The New Google AI Mode – Paradigm Shift in Product Search

The internet search as we know it is on the brink of a radical change. With the new AI Mode, Google introduces a system which no longer banks on classic link lists but generative answers – created by Large Language Models (LLMs). Users directly receive comprehensive, context-sensitive information directly on the search results page without the need to visit a website.

This paradigm shift does not only change user behavior but also poses new challenges to both e-commerce companies and brands. This is because the product search, too, is undergoing massive changes. Those who want to stay afloat in the light of AI-assisted product searches must grapple with structured data provision and hyper-personalization. Google AI Mode makes one thing clear: Only high-quality, machine-readable product data stays visible.

In this article, you learn what impact Google AI Mode has on the topic of product search and why product data management advances to the strategic key discipline.

 

Google AI Mode vs. Google AI Overviews – what’s the Difference?

Even if the concepts are often used interchangeably, there is a clear-cut difference between Google AI Mode and Google AI Overview:

• Google AI Mode is the overarching search mode that users can activate (currently only in specific regions such as the US and India). With this mode, you get the full AI-based search experience – with interactive answers, context-related follow-up questions, and extended functions like product comparison, travel and tour planer, or even shopping promotions.
• Google AI Overviews, on the other hand, stands for the visible, AI-generated answer fields displayed directly in the regular Google search results – even without AI Mode being activated. They deliver compact summaries, are based on generative models, and supplement the classic search results.

And how do LLMs such as Gemini and ChatGPT differ from this?

While Google AI Mode and Google AI Overview represent concrete functions within Google Search itself, Gemini (Google) and ChatGPT (OpenAI) are so-called large language models (LLMs) – that is to say, they constitute the technological foundation on which all such functions are based.

• Gemini is Google’s own LLM utilized for a great many applications – among others Google Search, Workspace (Gmail, Docs, etc.), and even AI Mode itself. It delivers the intelligence for generative answers and interactions within the Google ecosystem.
• ChatGPT is the LLM-based dialog system by OpenAI which is also based on its own language model (GPT-4). With the ChatGPT Search Extension, you can also access real-time data from the web and integrate it in answers.

Therefore, the difference lies in the application:
Gemini and ChatGPT are “motors” (models), while the likes of AI Mode, AI Overview, or ChatGPT Chatbot are “automobiles” (user interfaces / functions) into which this motor is built.

 

Google AI Mode vs Classic Search Engines: What Will Change?

The classic times of users inserting term-based search queries into Google, click on results, and tediously work through displayed websites is a thing of the past. Over the last few years, Google has already found a competitor in Amazon when it comes to product searches. In particular when it comes to product searches for making a concrete purchase decisions. At the same time, TikTok has revolutionized the search behavior of generation Z: here, people search for experience reviews, inspirations, and trends – fast, visual, and emotional.

While classic SERPs (Search Engine Result Pages) are a combination of ads and organic links, Google now – that is, since May 2025 regionwide in all of Germany – provides direct contextualized answers (source: Sistrix). This changes the customer journey drastically: it is shorter and much more shaped by AI.

 

Google AI Mode, the New Generation of Search

The actual paradigm change, however, starts now: With Google AI Mode, a new generation of Google Search appears on the scene. Product recommendations are no longer provided by classic SEO rankings or paid advertisement on page 1, but through a smart, AI-generated answer with only a single reply. There no longer are any classic link lists. Instead some well-selected links pop up as part of the answer text – why click on them, though, if you have already been provided with what you have been looking for?

AI Mode has been in use in the US since May and has recently also been rolled out in India. When it will be introduced in Europe or Germany is currently unknown. Possible candidates include a release within this year still or perhaps even an implementation at a later date.

Parallel to the changes in search results, AI assistants such as ChatGPT by OpenAI or Google’s Gemini do also gain in significance. Both technologies are based on Large Language Models (LLMs) that do not only answer search queries but also interpret and contextualize relevant content in order to deliver direct, personalized results – without users having to click actively.

