Capgemini Digital Product Data Study


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All-Channel Experience: Digital Product Data

How to Enhance the Online Shopper Experience with Improved Digital Product Data

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Capgemini Digital Product Data Study

  1. 1. Consumer Products and Retail the way we see itAll-Channel Experience:Digital Product DataHow to Enhance the Online Shopper Experience withImproved Digital Product Data
  2. 2. New channels, social networking digital channels. At the minimum, and technological developments consumers should be able to get have fundamentally changed the way information about a product that is consumers interact with retailers similar to what they can find on the and consumer products companies. product packaging. The consumer is in the driver’s seat, and the challenge for companies is Digital channels have created a need to maintain a true two-way dialogue. for rich consumer-oriented product This requires businesses to interact data, but in many cases, the digital with shoppers in new ways, with more product information provided to personalized and relevant content, shoppers is inaccurate, incomplete and to offer a seamless customer or missing entirely. For example, in experience across all channels. research conducted by GS1 UK and the Cranfield School of Management, The rapidly evolving communication 91% of mobile barcode scans returned landscape enables shoppers to decide incorrect product descriptions and themselves when, where and how to 75% returned no data at all.1 A key interact with a retailer or consumer step to provide better information and products company. A key driver for enhance the dialogue with shoppers those decisions is the relevancy of is to improve the visibility of product the product information that is made data in digital channels. available for consumers throughFigure 1: Product Data Visibility Analyzed Across 13 Product Data Attributes PRODUCT DATA ATTRIBUTES 1 2 3 4 5 PRODUCT INGREDIENTS/ MANUFACTURER SPECIFICATIONS PACKAGING NAME/BRAND FEATURES 6 7 8 9 10 SEARCH USAGE CERTIFICATIONS/ VISUAL LANGUAGE ATTRIBUTES INSTRUCTIONS STANDARDS 11 12 PRODUCT 13 CUSTOMER PRICE* AVAILABILITY* RATINGS* * These are functional aspects that may not be under Product Data Management (PDM) but are relevant for product data visibility and have been considered for this framework.Source: Capgemini1 “Beyond the Label: Providing Digital Information Consumers Can Trust,” GS1 and Capgemini, 2011.2
  3. 3. Consumer Products and Retail the way we see itTaking a Close-Up Look at Maturity Levels for Digital Product DataDigital Product Data VisibilityTo evaluate the visibility of digital Three maturity levels were defined for each data attribute examined in the study.product data, Capgemini conducted Level 1, Basic: Companies at this level provide the “bare minimum” of product dataa global research study involving 62 visibility in their digital channels. This represents the “must-have” level of product dataleading retail and consumer products visibility to start online or digital store operations.(CP) companies in the grocerycategory. The companies analyzed Level 2, Advanced: Companies at this stage have an advanced level of product dataare based in the U.S., Canada, UK, visibility in their digital channels. They provide a better-than-average shopper experienceNetherlands, France, Germany, across the different product data visibility attributes.Switzerland, Finland, Sweden and Level 3, Leader: Companies at the highest level have a leading-edge product dataAustralia. All selected companies proposition and are considered best-in-class in their category.are considered leading onlinegrocery retailers in their market. The Each level was defined in more detail for each product attribute, which then formed thecompanies’ online sites were assessed framework for this study through which both retailers and manufacturers were analyzed.across 13 product data attributes Examples of the framework attributes and the corresponding levels of maturity are(Figure 1, previous page), and three shown in Table 1.maturity levels were defined for each For example, in the case of certifications and standards, the Advanced level wouldattribute (Basic, Advanced, Leader; see include some certificates or standards with text or symbols. These could be retailersidebar). specific or brand specific. At the Leader level, the information would be more detailed and might include most locally used public certifications and standards. The informationThe objective of the research was to could be available either on the product page or through a link.evaluate how visible and consumerdriven the product data is in retailers’ The complete framework is available in the full study. Please contact your Capgeminiand CP companies’ digital channels. representative for more information and possible benchmarking of your company.Following is an overview of theanalysis for each attribute.Table 1: Digital Product Data Maturity Levels by Product Information Dimension (Examples) Product Name/Brand Ingredients/Features Certifications/Standards Description Representation of the product Ingredients and nutritional Information on product safety and brand - optimized for information, also icons for