Evangelist

Akeneo

How a Product Experience Strategy Drives Cost Efficiencies

Product Experience

How a Product Experience Strategy Drives Cost Efficiencies

Discover the challenges of delivering consistent product experiences across diverse touchpoints and reveal how a well-crafted PX Strategy not only minimizes costs but also enhances agility, sustainability, and competitiveness. Explore the benefits of unified processes, smarter technology deployment, and improved employee satisfaction, and embark on a journey toward cost-efficiency and enhanced customer engagement.

Bringing a product record to life consistently across every customer touchpoint you sell on can be a complex, expensive, and time consuming endeavor. It requires integrating multiple IT systems, streamlining product enrichment processes, and a lot of cooperation between cross-functional teams.  Further compounding these challenges is the constant shift in consumer demand for things like personalization, sustainability information, and shopping experiences on the latest digital channels.  The most effective way to address the complexity of delivering product experiences is by developing a comprehensive Product Experience (PX) Strategy that considers the entire scope of the problem.  Unfortunately, many organizations don’t have a strategy and find themselves working in silos to manage each component of the product experience process independently. This decoupled approach leads to a lot of expensive “duct-tape” solutions that can include developing cumbersome homegrown solutions, relying on external resources for content generation, maintaining multiple sources of truth, or dedicating entire teams of employees to mind numbing revision and validation work. This disjointed solutioning adds a significant amount of cost to an organization that can sometimes be difficult to identify and even harder to eliminate.  Identifying and reducing costs is a critical part of any Product Experience Strategy. Below we’ve broken down the different costs that a Product Experience Strategy can help reduce and the key performance indicators (KPIs) you can use to track them.  Each business and industry is unique, so what works for one organization might not be relevant for another. Identify the costs that apply to your business and incorporate them into your own strategy, before considering how a PX Strategy can help drive profitable sales.  Content creation and maintenance costs: Reduce the cost in time and resources of developing, onboarding, and enriching news products through use of technologies like PLM, PIM, DAM, and AI. A centralized single source of truth with clear workflows and automation capabilities eliminates repetitive low value tasks and duplicative efforts and error fixing. AI and Supplier onboarding solutions are also important tools for reducing product costs.  
PX Strategy Reduces Cost of Content Management
Reduce technology deployment costs: Many organizations manage product experiences by developing homegrown systems, repurposing other software solutions to manage product data (e.g. ERP, MDM, eCommerce), or run duplicate solutions across brands or regions within the same company.  Investments in technology solutions for PIM, PLM, Syndication, DAM, AI, and Analytics allow you to create a single source of truth where you can build, manage, deliver, distribute, and track the performance of your product catalog in an efficient and scalable way. This means it’s cheaper to scale your catalog, onboard new users, add new channels, manage infrastructure costs, and integrate with other systems. Best-of-breed solutions follow MACH infrastructure principals (Microservices, API-first,Cloud-native, Headless) which provides the flexibility to be at the cutting edge of innovation. 
PX Strategy Reduces Cost of Technology Deployment
Customer Support: Enhancing product experiences means providing accurate and detailed product information that aligns with customer expectations and reduces product returns. It also reduces inquiries about product specifications and functionality. These two factors combined can lead to significant decrease in customer support calls and costs.  Supply Chain Forecasting: A Product Experience Strategy helps facilitate accurate supply chain predictions by centralizing and standardizing important product data that can be incorporated into planning and forecasting. Accurate forecasting can reduce a number of costs including spoilage, overstock or understock situations, carrying costs, and even labor costs.    Employee Experience and Productivity: A Product Experience Strategy typically means redeploying employees from low value to high value tasks and an improvement in employee satisfaction and retention. A 2022 Total Economic Impact (TEI) report done by Forrester on Akeneo PIM even found an employee retention benefit of $53.7k over 3 years. In conclusion, a robust PX Strategy is crucial for driving cost efficiencies in today’s dynamic market. By unifying processes, systems, and teams, this approach addresses costs related to content creation, technology deployment, customer support, supply chain forecasting, and even employee experience. Beyond cost reduction, it ensures agile operations, sustainable growth, and competitive advantage amid evolving consumer demands. 

PX Self-Assessment

Discover where you are on the path to Product Experience excellence and learn how our customer platform can help you succeed in your omnichannel strategy.

Adam Beatty, Community Evangelist

Akeneo

Introducing Supplier Data Manager

Akeneo News

Introducing Supplier Data Manager

Discover the features of Akeneo’s recently announced Supplier Data Manager, a simple and scalable portal that streamlines the collection, management, and enrichment of supplier-provided information and assets, ensuring efficiency and accuracy across the entire supply chain.