For e-commerce specialists, this means the following: Those who do not follow the trend will lose visibility – not only in Google applications but everywhere where AI systems dominate access to information.

 

This is How Generative AI Changes Google Search – and what this Means for Companies

The integration of generative AI in search systems revolutionizes digital retail – this is not a vision of a distant future but the here and now. The more affinity your target group has for technology, the more you can feel the first changes as early as today. Especially large language models (LLMs) such as ChatGPT and Gemini deeply influence the customer journey. The following examples show in more concrete terms what this means:

Informational Content Loses in Reach

LLMs answer simply questions directly – often times before a user even gets to take a look at the listed websites.

Example: An online shop for household devices which previously benefitted largely from organic traffic thanks to tips-and-tricks articles like ‘5 household solutions against stains’ are now experiencing a collapse in page visits. The reason: Google AI presents the answers directly in the search.

Keyword Data Loses in Meaning

Thanks to AI, search requests become more individual, context-related, and dialog-oriented. Classic keyword tools are currently hitting a wall. In the future, content ought to be centered more around search intentions and thematic relations.

For example, a sporting goods retailer who previously banked on keywords such as ‘running shoes woman’ must now come to the realization: new search requests go like ‘Which running shoes are suitable for marathon training despite knee problems?’ – a highly specific longtail question answered directly by the AI system with personalized recommendations.

AI as the Purchaser: Who will Make the Purchase Decision in the Future?

With the release of AI Mode in the US, Google advances more and more to the position of an active shopping assistant. While users used to do their own research, AI now takes care of this proactively – including the processing of the purchase for the vendor directly via Google Pay.

When AI systems prepare or even make purchase decisions, the supply chain changes down to its very core. Here, however, many questions are still left open!

What will happen with classic cross-selling measures? Today, users browsing online shops see notifications such as ‘Customers also bought…’ or ‘Buy in bulk to save money.’ Will an AI to which the task is given to procure a specific product, however, also take these additional offers into consideration?

Or maybe the development will take the opposite turn – and AI systems may actively ask whether you need something else? Be it Google, OpenAI, or another provider: with increasing integration into various end devices, AI assistants may very well soon be able to make hyper-personalized purchase recommendations that transcend anything today’s product searches are capable of.

And how will all this be affected by legal regulations? The legal perspective – in particular from the point of view of European courts – is still open. One thing, however, is clear: providers such as Google have a strong economic interest. With ad revenues of 265 billion US dollars in the year of 2024 (source: Statista) the stakes are high.

What about monetization of AI searches in the future? Will classic ads continue to be relevant – and if so, where will they be displayed? And how will retailers pay so that the Google AI assistant will make purchases in their shop given that there will be no more costs per click or target CPAs (cost per acquisition)?

The logical answer would be the following: An AI assistant should be geared towards maximizing sales, from Google’s viewpoint. While it takes five clicks to buy a product today, AI can do so in a single click – this is efficient but potentially less profitable for Google. Could a transaction-based payment model be more practical for AI? If so, then AI would turn from a pure buyer to a strategic seller – with the goal of generating more purchases and more sales.

What courts will say about this remains to be seen – this also counts for the question of whether AI systems will even be allowed to make autonomous purchases in the first place and who will be held accountable should legal conflicts arise. Here, one thing is for sure: these questions will come to determine both the legal and ethical frame of AI in e-commerce.

 

Product Data as the Foundation of AI Search

As we have seen: Many questions revolving around the implementation of AI in product searches remain unanswered for the time being. There is one point, however, that is certain as early as today – and it is of utmost importance:

Only those who deliver machine-readable, up-to-date, and high-quality product information will be taken into consideration by AI systems. The quality of product data will decide whether a product can be found, parsed, and consequently recommended.

This is relevant because AI systems such as Gemini or ChatGPT do not function like classic search engines that merely link to websites. They analyze and interpret content semantically – they must understand what the product is about, which properties it has to offer, how it differentiates itself from the competition, and into which use case context it fits.

