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Impact of Product Data Personalization on Customer Experience in Retail

Recently, Centric PXM, a leading provider of Product Information Management (PIM) cloud services, conducted a survey focusing on how product data personalization affects customer experience (CX) in the retail sector. This was the second phase of a previous study released in July on digital transformation and product information management in retail. The latest findings reveal the significant role of product information quality and presentation in shaping buying behavior and customer loyalty, as well as the challenges that companies face in enhancing their CX.

Key Findings from the Survey

The survey included responses from over 100 participants from retail companies with annual revenues exceeding ¥5 billion, focusing on various aspects of product data and customer experience:

• - Impact on Purchase Rates: Approximately 90% of respondents acknowledged that the quality of product page information significantly influences purchase rates. This included aspects such as product images, descriptions, and specifications, emphasizing their vital role in the customer journey within e-commerce.
• - Efforts to Enhance Product Information: About 80% of the surveyed companies reported actively working on enriching their product data. Initiatives included refining product descriptions, adding more images, and enhancing customer reviews, largely relying on manual efforts.
• - Challenges in Information Management: Despite these efforts, roughly 50% of participants admitted they frequently faced situations where products were unavailable for sale due to poorly maintained information. This highlights a troubling disconnect between recognizing the importance of product information and effective implementation.
• - Operational Burdens: About 60% noted that creating product descriptions and managing images consumed excessive time and resources, posing a significant challenge to operational efficiency.
• - Personalization Effectiveness: Interestingly, over 80% of companies that implemented personalized product information reported improved loyalty and CX outcomes. It appears that personalization driven by purchase history and browsing behavior can lead to notable advancements in customer engagement.

Challenges with Automation and AI

While the benefits of personalized product data are well understood, the adoption of advanced automation techniques and AI remains limited. Many companies recognize the potential but struggle with operational realities. This indicates a gap between understanding the advantages of digital transformation and the capacity to execute such strategies effectively.

Prioritizing Quality and Personalization

Retail leaders are increasingly focused on improving the quality of product information as the cornerstone for enhancing CX. Notably, more companies are prioritizing the enhancement of personalization strategies over the adoption of advanced technologies like AI or AR. This suggests a strategic shift towards ensuring the reliability and appropriateness of product data.

The Shift in Retail Competition

Ultimately, this survey indicates a pivotal change in the landscape of retail competition. It's no longer merely about possessing vast amounts of product information; it’s become crucial to efficiently manage and optimize that data. Companies need a central system to manage product information seamlessly, design processes that don't rely solely on manual efforts, and ensure optimized user experiences across all channels.

For retailers aiming to balance CX improvement with revenue growth, the path forward involves:

• - Establishing a centralized management system for product information.
• - Structuring operations to eliminate reliance on manual tasks.
• - Providing product experiences tailored to specific channels and customers.

Such strategies will underpin sustainable improvements in customer experience and ultimately drive sales growth.

Centric PXM’s upcoming annual conference, Product Experience Summit Tokyo 2025, will delve into the latest challenges and solutions in PIM and digital asset management. It offers a valuable opportunity to hear firsthand from industry leaders, including Panasonic Connect and Rohto Pharmaceutical, about their innovative PIM implementations.

• - For more insights and to access on-demand content from PXS25, visit: Product Experience Summit On-Demand