easy standards, accreditation, customer search and identification of product features environmental standards, energy search engines certifications, etc. Name/brand in simple text No information or only None Level 1: ingredients presented Basic Name/brand with logo. Ingredients and nutritional Some certificates or standards/ Level 2: Product description information available text or symbols. Can be retailer Advanced enhanced for shopper specific, brand specific, etc. relevancy Optimized for customer Detailed information on product Detailed information - includes search and link to page and icons for easy most locally used public Level 3: manufacturers website. identification certifications and standards. Leader Great value-adding Either on the product page or storytelling about the product available through linkSource: CapgeminiDigital Product Data 3
  4. 4. Product Name/Brand Best Practice: Figure 2: Product Name/Brand Results (%) Intermarché Value-adding product descriptions and brand visuals offer potential for 100 manufacturers to improve product 87.8 visibility in digital channels. French retailer 81.0 Intermarché provides the brand name 80 and logo on its product pages as well as enhanced product descriptions to add value and differentiate products. 60 40 19.0 20 7.3 4.9 0.0 0 Basic Advanced Leader Retailers Consumer Products Companies Source: Capgemini 100 1 Product Name/Brand 2 Specifications Representation of the product and 80 Information on product size, brand, optimized for customer weight and dimensions, ideally search and search engines. The illustrated with an image. The majority 60 retailers studied are at of majority of both retailers and CP 57.1 the Basic level, providing only the companies provide only minimum product name, typically in plain text. 43.9 information on product specifications. 41.5 CP companies are more advanced 40 Nearly half of retailers and 38% of in presenting logos and product CP companies can be classified as 28.6 descriptions next to the product Advanced, but none are in the Leader names on their websites than 20 14.3 segment. Typically both retailers and 14.6 retailers: 81% of consumer products manufacturers only report the product companies are in the Advanced weight on their websites, even though 0 segment, compared with only 7% of product dimensions might also be Basic Advanced Leader retailers (Figure 2). Leading retailers of particular interest to customers also provide compelling descriptions Retailers shopping online. Consumer Products Companies of the products and their usage. Storytelling is a great way to create shopper relevancy and differentiate products in customers’ minds. Some retailers provide better storytelling for their own-label items than for the manufacturer counterparts. 100 80 4
  5. 5. 60 40 Consumer Products and Retail the way we see it 19.0 20 7.3 4.9 0.0 0 Basic Advanced Leader Retailers Consumer Products Companies Ingredients/Features Best Practice: Figure 3: Ingredients/Features Results (%) As consumers become increasingly interested in the nutritional value of 100 products, expanded information on ingredients and features can enhance the shopping experience. U.S. online 80 grocery retailer Peapod provides detailed information on product features, ingredients, nutritional and storage 60 57.1 information, as well as quick-view icons like “gluten-free,” “freezable,” “low-fat” 43.9 41.5 and “vegetarian” to help facilitate the 40 shopping process. 28.6 20 14.3 14.6 0 Basic Advanced Leader Retailers Consumer Products Companies Source: Capgemini 3 Ingredients/Features Leading companies also display their Information on ingredients and 100 own icons to facilitate the shopping nutritional information, as well process to indicate, for example, light, as icons for easy identification of non-lactose or low-sodium products. product 80 features. The companies Some of the retailers studied use studied were split among the three pictures of actual product packages to maturity levels (Figure 3). With provide Gross Daily Allowance (GDA) 60 stricter regulatory development, 53.7 values, as good quality information 52.4 companies will be increasingly obliged might not exist yet in their Product to provide shoppers with detailed Data Management (PDM) tools. 39.0 40 information on the ingredients and 33.3 the nutritional value of the products. 4 Manufacturer In addition, consumers in many Key information about the 20 14.3 markets are increasingly interested manufacturer with contact in the ingredients and nutritional 7.3 information and a link to value of groceries and demand more 0 manufacturer’s website. More accurate and comprehensive data. A Basic than 80% of the retailers studied Advanced Leader recent study by GS1 and Capgemini are still at the Basic level, providing Retailers Consumer Products noted that two-thirds of consumers Companies information about the product some want to examine information on the manufacturer but few further details nutritional value of food products such as the product’s country of origin. (e.g., energy/calories, saturated fats There is clear room – and justification and sugar).2 – for improvement: In many cases 2 IbidDigital Product Data 100 5 85.7