This can only be successful when product data is…

• complete (e.g., technical details, measures, materials, use case applications),
• structured (e.g., in the form of well-defined attributes, hierarchies, and categories),
• consistent (across all channels),
• and updated regularly (such as for prices and availability).

Without this data foundation, an AI cannot build a valid product understanding – so that the product will simply not be displayed or recommended. On top of that: The higher the data quality, the better the AI system’s hyper-personalization, product recommendations, and automatic content generation will function.

Last but not least, the following applies: Product data is not only the information source but also a strategic asset. Those who neglect it in the world of AI search will not only lose visibility but also their competitive edge in the markets in the long run.

 

How Companies Should Prepare Right Now

We stand before the beginning of a foundational change – and it will soon become reality, sooner than most may expect. With its shopping assistant, Google has delivered a first foretaste, more functions by ChatGPT, Gemini, and others will soon follow. The development is proceeding at a rapid pace.

Now is the time to act. Companies ought to prepare as well as possible for the upcoming changes:

• Observe the current developments revolving around AI and Search – in particular Google, OpenAI, and other relevant players.
• Check your existing product information for completeness, structure, and up-to-date-ness.
• Invest into a modern PIM system, like ATAMYA, to manage data in a central, efficient, and sustainable manner.
• Optimize your product data specifically for AI processing, including semantic structures and relevant attributes.
• Enrich your information as much as possible – from technical specifications to context-relevant descriptions.
• Keep taps on the legal developments on how to handle AI in retail in order to prevent risks well ahead of time and take legal precautions.

Only those who act at an early stage will be visible and stay both competitive and relevant in the AI-driven commerce world.

What is Omnichannel Marketing?

Omnichannel marketing is the marketing strategy that connects all sales channels. The advantage of omnichannel marketing commerce is that customers can enjoy a smooth purchase experience and can continue this experience as they move from one channel to another – without any contradictions, inconsistencies, or gaps – thanks to the integration of the various sales channels.

This, then, is how omnichannel marketing connects all channels, both online and offline. This includes the following:

• Online shops
• Online marketplaces
• Stationary stores
• Social media channels
• Mobile apps
• Product portals
• E-mail newsletters

In the process, omnichannel marketing makes use of a wide range of marketing measures such as target-oriented advertisement, personalized e-mail marketing, recommendations, both cross-selling and-up-selling, while also accompanying and supporting target groups throughout each and every stage of their customer journey.

How can Companies Profit from Omnichannel Marketing?

The purchase behavior of both end customers and companies has continuously evolved towards digital apps. Where there used to be only a few established channels operating independently from one another, you can nowadays choose from many more touchpoints. Reaching out to the customer across the whole customer journey – both in a digital and analog manner – with consistent data, this is what poses a major challenge. Mastering this challenge will translate into enormous benefits for your marketing team.

An omnichannel strategy provides the following benefits and more:

• Boosted Customer Satisfaction: Omnichannel marketing enables a smooth user experience for customers, allowing them to come into contact with a company through various channels. In the process, customers can choose for themselves which channel they want to use to buy products or inform themselves about a brand. This allows for a consistent brand presence and a uniform product message.
• Higher Sales: By offering their products and services on many channels, companies can increase their outreach and address potential customers in diverse ways. This enhances the sales potential and the company can generate more profit.
• Increased Customer Retention: The option to connect to various channels makes it easier for customers to make direct contact and forge a personal bond with the company. This can translate into stronger customer retention since it will be easier for them to stay in touch with the company.
• Effective Data Analysis: Using different channels, marketing teams can collect data from various sources, e.g. transactions, behavior patterns, or feedback. With a thorough analysis of this well-bundled data, companies can gain valuable insights into the behavior of the target groups across the whole customer journey – and improve both their strategies and offers on this basis.
• Simple Scalability: The optimal realization of an omnichannel strategy comes with the centralization of product information. This data foundation can be built upon when connecting new marketing channels, hereby skyrocketing your efficiency.

