Retailers often have a complicated relationship with data. For some, it’s a constant source of stress. For others, data becomes their most powerful and competitive asset. What’s the secret to their success? In many cases, it’s Master Data Management (MDM).
First, let’s point out that there are many ways MDM helps retailers. From reduced waste to regulatory compliance and supplier management – the list goes on. But in this article, we’re sharing specific advice on how retailers can increase sales with MDM.
#1: Compelling Product Content Converts More Sales
All retailers want to remove customer objections when buying. And perhaps no single factor eliminates second-guessing better than accurate, complete, and compelling product data.
When customers shop online, they want as much information about the product as possible. Because when you can’t hold a product or see it in person, the next best thing is having your specific questions answered about size, shape, look, feel, etc. Similarly, when customers shop in-store or on their mobile device, they want access to information that aids the buying journey.
Enriched product data is essential for converting browsers into buyers. Data management helps retailers deliver this content consistently and accurately across channels. MDM with Digital Asset Management (DAM) also helps retailers provide 360-degree images, demonstration videos, manuals, and other assets that bring the product to life and drive increased sales.
#2: Personalized Recommendations Drives Higher AOV
According to Accenture, “91% of consumers are more likely to shop with brands who recognize, remember, and provide them with relevant offers and recommendations.” That’s why, when it comes to increasing sales, retailers need flawless product content and actionable customer data. MDM helps deliver both.
By capturing customer data to build in-depth profiles, MDM allows retailers to understand and predict what customers want. They can then leverage those insights to provide relevant product recommendations to their customers.
Additionally, through linking product attributes with strategic product data management, you can enhance your average order value (AOV) through upselling and cross-selling opportunities. Using multiple data domains like Customer and Product to deliver relevant offers is a proven method to increase sales.
#3: Price Optimization Provides Better Margins
In the fiercely competitive retail market, it’s crucial to stay agile on price. Particularly in lower margin retail categories, pricing changes (even small ones) executed quickly can make a huge difference in sales. Unfortunately, without a single view of product data, it’s challenging to make rapid pricing updates across your selling channels.
With MDM, retailers can optimize price positioning and make pricing adjustments across channels at speeds you could never touch with manual pricing. When the competition changes prices – or other factors affect your margins – you can adapt on the fly. And with the wealth of data MDM brings, your business can rely on more informed pricing analysis and strategy.
#4: Endless Aisle Helps Reach More Buyers
According to RetailDive, retailers are missing out on nearly $1 trillion in sales because they don’t have on hand what customers want to buy in their stores. One solution to this problem is Endless Aisle.
The Endless Aisle concept refers to a retailer’s ability to sell a vastly expanded assortment in-store or online. Keeping shoppers on your site or in your store drives higher sales and better customer satisfaction.
Here’s the challenge. With greater assortment often comes deeper data issues – and customers can feel overwhelmed by a confusing shopping experience. MDM helps retailers overcome these challenges with data quality and automation.
With MDM, enterprises can cleanse, de-duplicate, and standardize millions of SKUs sourced from multiple suppliers and sources. Retailers can successfully scale their assortment to an infinite level while maintaining accurate, consistent, and enriched product content.
What Works Best for Your Retail Strategy?
The list of ways MDM propels retail sales certainly doesn’t end here. In fact, many data management clients continue to uncover new ways to improve their sales and transform their business years after implementation.
Whatever your goals may be, Amplifi has the data and retail expertise you need to make data one of your best competitive assets.
For more insights, download our featured ebook: Gain the Value of Accurate Product Content.
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