  6. 6. information and compelling stories A product visual is particularly critical Search Attributes Best Practice: about the manufacturer can be the in digital shopping channels as it is Woolworths deciding factor when choosing among the only view customers have of an A good search functionality can different products. CP companies do a item. Leading players are bringing considerably improve the browsing better job, with 33% of them ranking in more advanced techniques such experience and help shoppers find the in the Leader category. as 360-degree views of the product. niche products they are looking for. Some retailers allow customers an Australian retailer Woolworths provides 5 Packaging option to post their own pictures of advanced search options, including Information on packaging, such the product. CP companies especially search by alternatives and by category. as size, weight and delivery also often offer videos of their For example, in the case of “organic,” temperature; also including eco- products, although typical 15-second a search results in a wide range of friendly and green packaging TV spots might not fit the needs of a categories – from “Baby” to “Pasta, Rice options. Packaging information consumer in a purchasing situation. & Noodles.” is still in an emerging stage, with Grocery retailers can learn much from 59% of retailers and 57% of CP other retail segments, such as fashion, companies providing no information in the area of product visuals. on packaging. A handful of retailers and CP companies in the Leader 7 Search Attributes category include information about Provide simple product search, sustainable packaging and recycling advanced search (multiple product options. The importance of packaging attributes) and intelligent search information will only grow as more (suggestive, related) options. More consumers look for ways to diminish than two-thirds of retailers and 55% their packaging waste, including using of CP companies offer only a simple more eco-friendly products to support search option where shoppers can a more sustainable way of living. search by product, brand name and category. However, 29% of retailers 6 Visual and 40% of CP companies help Visual representation of the customers find the exact products product, including product image, to fit their needs by offering specific zoom, 360-degree view, video and search attributes such as non-lactose augmented reality. The majority of or organic. Advanced search options retailers and CP companies rely on improve and facilitate the shopping static product images, sometimes experience by helping customers find enhanced with zoom functionality. what they want and also get to know new products that meet their specific needs. However, only a small number of companies were found to provide an upgraded search functionality, which lists synonyms, understands typical misspellings, and suggests related products to increase cross- selling and impulse purchases. 6
  7. 7. 40 43.9 41.5 40 28.6 20 14.3 Consumer Products and Retail 14.6 the way we see it 28.6 20 14.3 14.6 0 Basic Advanced Leader 0 Basic Retailers Advanced Consumer Products Leader Companies Retailers Consumer Products Companies8 Usage Instructions Figure 4: Usage Instructions Results (%)Information on how to use 100products, usage/buyer guides, 100how to’s, do’s and don’ts, links tosocial media, etc. Many consumer 80products companies provide shoppers 80with high-quality usage instructions,including how-to videos that often are 60 53.7 52.4not available on retailer websites. More 60 53.7 52.4than half of CP companies rank in the 39.0 40Leader category, compared with only 33.3 39.07% of retailers (Figure 4). Some CP 40 33.3companies have brand-specific shop- 20in-shops inside online stores where 14.3products are presented with recipes, 20 14.3 7.3videos and seasonal tips. Leading 0 7.3retailers link products to recipes, how- Basic Advanced Leader 0to videos and serving suggestions. Basic Retailers Advanced LeaderThe best-practice retailers also have a Consumer Products Companiesgood library of product usage videos, Retailers Consumer Productstypically also available on YouTube. CompaniesCustomers may also be provided Source: Capgeminiwith a community where ideas, usageinstructions, and questions andanswers can be exchanged.9 Certifications/Standards Figure 5: Certifications and Standards Results (%)Information on product safetystandards, accreditation, 100environmental standards, energy 100 85.7certifications, etc. Interestingly, many 80 85.7retailers do not provide shopperswith relevant information about key 80 68.3product standards and certifications, 68.3 60and CP companies score even loweron this attribute. Yet certifications and 60standards are important in creating 40consumer trust and helping shoppers 29.3 40buy more ethical products, which 29.3are often more profitable. Thirty 20percent of retailers and 15% of CP 9.5 20companies display at least some kind 2.4 4.8 9.5of certifications and standards (such as 0 4.8 2.4organic or fair trade) on the product 0 Basic Advanced Leaderpage (Figure 5). Leading players also Basic Retailers Advanced Leader Consumer Productsinclude integrated certifications in Companiessearch functionality and provide easily Retailers Consumer Products Companies Source: Capgeminirecognizable icons for consumers.Digital Product Data 7