All in all, omnichannel marketing provides you with the possibility to directly address your customers’ needs and wishes, bolster your marketing presence, and increase your profit.

 

Examples for Omnichannel Marketing in B2B and B2C

In general, omnichannel marketing is relevant for both B2B and B2C alike. A small difference, however, results from the often times more complex purchase process for B2B customers. Given that this involves a large number of decision markers, B2B comes with longer approval and purchase periods. Especially when it comes to high-cost products, multiple stakeholders with individual requirements are to be convinced of the product. Besides this, the strategies differ only by relevant touchpoints, depending on your industry and target group.

B2B Example: Touchpoints of buyers and sellers when purchasing a heating system

• Website (buyer)
• Wholesale store (buyer)
• App as product portal (buyer)
• BIM system (buyer)
• ERP system (buyer)
• Service portal (seller)

B2C Example: Touchpoints when purchasing a cupboard for an end customer with the help of the service portal

• Product flyer (end customer)
• Social media ad (end customer)
• Online shop (end customer)
• Product configurator (end customer)
• Service portal (service personal)

 

Why is Product Data so Relevant for the Omnichannel Approach?

Product data is highly relevant for the omnichannel method since this is what forms the foundation for consistent content and a uniform product presentation. Contradiction-free product information across all sales channels is the fundamental requirement for a successful omnichannel approach.

When the product data isn’t identical throughout the entire customer journey, it can easily cause confusion for customers and, consequently, damage their trust in the company. This, in turn, can translate into a loss in sales. A consistent presentation of your products across all channels, to the contrary, assures that your customers will be able to view the product with one and the same set of information in all channels and, with that, enjoy a continuous sales experience.

So, when a company wants to implement omnichannel marketing, it’s important that the product data is always consistent and up to date. For this reason, Product Data Management should enjoy a higher priority to guarantee a successful customer experience.

 

What Software Tools are Indispensable for the Success of Your Omnichannel Strategy?

For the successful implementation of an omnichannel strategy, it takes the interplay of different software solutions such as PIM, CMS, ERP, CRM, and DAM systems. However, product configurators, apps and corresponding shop systems also play a decisive role. Additionally, the integration of AI-based tools does also play a crucial factor. The IT infrastructure and the selection of fitting tools from the “MarTech Stack” are game changers.

Since consistent product communication across all channels is a strategic point in omnichannel marketing, the PIM system occupies a central role in this case. Here, your product data is centralized, enriched with content, and, finally, distributed into various marketing channels.

Both product data and customer data are imported into the PIM by connecting ERP and CRM systems. Images and videos, on the other hand, are provided by directly integrated DAM modules or via a separate DAM system. For content creation and translation, PIM offers AI-based content automation tools and translation management systems with translation memory function. Target systems include the connected online shop, product configurators, apps, social media channels, or external e-commerce platforms such as Amazon or eBay, where products are made available to the customer.

Only when all these systems communicate with one another in a smooth manner, a successful omnichannel strategy can unfold itself for delivering a first-class customer experience.

User-Generated Content: Authentic Experiences, Concentrated in PIM

Authenticity is today’s currency. Credible experiences, real recommendations, inspiring feelings – the personal dimension informs nearly every important purchase decision. And this may be true on an even greater scale than you might have thought up until now: According to a case study by Nielsen, “Trust in Advertising”, around 85 percent of consumers in Germany trust (personal) recommendations when they make a decision for or against purchasing a product.

The trend is also clear: Customer reviews, recommendations, and word-of-mouth marketing gain increasingly more relevance over branded content. However, why exactly is this the case? How can you turn this into an advantage for your company? And how can a PIM support you in doing so?

