Simplifying the Complex Process of Data Integration, Part 2

Continuing our coverage of the recent webinar from All About ROI, Good Data is Good Business!, sponsored by Stibo Systems, this week we recap the presentation of Simon Rodrigue, associate vice president of e-commerce for Sears Canada. In particular, we begin to break down Rodrigue's five critical steps to product data integration.

(For part 1 of this multipart series, and a recap of the presentation by Timothy Holody, COO of Seta Corp., parent company of multichannel jewelry marketer PalmBeach Jewelry, click here. To access the webinar on-demand, click here.)

1. Product information is a competitive advantage. Sears Canada tracks the following six product information areas within e-commerce:

• Product information. All of the copy, creative and multiple language that allow shoppers to make that what and why to buy decision, Rodrigue said. The test for Sears Canada's e-commerce website: Could it answer every question that a customer would get talking to one of its store associates?
• Search. It's no longer just about indexing and providing the data, Rodrigue said; it's how you are making it relevant and understanding what customers are looking for and then repeating that back to them.
• Conversion from visitor to customer. Sears Canada measures product information pages’ conversion stats and dollars per page view, among other things. “A lot of this is driven by product data,” Rodrigue said. “Understanding and testing what are you providing to customers, how are they utilizing it and moving forward.”
• Attachment. How do you leverage your data, not only product information but other types of data you have available — gross margin, inventory availability, what other customers are purchasing — to optimize upselling and cross-selling opportunities.
• Returns. Especially critical for direct retailers, Rodrigue said, is avoiding product returns. Ensure that all product categories don't lack product information that may spur returns.
• After-sales service. What can your product information do to make it easier for customers after purchase to get information on their products, and how is that reducing the cost to your organization for after-sales service?

2. Product information is a business challenge, not just an IT challenge. This is really a customer service challenge, said Rodrigue. All of it relates to how you deliver on the customer's needs. With all of its product information maintained in a central location, Sears Canada must determine how it all ties together not only for its website, but also its print advertising (e.g., catalogs, fliers, etc.), stores (e.g., store signage, information available to store associates) and customer service (e.g., call center).

Have many different inputs for product information, advised Rodrigue. “It can't be a single-stream way to input into the system.” Sears Canada is exploring these multiple entry points — supply chain, ERP — to feed its affiliate networks and partner sites with product information data.

On-Boarding Challenges
Already with 320,000 SKUs currently available via its direct channel, Sears Canada is looking to greatly increase that number. Rodrigue believes that customers feel that a company's direct channel is the superset of SKUs available in its stores. When customers go online, they're expecting that all of your products are available. “The internet, if done correctly, can have that endless aisle opportunity,” Rodrigue said.

Factors to consider when planning your merchandise assortment:

• Size of assortment: Are drop-ship and special order items on-boarded?
• Assortment life cycle: When you're building your data model, understand and segment short-lived SKUs vs. long-lived categories. One example is how does your site deal with seasonal products? Also, can your data model handle discontinued products, particularly if they're discontinued in one channel but available in another? “The advantage of being a multichannel retailer is that we have multiple different types of storefronts, the internet, an outlet site and stores, and a catalog business that we can push different products to," said Rodrigue. “It's having that ability to very quickly move not only product data, but the information needed to drive that fulfillment through the channel.”
• Product data scope: Do you have all of the customer-facing information needed for each product? Your master data management system also needs to include supply chain information, regulatory information and the digital media associated with each product.

Check back in two weeks when we'll continue our recap of Rodrigue's presentation with more of his steps to proper product data integration.