digital product data & digital customer experience

Digital Product Data

&

Digital Customer Experience

Kees Jacobs


Consumer Products & Retail

‹#› Copyright © Capgemini 2015. All Rights Reserved

Consumers are not loyal anymore to a single channel but to an experience

across channels !


New channels and changes in customer behavior allow retailers and CP companies

to interact with customers in new ways

Online store

Social media

Direct mailing

Loyalty programs

Online services

Mobile apps

Customer service

Mobile

In-store media

E-mail

Clubs

Technology The opportunity Potential Benefits Early Adopters

Mobile promotions &

coupons

• Can help drive a sense of immediacy and desired

behavior. E.g. time limited coupons, personalized coupons

• Drive foot traf fic

• Engage and build loyalty

Location-Based Services

• Companies can use geo-fencing around their/ competitor

stores

• Help locate the nearest store, product


• Shopper convenience

Inventory Checks

• Can help bring shoppers in f rom out-of -stock competitors

• Mobile inventory check can help capture undecided

shoppers

• Up-sell/ Basket Expansion

• Order before arriving

• Increased sales

Smart Shopping Lists • Better understand consumers’ shopping & buying habits• Engage and build loyalty

• Improved personalization

Mobile Scanning

• Allow shoppers to scan QR codes for reviews, ratings &

product details

• Product videos / how-to guides aid in decision making



Weekly Ads• Mobile ads can create convenience for loyal customers

• Shopping list linked to the ads




Loyalty/ Reward Program • Mobile access to loyalty program can create convenience




M-commerce

• Customers willing to purchase using mobile if procedure is

secure

• Technologies like NFC are mature for mainstream

adoption

• Quick check-out

• Paperless transactions



Agility is needed to quickly adapt to key changes in product data management

Key trends affecting product data

GS1 and data pool development

Regulatory changes

Reviews (experts, peer-to-peer)

Product identification (QR, RFID, NFC)

Growth of in-store digital medias

Consumer demand for product information

Omni-channel targeted marketing

Growth of online stores & services

Traceability

Customizable products

Increased service sales

Omni-channel campaign management

Local sourcing

Device optimization

... and especially to an increasing need of customer relevancy in communication


Capgemini’s study on Digital Product Data Visibility shows significant room for

improvement

• Evaluate how well product data is visible in retailers’ and CP companies’ digital channels

• The study covers 41 leading retailers and 21 consumer products companies globally

• The online sites were assessed through 13 key product data attribute dimensions

Scope of the study


13 different product data attributes were identified for analyzing product data

visibility in retailer digital channels

6

*These are functional aspects that may not be under PDM but are relevant for product visibility and have been considered for this framework

PRODUCT DATA ATTRIBUTES

PRODUCT NAME/BRAND

1

SPECIFICATIONS

2 INGREDIENTS/ FEATURES

3

MANUFACTURER

4

PACKAGING

5

VISUAL

6 SEARCH ATTRIBUTES

7 USAGE INSTRUCTIONS

8 CERTIFICATION/ STANDARDS

9

LANGUAGE

10

PRICE*

11 PRODUCT AVAILABILITY*

12 CUSTOMER RATING*

13


We have defined three maturity levels from “Basic” up to “Leader” for all product

key data attributes

7

BASIC

• The “bare minimums” of product data, based on a must-have level of product data visibility for starting online/digital activities

ADVANCED

• Companies at this level have an advanced level of product data and provide a better than average customer experience across the different product data visibility attributes

LEADER

• Companies at this level have a leading edge product data proposition and are considered best-in-class in their category with well-developed customer experience

Leve

l 1:

B

asic

Le

vel 2

:

Ad

van

ced

Leve

l 3:

Le

ader


Ingredients/ features

Ingredients/features is an important attribute in retailer digital channels

as shoppers may consider it a “must have” in purchase decision

8

• No information or only ingredients presented

• Ingredients and nutritional information available

• Detailed information on product page and icons for easy identification

DESCRIPTION: • Ingredients and nutritional information, also icons for easy identification of product features

