| schedule 3 minute read | label Product Information Management

5 Product Information Issues Affecting Your Business Revenue

In ecommerce, there are a lot of moving parts that help ensure the success of a business, and product information is one of them. Product information or what is also commonly known as product data, in ecommerce helps customers understand the product’s benefits, uses, features, characteristics, and further helps them decide if this is what they need. 

Studies have shown that 81% of online customers research products online before heading out to the store. And, 88% of US businesses' bottom line has been affected by poor product data and lost around 12% of their total revenue. This tells us that whether you have a physical store, an online shop, or both, product information is important. Without accurate information, you lose out on customers and the money they would have potentially spent at your store. 

So, what are the common product information issues making customers consider your competitors over you? 

1. Lack of product information 

For modern-day customers, information is key when purchasing a new product. This is because more and more companies are improving their visibility online and customers are spoiled for choice. The only thing that helps them determine which product is most suitable for them and their needs is a business' product information. Without adequate information that tells the customer about the product price, name, description, technical specifications, and any other sales-related information, a customer will be left unsure, confused, and most likely frustrated. 

And, one thing about today’s customers, they won’t spend on something they’re unsure of. In fact, 42% of customers said: “they’ve given up on an online purchase because they didn’t have enough information on the purchase”. This results in cart abandonment, which studies have shown that it causes ecommerce brands to lose $18 Billion in sales revenue each year. 

 

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2. Inaccurate product data 

Retail channel management is challenging, especially when it comes to managing product information. Most businesses use outdated storage methods such as Excel spreadsheets instead of PIM systems. The issue with this is that spreadsheets don’t have the capabilities to detect errors and over the years, it’s been proven that spreadsheets contain errors, 88% of them in fact. This is because humans manage product data and anything managed by humans is prone to have errors. The issue here is that it can impact the business negatively as only 13% of customers would purchase from a brand after they’ve been provided with inaccurate product information. This explains why organizations lose $13.3 million yearly on average because of poor data, according to Gartner.

 

3. Poor product descriptions 

Product descriptions are one of the most important types of information. They help evoke emotions that can influence customers buying decisions, highlight the benefits of the product, help your SEO efforts, and boost conversions. A report found that good product descriptions influence 87% of online shoppers’  buying decisions. However, many ecommerce businesses still struggle to write compelling product descriptions, which results in 30% of consumers abandoning their shopping cart and a loss of revenue. 

4. No quality digital assets 

Quality product content isn’t just your product descriptions and information. It’s also digital assets like your photos, videos, and PDF guides you use to sell your products. Customers don’t just rely on words but on these digital assets to help with their purchases as they can see the product use without having to commit to a purchase. While multimedia is important in ecommerce, many businesses either don’t have quality product images and videos or enough range for customers to get a full idea of the picture. This is an issue as videos and images help increase the conversion rate considering that 73% of shoppers say they are more likely to purchase a product after seeing a high-quality photo. And, 96% said visual content helps them to get to a purchasing decision. Another study surveyed 1500 customers on their shopping habits and found that more than a quarter of shoppers abandoned their purchases when there were no quality images. 

5. No product reviews 

The survey further found that no product reviews are also one of the reasons shoppers abandon their cart. Product reviews and testimonials help improve customer trust and loyalty as it strengthens a business' credibility. Without it, it’s hard for customers to trust you, especially as a small brand. This explains why almost 50% of customers said they didn’t make an online purchase because they didn’t trust the seller. The lack of product reviews and testimonials can hurt your business and impact your sales, but having at least five quality product reviews is said to increase the likelihood of purchases by 270%. This is the power product reviews have on customers, and many online retailers are making an effort to get customers to post reviews. 

 

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Plytix is the answer to all your product information woes 

One thing is for sure, quality, complete, and accurate product information is key to helping you get to your bottom line. It gives customers the information they need and improves their customer experience, which makes it easier to purchase products from you. In such a competitive space, being able to attract, engage, and persuade customers is the goal. But, how do you do that? By investing in a product information management tool. 

A PIM tool works as a single source of truth for all of your product information. This includes product data, descriptions, technical specifications, customer reviews, digital assets, and more. When you have all that information in a product data management system, you can ensure complete and accurate product data that converts! 

 Plytix is a product data management software that not only helps you store and manage your data but has features such as product syndication to popular sales channels, design templates for both print and digital catalogs, and a built-in analytics tool to help you analyze your data. 

To find out more about a PIM tool and why you need it, download this free whitepaper. And if it sounds like something you need or you’d like to learn more about the benefits of a product information management tool, contact us today!

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