For retailers and distributors, one of the most formidable challenges faced is the need to gather vast amounts of data and assets from a number of different suppliers. It’s a complex puzzle of data points, visual media, and spreadsheets, exacerbated by the fact that each supplier has its own unique way of organizing and communicating data.

That’s why we here at Akeneo recently launched Supplier Data Manager: a simple, scalable, and collaborative way to collect product data from all your suppliers. Akeneo’s Supplier Data Manager streamlines the collection, management, and enrichment of supplier-provided information and assets, ensuring efficiency and accuracy in this critical process.

If you want to learn more about the announcement, you can read the formal press release here, or continue on to learn more about why we built Supplier Data Manager, what it does, and how you can learn more.

 

Supplier Data: The Problem

Retailers and distributors need to collect information and assets on thousands of products from hundreds of suppliers. That’s an operational and logistical challenge because:

    1. Those suppliers all organize their data in their own way.
    2. Retailers and distributors have varying degrees of influence over their suppliers.

 

The Supplier Data Onboarding Challenge

 

The Impact

Without an efficient way to collect supplier-provided product data, companies often experience the following pain points:

Slow time-to-market – New product launches and updates to existing product content are delayed because the process of collecting information and assets is inefficient.  

  • What’s the impact? Missed revenue.

Low quality data & lack of governance – Without proper guardrails in place, retailers may be stuck dealing with massive spreadsheets full of low quality, unstructured data.  

  • What’s the impact? Manual effort and a poor customer experience with missing or incomplete data.

Inefficient communication – Retailers and suppliers often struggle to communicate effectively to share requirements and/or request additional information. 

  • What’s the impact? Poor supplier experience.

 

The Workarounds

Without a solution like Supplier Data Manager, retailers are most likely to rely on inefficient workarounds including:

  • Manual effort: Teams of individuals are subjected to the arduous task of manually reviewing and keying in product content from spreadsheets, and spend thousands of hours emailing and calling suppliers to complete missing attributes. This leads to a lack of visibility or traceability on both sides. 
  • Home-grown solutions: Some larger organizations attempt to build their own bespoke solutions to collect data from suppliers. Not only is this an expensive and time-consuming investment, but these home-grown solutions often fall short of delivering desired results for both suppliers and retailers.

 

The Solution: Akeneo Supplier Data Manager

Akeneo Supplier Data Manager provides an easy-to-use portal that enables retailers and distributors to collect, manage, and enrich supplier-provided product information and assets.

Akeneo Supplier Data Manager is available as an add-on module within Akeneo PIM, and helps simplify supplier data onboarding, driving measurable benefits and efficient communication.

Supplier Data Manager

Key Capabilities

Supplier Data Manager makes it easy for you to configure your suppliers, have them upload product files or fill out a template, and map the data to Akeneo PIM for easy import.

Manage your suppliers at scale

Easily add suppliers directly within the PIM UI, either manually or via bulk import. Empower designated contributors with secure, dedicated portal access via email invitations.

Collect the latest product data from suppliers

Enable your suppliers to easily upload their most up-to-date product data spreadsheets using a simple drag-and-drop user interface.

Enrich products with assets

Suppliers can share media files to enrich the product information already collected. Retailers can convert media into assets and link them to PIM products with a single click.

Request specific content via templates

Provide suppliers with templates to ensure you receive precisely the data you need. Avoid back and forth with suppliers by leveraging guidelines and mandatory attributes from the start, reducing excess back-and-forth communication.

Comment directly in the portal

Collaborate more efficiently with suppliers directly in the portal by giving them visibility into file history and status updates, and leaving them comments about specific products, attributes, or images. 

Import supplier data into the PIM

After collecting product data and collaborating with suppliers to get what you need, it’s simple to map everything to your PIM data structure, leverage basic rules to clean and normalize the data, and import everything with just the click of a button.

 

The Benefits

A simple, scalable, and collaborative way to collect product data from all your suppliers drives measurable benefits such as:

  • Improved collaboration with suppliers: Retailers can centrally manage all supplier interactions and build stronger relationships with improved visibility and effortless communication directly in the portal.
  • Accurate and complete product content: Retailers can efficiently collect the most up-to-date content from suppliers and request specific information via templates.
  • Faster time-to market: With supplier-provided data readily available in Akeneo PIM, retailers can expedite product launches and updates.

 

Want to see it in action?