BA

SIC

AD

VA

NC

ED

LEA

DER

Leading practice companies typically have: MATURITY LEVEL:

• Detailed information on product features, ingredients, nutritional and storage information are available for each product

Product life guarantee

• Quick view icons pertaining to product features/ description

Source: (a) Capgemini analysis; (b) www.peapod.com;

INGREDIENTS / FEATURES

3

Example

http://en.wikipedia.org/wiki/File:PeapodLogo.png


With stricter ongoing regulatory developments, retailers will be obliged to

inform consumers with detailed information on ingredients /nutritional value

9

• Today’s consumers are very interested in the nutritional value of the products making this attribute critical for CP companies and retailers

• 42% of retailers and 57% of CP companies analyzed report the nutritional value of the products on their websites

• Best practice is to also report the Guideline Daily Amount (GDA) values of the product to facilitate the shopping experience

• Many retailers and CP companies also use other dietary and allergen information like “no added sugar”, “free from artificial sweeteners” etc.

• Product ingredients and allergens are also important search attributes and should be added as flexible dimensions to the search feature

• Finding suitable products is easier when shopper can start the search by ticking the relevant attributes, e.g. “no gluten”, “no lactose” etc.

• Leading companies also use their own icons to facilitate the shopping process to indicate e.g. light, non-lactose and low in salt products

• For example, Waitrose provides detailed information on ingredients and nutrition, along with icons for easy viewing

• Morrison’s has a nutrition tool to help shoppers identify products that suit their nutritional needs

Insights:

Ingredients / features

Source: (a) Capgemini analysis; (b) www.waitrose.com; (c) www.morrisons.co.uk;

NOTE: For this study, we have analyzed a total of 41 retailers, and 21 consumer product manufacturers globally.

INGREDIENTS / FEATURES

3

43.9 41.5

14.6 14.3

57.1

28.6

0

10

20

30

40

50

60

70

80

90

100

Basic Advanced Leader

Retailers CP companies

RESULTS OF THE STUDY (%):


1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

Ave

rage

Distribution of retailer average scores

Only few leading players reach higher averages and score well in many different

areas of product data visibility – all companies have opportunities for development

10

Average of retailer averages (1.35)

• Average retailer score is 1.35 – there is a lot of space for improvement

• Only two leading players reached average of 2,00 or higher

• Results are fragmented – many retailers score well on some attributes and poorly on others – all have something to improve

• Low scores are typical for companies with only a few years of experience from online grocery retailing

• As the industry matures, competition becomes tighter, benchmarks rise quickly and companies need to invest in better customer experience


• Icons for easy product identification

• Manufacturer information & country of origin

• Information on external standards for selected products

• Ocado offers customers cooking recipes on the product page

• Recycling information for the package

• Information on special diets, allergens and artificial colors and flavourings

• Special prices and promotions (“Buy 4 for2$”)

• Most comprehensive product data available for private labels

Four leading players score very differently with on the various variables

• Non-food capabilities leveraged also to grocery

• Detailed product specifications

• Engages customer with product reviews

• Advanced search functionality

• Operational ERP integration - product availability

• Leader in ethics - certifications marked well

• Detailed product description for enhanced shopper relevancy, including ingredients, dietary and nutrition information

• Provides link to manufacturer website

• Advice on how to use & store products

Product data attribute

Oca

do

Sain

sbu

ry

Wai

tro

se

Wal

mar

t

Name / brand 1 3 1 1

Specifications 2 2 1 2

Ingredients / features 3 2 3 2

Manufacturer 3 3 1 1

Packaging 3 2 3 1

Visual 2 1 2 2

Search attributes 1 1 2 2

Usage instructions 3 2 3 2

Certification / standards 2 3 2 2

Language 1 1 1 1

Price 3 3 3 1

Product availability 1 1 1 3

Ratings 2 2 1 3

Average 2,08 2,00 1,85 1,77


When looking at attribute average scores, CP companies seem to be managing

product data visibility better than retailers

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

Ave

rage

sco

re

Retailers CP companies

• Largest differences are in presenting brand, ingredients/features, manufacturer and usage instructions

