June 4, 2020
Product data management is critical to the success of an online retailer. Regardless of whether you are selling your products through an online marketplace or your own e-commerce store, data is what drives growth.
In fact, according to data presented by Nosto at a recent webinar, personalization has the biggest impact on e-commerce success. Namely, 75% of consumers prefer to receive personalized messages, offers, and experiences from brands. Moreover, 94% of companies believe personalization is critical to current and future success.
Fashion retailers can achieve personalization with good PIM (Product Information Management). PIM is the process of creating and managing product descriptions for product catalogs. Companies are adopting PIM solutions rapidly, with the market expected to reach $11.4 billion by 2024.
PIM makes processes in the product catalog more effective, offering smooth consumer service, and boosting conversion levels. Furthermore, it reduces product time-to-market, providing precise, thorough, and standardized product data. This way, your product feed will have all the necessary information for efficient product data management.
PIM also helps you collect accurate and quality data. The results from your activities rely on accurate data that generates titles, descriptions, and information that helps you target more specifically. Accurate data can help you create a Netflix-like personalization experience for your users.
What happens when you don’t do product data management right?
Inconsistent inventory information
Having a real-time overview of your inventory is critical to creating precise and error-free orders that satisfy demand. You need to know all the products you have in your storage anytime. This will prevent you from ending up with storage full of unsold products or from apologizing to your customers for not having the product they ordered on your website.
Efficient product data management will reduce your costs, forecast supply, and enable you to answer customer demands in real-time.
Decreased product visibility
Customer search can be a significant part of the overall revenue of an e-commerce store. Namely, according to WebLinc, on-site searchers are 216% more likely to convert than regular users. But, for searchers to find the products, they have to be visible. This can be a problem when different customers have different names for the same product.
That’s why it’s important to have precise information that will cover all of your customers’ searches, making the products on your website easily discoverable.
Metadata is an important part of the product catalog that contains the description of other data, like keywords that describe an object of an image. As they provide context and information about the products, these keywords need to be relevant and accurate. Otherwise, products won’t rank on search results, and customers won’t understand the context of the images.
When a new product is introduced, it has to go through the process of digitalization and receive accurate data points. Having a PIM system means having a quick and flexible introduction process that does everything automatically, saving a lot of time and manual work.
How does a PIM solution help?
Product data management done right
Online store managers traditionally use several tools and apps for product data management. This makes data unstandardized, causing many difficulties in further processes. What is more, this is more costly and makes data management processes error-prone.
The solution to these problems is an AI-based automatic tagging engine as a part of a PIM system. This is a new solution that automates the process of adding tags into the PIM system. AI engines manage product catalog data through photo tags based on their features. Thanks to the Deep Learning algorithms that automate the tagging process, there’s no need for human intervention.
The automatic tagging solution generates metadata for all the products in the product catalog. A simple image scanning that lasts like a blink of an eye is enough to detect every product feature and link it to a certain keyword. The engine needs only a few minutes to tag an entire catalog.
Each photo gets attribute labels that are, in fact, valuable insights about the product and its features. The AI engine learns from the tags and generates data about how they are used, who is using them, and how they are related to other product tags.
The result is a well-organized catalog. Moreover, online retailers can monitor sales, recognize bestsellers, eliminate low-selling products, and manage inventory better.
An effective PIM solution provides structured and consistent product data, with a locally-organized product feed.
Thanks to this, you’ll get a clear and precise offering your customers will understand immediately. Moreover, you’ll get educated customers who know what they’re buying. Finally, they’ll easily be able to find the products they are searching for, going through seamless customer experience.
Pixyle.ai’s automatic tagging engine scans your images in the blink of an eye, making your product data management process flawless. Thanks to our AI-based technology, your products get rich and descriptive tags that provide relevant data for your e-commerce store. Your customers will be able to find exactly what they are searching for in seconds.