  8. 8. Language Best Practice: H&M 10 Language 11 Price Availability of product information Information on product price, Multiple language functionality offers an including breakouts such as by in multiple languages. Even opportunity for retailers to potentially weight, and information in multiple though packages may show product reach a larger number of customers. currencies. More than half of the information in several languages, Grocery retailers can learn from retailers analyzed rank in the Basic 93% of retailers provide information apparel retailers like H&M, which offers category, while about one-third in only one language on their online customers the ability to select from provide more detailed price breakouts. product pages. Multinational CP a wide number of languages across Retailers in the Leader category companies typically have country- multiple regions. include special campaign prices, such specific product/brand pages, which are in the local language. Retailers as a volume discount, and may offer need to broaden their approach in free shipping for purchasing a certain most markets to include two or three number of products. key languages, which will require new capabilities. Often retailers’ 12 Product Availability merchandising/category management Information on product availability organizations do not have good in real-time, ideally across channels; storytelling capabilities in several includes stock count, updates on languages and might appreciate in-stock/out-of-stock status. Product manufacturers’ support in this area. availability is applicable mainly to retailers, but nine out of 10 do not currently provide this feature. Those few that are in the Leader category typically list product availability by store as well as stating stock availability at the warehouse, and in some cases they indicate approximate delivery times for out-of-stock products. Some CP companies that sell products online also provide information on stock availability. 8
  9. 9. Consumer Products and Retail the way we see it Customer Rating Best Practice: 13 Customer Ratings specific products and also post their Walmart Allow shoppers and experts to rate own product pictures on the product products on a single criterion or site. Ratings and reviews can help build multiple criteria and also write/ shopper confidence in products and This is the attribute that differentiates share comments and expert encourage customers to try new items retailers most: How open are they opinions. Shopper ratings and and new categories. On its product to customer discussions? Customer recommendations are a key enabler pages, U.S.-based Walmart provides reviews might accelerate sales for to introduce new products and drive customer rating totals, the number many products, but also possess risks sales of existing items. However, of customers who recommend the especially for own-label products. only 20% of retailers and 10% of CP product and ratings on individual Typically the leading players in this companies provide shoppers with the attributes. In addition, a customer-to- field also operate in other retail possibility to rate and review products customer section enables customers sectors, where customer reviews have on the product page. Leading players to connect to discuss product features, already become an industry way of also offer customers the possibility to ask questions, and offer opinions and working. ask and answer questions related to suggestions about products.Figure 6: Biggest Differences in Average Scores for Retailers and CP Companies 3.00 2.80 2.50 2.40 2.20 Average Score 2.00 1.80 1.60 1.40 1.20 1.00 d ns es ge s s ns gs al g e y r re te rd lit ic in an su ur io tio tin ua tu bi Pr bu ag da br Vi ct at la ac ca Ra ng ck tri an e/ ru fe ai uf ifi La at am Pa st av s/ st ec an in nt n/ ch N ct Sp M ie tio ge ar u ed od Se ca sa gr Pr tifi U In er C Retailers Consumer Products CompaniesSource: CapgeminiDigital Product Data 9
  10. 10. Key Conclusions to Improve • Easy product searches, including significant business in onlineProduct Data Visibility product substitute names and grocery operations.The insights derived from the common misspellingsresearch highlight a number of key • Simple icons to provide more It was clear from the research thatconclusions, including: information about product many retailers have already developed specifications, standards and basic digital product data capabilities• Only a few leading retailers and certifications but need to advance quickly to the consumer products companies next levels to remain relevant to • Device-optimized multimedia score well in many different areas shoppers (Figure 7). This requires about products and their use taking steps such as enhancing of product data visibility. All companies have opportunities for • Linkage to product recipes and product information beyond the basic improvement. vice versa data on the product package; using• The most significant differences • Manufacturers can help retailers storytelling to create a compelling between retailers’ and CP in providing shoppers with shopping experience; and adding companies’ scores are found in compelling, interactive multimedia higher-value features such as shopper presenting: 1) the product name/ and visuals about products; most of ratings and multimedia capabilities. brand, 