Are you ready to witness Supplier Data Manager in action?  If you’re a current Akeneo customer, Join us for Supplier Data Manager in Action or reach out to your Customer Success Manager to learn more.  If you’re not yet an Akeneo customer, you can request a demo and an Akeneo expert will walk you through the solution.

Supplier Data Manager

Reach out to an Akeneo expert today to see how we can help you improve your supplier relations and streamline your product information processes to provide stellar customer experiences.

Tom Bennett, Senior Product Marketing Manager

Akeneo

Seamless Product Experiences: The Integration of AI

Artificial Intelligence

Seamless Product Experiences: The Integration of AI

Explore the transformative power of AI in creating seamless, consistent product experiences across all channels in this guest post by Unifai CEO and founder, Jesse Creange. Discover how AI is reshaping marketing excellence and team efficiency in today’s retail landscape.

In today’s ever-evolving digital landscape, the quest to create seamless product experiences has become an undeniable imperative. As consumers traverse a multitude of channels, demanding consistency and excellence, businesses find themselves at a crossroads. While online channels have grown in popularity, physical stores still drive the majority of sales. Even when buyers don’t make their purchases in brick-and-mortar stores, they expect in-person salespeople to be knowledgeable about online offerings. Print, despite the digital advancements, remains relevant, as do the vital roles of social media in all fields. Support channels play a central role, and there’s nothing more frustrating for a customer than dealing with a support agent who is not up to date on product information. In summary, the era of selling products with just a barcode, a price, and an image is over; consumers are demanding more. In this article, we will explore the inevitable importance of artificial intelligence (AI) in the world of creating compelling product experiences for consumers across all channels. We will demonstrate how AI is becoming an indispensable player in fulfilling the requirements for PX consistency, team efficiency, and overall marketing excellence in this complex and ever-changing landscape.  

I. The Challenges of Omnichannel

Businesses are increasingly turning to omnichannel strategies to reach their customers. However, behind this seemingly promising strategy lies numerous challenges. According to recent research, a striking statistic has emerged: 87% of customers will no longer make a purchase at a store where they encounter inaccurate information Let’s delve into the world of omnichannel challenges that many businesses seeking a successful customer experience face.

1. Customer Consistency

One of the first challenges of an omnichannel strategy is creating a consistent customer experience across all of these distinct channels. In today’s interconnected world, consumers have come to expect a seamless and unified experience when engaging with a company, irrespective of the channel through which they choose to interact. Whether it’s browsing a website, using a mobile app, engaging on social media platforms, or visiting a brick-and-mortar store, customers desire a harmonious journey. Here are five crucial facets that underscore the importance of customer consistency in an omnichannel environment:
  • Unified Brand Image: Maintaining a cohesive and consistent brand identity across all channels is crucial for building trust and confidence among customers.
  • Personalization without Disruption: Effective personalization should enhance the customer experience without feeling intrusive or disruptive. Striking the right balance is essential.
  • Inventory and Stock Availability: Real-time inventory management is necessary to meet customer expectations of product availability, whether shopping online or in-store.
  • Omnichannel Customer Support: Seamless customer support that bridges digital and physical channels is vital. AI-powered solutions can help deliver a consistent support experience.
  • Streamlined Checkout and Payment: A smooth, secure, and consistent checkout and payment process is essential for customer satisfaction, regardless of the channel they choose.

2. Tailoring Descriptions for Each Channel

One of the other core elements that demand special attention is the art of tailoring product descriptions to fit the unique characteristics and nuances of each channel. As indicated by a recent study, “88% of respondents said that accurate, complete, and relevant product data is very important to create the best product experience.” PXM Is The Key To Delivering Best-In-Class CX, Forrester Report With the emergence of various channels, customers seek consistency across the entire experience offered by the seller. Consistency in the product experience isn’t limited to your main website or flagship store; customers expect it everywhere. It’s not about creating a one-size-fits-all product description for every channel; rather, it’s about crafting the perfect description tailored to the unique characteristics of each channel. The practice of customizing descriptions for each channel underscores the understanding that every aspect of your omnichannel strategy possesses distinct nuances and requirements. Adapting product descriptions to suit these variations not only elevates the customer experience but also enhances the likelihood of resonating with your audience, fostering engagement, and ultimately driving sales. 