• Best retailers should learn to leverage manufacturer capabilities in these areas

• Interestingly, retailers score higher in product ratings and certifications


• CP companies score significantly better in presenting brand & story telling

• Majority of retailers present product name and brand only in plain text

• CP companies are also better in presenting ingredients/features

• However, also some retailers reach Advanced and Leader –levels

• Over half of CP companies reach the Leader level in usage instructions

• Retailers are also following and increasing usage instructions

Most significant differences are found in presenting the product name/brand,

ingredients/features and usage instructions

PRODUCT NAME/BRAND

1

INGREDIENTS/ FEATURES USAGE INSTRUCTIONS

3 8

87.8

7.32

4.88

19.0

80.95

0.0

0.0 20.0 40.0 60.0 80.0 100.0

1

2

3

CP companies Retailers

46.3

39.02

14.63

14.3

57.14

28.6

0.0 20.0 40.0 60.0 80.0 100.0

1

2

3


53.7

39.02

7.32

33.3

14.29

52.4

0.0 20.0 40.0 60.0 80.0 100.0

1

2

3



Leading retailers for this study come mainly from the UK where online grocery

retailing has grown fast and is already a significant business

Geographical division of scores

• Most of leading retailers in presenting product data in digital channels operate in the UK – examples include Ocado, Sainsbury’s and Waitrose

• Many online grocery stores succeed very well in multiple product data attributes and offer clients advanced digital shopping experience

• The leading position correlates well with the success and size of online grocery stores in the UK

• Also Meijer, Peapod and Walmart, based in USA, are among the top companies to best present product data in online channels

• Other European scores are significantly lower

• Online grocery retailing is still in relatively early maturity and small in size in these countries

• Most companies are in piloting stage, working with “bare minimums”

Insights:

BASIC ADVANCED LEADER

Legend:


Many retailers start small but need to advance fast to offer next levels of digital

shopping experiences

• When starting online operations, first thing is to get the basics in place

• Critical capabilities in creating the online shopping experience are:

• Obtain key product information from manufacturer/data pool(s)

• Get product pictures in place

• Build robust & flexible PDM-solution

• Enhance product information beyond the data in the product package

• Use storytelling to create compelling shopping experience in selected categories

• Build capabilities for producing visuals and and storytelling

• Enhance shopping experience with advanced search and product certifications

• Create competitive advantage by superior online experience & value add services

• Ratings add value to customer

• High-quality usage instructions are also an area where to build value to customer

• Innovative customer interaction also presents opportunity for learning

SPECIFICATIONS

INGREDIENTS/ FEATURES

PRICE

SEARCH ATTRIBUTES

PRODUCT AVAILABILITY

RATINGS

USAGE INSTRUCTIONS

PRODUCT NAME/BRAND

VISUAL AND MULTIMEDIA

CERTIFICATION/ STANDARDS

PACKAGING

MANUFACTURER

MULTI-LANGUAGE

STORYTELLING VIDEOS

Basics in place Leading edge Enhanced shopper experience


As part of their digital transformation, companies need to develop their product data

management capabilities

Digital channel -enabled content

• Additional languages

• Package info

• Consumer oriented marketing texts

• Pictures

• Channel optimized content

• Videos

• Audio

Typical path in digital product data management

Improved quality

• Consumer readability

• Logic checks

• Continuous updating

• Reduction of manual and redundant steps

Enriched master data

• Classifications

• Product attributes

• Regulatory requirements

• Scored attributes

• Recipes • Marketing

assets

• Promotion management

• Packaging

• Traceability

Key links to other areas:

Targeted marketing parameters

• Targeting parameters

• Segment specific marketing texts, pictures & content

Traditional master data

From wholesale/retail perspective… ...to consumer perspective

• Campaign management

THANK YOU !

Kees Jacobs


Consumer Products & Retail

[email protected]

digital product data & digital customer experience

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