Assortment - The Key to Meeting Customer Expectations
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Image yourself in the shoes of an average consumer. Whether you’re shopping online or in a store, you’ll likely want a lot of details about the item you intend to purchase. You’ll expect a wide variety of styles, reasonable prices and robust product details before making a move. If you buy the product online, you’ll expect it to be shipped no later than one or two days after your purchase. Today’s consumers are doing the research; they demand robust product information prior to making a purchase.
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Assortment - The Key to Meeting Customer Expectations
- 1. Assortment The Key to Meeting Customer Expectations © 2015 SPS Commerce 1
- 2. Everyone needs item information © 2015 SPS Commerce 2 What the buyer searches for and buys What the planner forecasts What the merchandiser markets Why the consumer returns What is shipped or stocked in a store What the consumer searches for and buys the item is:
- 3. Omnichannel brings new challenges and opportunities © 2015 SPS Commerce 3 Marketplaces have evolved from hundreds of products in store to thousands of products online Suppliers have a bigger opportunity to market their products, but they have to provide more item detail
- 4. Consumer expectations © 2015 SPS Commerce 4 Plenty of item DETAIL Limitless product CHOICES & VARIATIONS COMPETITIVE PRICES Faster order FULFILLMENT
- 5. E-store experience must exceed in-store experience © 2015 SPS Commerce 5
- 6. Robust item information is key to consumer decisions © 2015 SPS Commerce 6 Differentiating yourself from the competition Enhancing collaboration with trading partners Meeting demands of a faster, more nimble supply chain Increasing sales and overall product awareness
- 7. Assortment’s impact on omnichannel © 2015 SPS Commerce 7 • Product visibility • Search Engine Optimization (SEO) • Social media presence Awareness • Federal/state regulations • Hazardous/transport restrictions Compliance • Shipping costs for consumers • Warehouse staffing • Rate of returns Supply Chain
- 8. © 2015 SPS Commerce 8 Retail is ill-prepared for the fundamental shift in consumer behavior
- 9. Current state stats © 2015 SPS Commerce 9
- 10. %store & distribute product information via a spreadsheet
- 11. %of retailer item data is incorrect
Editor's Notes
- Suppliers have control over how their brand is marketed
- Think of yourself as a consumer. Whether you’re shopping online or in a store, you’re no doubt wanting a lot of detail about the item you’re considering purchasing. You expect to have a wide variety of styles from which to choose, as well as good prices. And if you buy the product online, you’re going to expect it to be shipped no later than a day or two of your purchase, and to have it in your hands within the week.
- We have evolved to building around the user versus around a store. Omnichannel story – allowing the user to buy whatever wherever. Why is reverse logistics so hard? Because current infrastructure was not built around a consumer who is wanting better, faster, cheaper and more personalized versus building for a store which is static. Go to the store. Try on a dress. Ex. "Studies have shown that an average of 4% to 6% of all retail purchases are returned, costing the industry about $40 billion per year.” – 2005 forbes and 2013 a third of all e-sales get returned Data completeness and accuracy is an issue – suppliers are required to provide all this extra information that was never built into their data models or business processes If you think about evolving data models whether it be order management models like dropship or product catalogs or item data – the evolution is happening to tailor needs of a customer not a store but the engines were designed for the store. For product data, not only store the attributes but also associated meta-data like Photos, to click through behavior and purchase history Multi-dimensional data
- This number is alarming… and exciting because it provides US with an opportunity to help this 64% Retailers and suppliers believe attributes are important. BUT they are NOT in agreement about how to share and manage item data AND understand it from the perspective of the consumer. Imagine the errors…Imagine the time spent… ATTRIBUTES are best managed when done in COLLABORATION with suppliers & retailers.
- No wonder