C U S T O M R E S E A R C H b y k a r a r o m a n o w

3 2 cgt | may 2015 | consumergoods.com consumergoods.com | may 2015 | cgt 3 3

Master data management has always been an important un-derlying foundation for B2B e-commerce, but as consumers move online, it is even more critical that branded product data is complete, consistent, and accurate across all platforms to sup-port B2C e-commerce as well. This month, CGT partners with Gladson to take a look at how consumer goods (CG) manufac-turers are managing item data and where that information is most needed to meet consumer and retailer demand.

CG companies believe that consumers look to three primary sources for product data: brand websites, word of mouth, and retail websites (websites include corporate sites as well as social media). We expected smaller companies to rely on word of mouth more than their larger counterparts, which they do, but the difference was less than 10 percentage points. With the reliance on online data sources by consumers, organizations are challenged to keep product content current. Lack of internal resources to maintain item data is the top challenge cited by 57 percent, followed by the pace of updates at 45 percent and the sheer volume of updates at 43 percent.

One of the ways manufacturers are creating a more engaging online shopping experience is by providing additional product content on corporate and retail websites. Interestingly, consider-ing the rise of direct to consumer and retail shopping platforms, more data is available on brand websites than on retail sites. This is especially true for 63 percent of companies over $10 billion in rev-enue who only provide more product images on their own sites.

Brand owners are striving to better engage shoppers, and the top initiative to meet that goal involves retailer collabora-tion. In fact, 38 percent of those surveyed believe increased collaboration with retailers will help better engage shoppers and that number jumps to 63 percent for companies over $10 billion in revenue. Several initiatives are being implemented in partnership with retail customers to improve the customer experience, and all are fairly close in priority. Market research is slightly ahead at exactly half our respondents, but the other four projects are within 3 percentage points of each other and include digital promotions, improved planogram compliance, store specific assortments and store optimization.

Lastly, we asked about the current and future use of virtual reality to enhance shopper experiences at retail. We found a large discrepancy by company size, with 88 percent of compa-nies over $10 billion likely to use virtual reality, while smaller companies are not planning on leveraging the technology. As benefits emerge, we expect the use to become more widespread in companies of all size.

Current and Consistent Product DataCritiCal for B2B and B2C E-CommErCE

expert perspective By Susan Sentell, CEO and President, Gladson

Excellence in Engagement and Execution Is Driven by Consistent Informationas the shoppers’ path to purchase has become dynamic and circuitous in nature, predicting how, when and where a shopper will engage with a brand is unpredictable, at best. But what we do know is that consumers’ expectations for brands involve getting what they want, when they want it. that expectation doesn’t change based on where the interaction takes place; shoppers expect brands to meet their needs both in stores and online.

While there’s no magic formula for delivering the ideal brand experience across all touch points to all shoppers at all times, one fact remains: operating off a consistent base of product in-formation can dramatically increase a brand’s ability to meet and exceed shoppers’ expecta-tions. When a CG manufacturer leverages a consistent foundation of product information for all B2C and B2B processes, it puts itself, and its trading partners, in a better position to satisfy shoppers, increase sales and realize tangible operating efficiencies.

from a shopper engagement perspective, accurate and consistent product information online is no longer a nice-to-have – it’s a must. Shoppers are researching products on digital devices before they go to the store and even while at the store, and brands that are absent digitally will end up absent from shoppers’ carts.

once a shopper has engaged with a brand online and has entered the store with the intent to buy, the in-store brand experience needs to be just right to reach a sale. from space management to on-shelf availability to in-store merchandising, product information is crucial to successful in-store execution, a fact that becomes apparent at the moment of truth.

meeting shoppers’ expectations in stores and online is going to get more complex. With fulfillment options evolving including buy online, pick up in-store, category selections contracting at the store and expanding online, and digital promotions significantly impacting in-store de-mand, manufacturers’ ability to integrate B2B and B2C and deepen retailer collaboration is imperative. the first step to increased integration and col-laboration is a consistent base of product information.

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full research report.

Challenges in keeping online product data current Where do consumers get information about

your products?

38% believe increased collaboration with retailers will help better engage shoppers...

...that number jumps to 63% for companies over $10 billion.

Corporate website, social media32%

Friends, personal social media30%

Retail websites27%

Newspapers/ magazines05%

Traditional advertising04%

Third parties (ie: bloggers)02%

0 10 20 30 40 50 60

Lack of internal resources to create, host, maintain

Pace of updates

Sheer volume of platforms

Lack of a single repository for product content

57

45

43

27

25

Lack of internal resources to distribute content externally

57%

45%

43%

25%

27%

0 10 20 30 40 50 60

Lack of internal resources to create, host, maintain

Pace of updates

Sheer volume of platforms

Lack of a single repository for product content

57

45

43

27

25

Lack of internal resources to distribute content externally

57%

45%

43%

25%

27%

Multiple responses permitted

61%49%

57%40%

54% 47% 36% 28%30%30%

Digital

coupons

Expanded

product

details

Video

Value

added

content

(recipes,

product

reviews)

10 20 30

10 20 30 40 50 60

more

product

images,

views

Which key initiatives are you partnering with retailers to deliver better customer experience?

Market research

Digital promotions

Improve planogram compliance,shelf availability

Store optimization

50

44

44

41

41

Store specific assortments

0 10 20 30 40 50

50%

44%

44%

41%

41%

Market research

Digital promotions

Improve planogram compliance,shelf availability

Store optimization

50

44

44

41

41

Store specific assortments

0 10 20 30 40 50

50%

44%

44%

41%

41%

LarGE COMPaniES OVEr

$10Bprovide additional product images on their own websites

NONE do on retail partners’ websites.

BUT

Corporate website

retail partners’ website

What types of enhanced online content do you provide? Multiple responses permitted