2) usage instructions, 3) this already exists. To implement these features, manufacturer, and 4) ingredients/ • Storytelling about products and retailers must invest in efficient features (Figure 6, previous page). their usage is a key capability that PDM processes, flexible Master• The best retailers enhance the retailers need to enhance, in many Data Management (MDM) tools shopping experience in many ways, markets and in multiple languages. and new competencies in product for example: • Most markets are still in an early marketing organizations. Integrating • Enhanced storytelling about maturity stage and can learn from customer ratings, recipes and search products, with content not the UK, which has best-practice engine optimization will increase available in common data pools retailers in terms of digital product the complexity for digital Product data, and is already driving Data Management. Easily integrated solutions are a must in order to gainFigure 7: Building a Leading Online Shopping Experience Basic in Place Enhanced Shopper Experience Leading Edge PRODUCT NAME/BRAND STORYTELLING VIDEOS SEARCH ATTRIBUTES VISUAL AND MULTIMEDIA MULTI-LANGUAGE SPECIFICATIONS MANUFACTURER PRODUCT AVAILABILITY PRICE CERTIFICATIONS/STANDARDS RATINGS INGREDIENTS/FEATURES PACKAGING USAGE INSTRUCTIONSSource: Capgemini 10
  11. 11. Consumer Products and Retail the way we see it support from manufacturers and data and enhance product data, providingQuick Wins to Improve Product DataVisibility pools. an opportunity for CP companies to step in. This may include establishing Small things can make a big difference Integrating the operations of the 50 a digital team to support retailers and in the digital shopping experience. largest manufacturers to retailers is developing integrated platforms for Following are examples of quick wins relatively straightforward, but small Product Data Management. that both retailers and consumer and local manufacturers also need products companies can benefit from. simple tools and an easy interface Retailers will face a challenge, as most to maintain information about their need to gain new product data and • Display the brand logo and products. This group represents new attributes that do not exist in manufacturer information on the the long tail, which is becoming traditional product data pools, and product page. increasingly important in today’s they will need to get this data directly • Let shoppers search products by competitive landscape. from manufacturers. Because some brands, alternatives, allergens, retailers see product information special diets, etc. Consumer products companies as a competitive advantage and an • Add existing multimedia from CP should focus on producing entry barrier to the local market, all companies to retailer product compelling storytelling, innovative players will not require data pool pages. usage instructions and multimedia development. Across the industry this • Add storytelling for key products to gain competitive advantage and will mean a number of direct point- to create excitement and enhance better visibility in retailer digital to-point system integrations, unless shopper relevancy. channels. CP companies should act industry standard data for digital • Use informative icons to help as content creators to provide value channels can be agreed upon. In this shoppers find products (organic, for shoppers, while also driving the environment, PDM will be critical for gluten-free, etc.). content into retailer digital channels. both retailers and manufacturers in • Include product ingredients and With the rapid pace of development, the near future. nutritional value on the product retailers may not have sufficient page. resources or capabilities to update • Let shoppers rate products, share opinions and “Like” products with, for example, a Facebook button. • Deploy flexible Product Data Management solutions to enable “outsourcing” the work to manufacturers.Digital Product Data 11
  12. 12. About Capgemini and the Collaborative Business Experience™ ® With around 120,000 multicultural organization, Capgemini people in 40 countries, has developed its own way of working, Capgemini is one of the world’s foremost the Collaborative Business ExperienceTM, providers of consulting, technology and and draws on Rightshore®, its worldwide outsourcing services. The Group reported delivery model. 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini Learn more about us at creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply Rightshore® is a trademark belonging to CapgeminiTo request more detailed information aboutour findings, please contact:Sami Finnesami.finne@capgemini.comBrian Girouardbrian.girouard@capgemini.comKees Jacobskees.jacobs@capgemini.comThis executive summary provides anoverview of our “Digital Product Data”study. This report is meant to be the first in aseries; additional studies will focus on topicssuch as mobile use of product data and thequality of digital product data.The “Digital Product Data” study wasconducted by Capgemini’s ConsumerProducts & Retail Strategy Lab, led byManvendra Khati. ET-04/12Rightshore® is a registered trademark belonging to Capgemini. The information contained inthis document is proprietary. Copyright © 2012 Capgemini. All rights reserved.