3. International Presence

When a company aspires to expand internationally while offering a consistent product experience, it faces a significant challenge. This challenge primarily manifests through the necessity to adapt its approach to each market while overcoming obstacles related to cultural differences, languages, and purchasing habits. Language Barrier and Standardization of Product Information One of the initial challenges is linguistic diversity. Each country has its own language, which means that product information must be accurately translated to reach the target audience. However, translation isn’t limited to mere word conversion; it must also consider cultural differences, units of measurement, wordplay, and local expressions to avoid misunderstandings and ensure the message is well understood. Adapting the Product Experience to Each Market Each international market has its unique characteristics concerning buying habits, preferences, and consumer behavior. For example, what works in a Western market may not be effective in Asia. It’s essential to adapt the product experience to each market to meet local needs and expectations. The question remains, what tools and methods are required to succeed in addressing the omnichannel challenges while maintaining a respected customer experience?  

II. Technology Follows the Trend in the Shadows

As businesses embrace the omnichannel approach, their technology infrastructure has undergone a rapid and substantial transformation. A multitude of software solutions, each catering to specific facets of the omnichannel experience, has been integrated into the ecosystem. These include Product Information Management (PIM) systems, eCommerce platforms, Enterprise Resource Planning (ERP) software, search engines, support platforms, Product Lifecycle Management (PLM) systems, and the marketplaces they operate, to name just a few. The consequence of this tech proliferation is that the number of Software as a Service (SaaS) solutions consuming data for brands and retailers has surged exponentially, sometimes multiplying by factors as high as 14.  The work involved in managing this extensive tech stack often becomes a daunting challenge. Traditional individual systems, designed to centralize product information, sometimes struggle to cope with the sheer complexity imposed by the multitude of operations required.  As an example, let’s consider just one aspect: Product attribute enrichment. Within the “collect” phase, which is just a fraction of the overall process, you might have to deal with 5,000 SKUs per month, each with 100 attributes per family across 78 different families. The result is a staggering 39 million possible operations, illustrating the immense intricacies involved in managing product data.
Product attribute enrichment example
  In this environment, the efficiency and effectiveness of your technology stack become paramount. Navigating this tech landscape requires a strategic approach that balances specialization with integration, streamlining workflows, and harnessing the power of AI and automation to manage the complexity efficiently. In the pursuit of seamless product experiences, technology becomes not just a supporting actor but a central player in shaping the omnichannel narrative.  

III. Where Does AI Come In to Achieve PX Maturity?

Artificial intelligence, when rigorously trained and closely monitored, can transform into well-trained experts specializing in managing and enhancing product data. These AI systems, whether based on advanced language models like LLM (Large Language Models) or other AI technologies, become instrumental in ensuring consistency across channels, software platforms, languages, and more. Here’s how AI emerges as a game-changer in enhancing the product experience:

1. Collecting and Cleaning Product Data

One of the ongoing challenges faced by companies is the collection, categorization, cleansing, and completion of basic product data. Without clean and accurate data as the foundation, it becomes nearly impossible to execute a robust product experience strategy. This process is often time-consuming and prone to errors when handled manually. AI applications, driven by deep learning algorithms, step in to automate and streamline this crucial phase. These AI systems can efficiently collect data from various sources, categorize products accurately, clean and normalize the data, and ensure that it meets the required standards. This not only saves time and reduces errors but also allows businesses to maintain a consistent and up-to-date product database. The role of clean data as the bedrock of a successful product experience strategy cannot be overstated, and AI plays a pivotal role in achieving this fundamental prerequisite.

2. Enriching Product Information

Companies that use a modern PIM to centralize comprehensive, accurate, and properly categorized product data are well-positioned to leverage Gen-AI applications to help them generate compelling and channel-tailored product descriptions. These AI systems can generate compelling and well-formatted product descriptions based on the available data. They can also be fine-tuned to be SEO-driven, ensuring that product descriptions are not only appealing to customers but also optimized for search engines. This dual benefit enables businesses to not only capture the attention of their target audience but also enhance their online visibility and discoverability, further boosting the effectiveness of their product experience strategy.

3. Translating Product Content

Once companies have cleaned and enriched product data in their PIM, they can leverage AI-driven translation tools to efficiently translate and adapt their content for different markets and languages. This not only accelerates the localization process but also ensures that product information remains consistent and culturally relevant across regions.  
  In conclusion, AI emerges as a driving force in achieving PX maturity by automating and optimizing critical aspects of managing product data. From data collection and cleansing to content generation and translation, AI technologies empower businesses to deliver a consistent, engaging, and localized product experience across diverse channels and markets. Embracing AI in these areas not only enhances efficiency but also contributes to the overall success and growth of an omnichannel strategy. This article was written as a guest blog for Akeneo by Unifai CEO, Jesse Creange.

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