 

5-Star Rating: Word-of-Mouth Marketing in Digital Space

“All that they’re trying to do is to persuade me into buying something” – did you ever have thoughts like these while encountering more or less credible advertisement promises originating from the pens and creative minds of the big ad agencies? More often than not, creating “branded content” comes with an enormous time investment and the need for a large budget – and while it’s true that this produces high-quality ads which are well thought out down to the nitty-gritty details, it will also create a gap between you and your customer. The times were “bad publicity” was hard to come by is no more – if you ever happen to lose your customers’ trust or adopt the wrong tone, your company can suffer damage at a sensitive point.

How, then, can your brand message be communicated to your customers in the most optimal manner – how can it move them, forge a bond, and animate them to make purchases? By winning over authentic customer voices for your products! This is because human beings want to trust credible testimonies by fellow human beings.

Any this is where “user-generated content” comes into play. More and more companies have come to rely on it. How about you?

 

User-Generated Content – an Integral Component for Online Marketing

In the age of digitization – in particular: in the age of individualization –, a drastic shift has occurred in the expectations customers have. The classic one-fits-all solutions must make place for products and services which feel like made-to-measure solutions which match your very own personal needs. Whatever it may be that human beings happen to buy with their purchasing power – it’s supposed to fit like a tailor-made suit. And how can you find the best tailor? Easy, with authentic, credible recommendations. From humans for humans.

User-generated content does no less than that: It shares personal experiences. As the term implies, user-generated content consists of all the material made by customers for customers; this may include product reviews on YouTube, star ratings on sales platforms, or extensive write-ups. What makes this user-generated content so valuable: Customers create this content voluntarily and independently – and, for this reason, it’s all the more potent. Customers make actual positive experiences with the product or service – and feel the authentic motivation to tell others about it. User-generated content is, as a result, a recommendation by a human being for other human beings – in the digital space.

Here are Some Further Advantages of User-Generated Content:

• Social Proof: When you buy online, you can’t examine and try out the product for yourself live and in color. That the information provided by the manufacturers themselves presents the product in a positive light is to be expected before you even have a look at it – accordingly, an unbiased person’s voice who doesn’t profit from praising the product is all the more important. Such an authentic opinion is referred to as “social proof” – and is generally perceived as more authentic and honest than the manufacturer’s own brand ambassadors. With social proof, user-generated content generates one of the most crucial currencies in marketing: trust.
• Brand Loyalty: User-generated content focuses on the experiences of products – not primarily the product itself. Human beings can identify themselves with experiences. They can exchange information about it, give further recommendations, and can join the collective discourse about the brand. This, in turn, can occur in many ways – depending on what matches the brand. Be it competitions or surveys, re-posts or comments in social media, hashtag campaigns, or attractive raffles – all this can motivate a human being to get further involved and make more interactions.
• Crowd Sourcing: User-generated content is created by real customers – as such, generating it comes without a cost for your company. With user-generated content, you hereby receive an effective marketing instrument that frees up a lot of resources compared to planning and creating ads or image clips.
• Multiplicator: Those who make good products want to make it known and accessible to as many people as possible. This works especially well in social media – and here, too, user-generated content plays a decisive role.

Even in the B2B field, user-generated content is a valuable marketing instrument. Adobe has demonstrated how it’s done: The hashtag campaign #createyourstory animated numerous pros and creative companies to share the works they’ve created with Adobe software tools. Adobe itself hereby creates visibility, the brand reaches out to even more people – and, all in all, an interacting community of reciprocal recognition comes to be.

The Benefits are Self-Evident

User-generated content is free while your customers can, in turn, create it in a quick and easy manner without much effort. At the same time, you earn one of the most impactful marketing instruments of today – since user-generated content strengthens your credibility and boosts customer retention.

What are the requirements to achieve this? Naturally, a product that creates awesome experiences whenever your customers use it – and a well-integrated PIM to scale how much use you can get out of your user-generated content.

 

User-Generated Content in PIM – Why and How?

Do you supply multiple sales channels? Are you doing Multichannel Marketing? If so, then you can profit from a PIM – a so-called Product Information Management system. Here, you can store and manage your product data to guarantee consistency and completeness – and export it into all channels on which you want to be present and visible at the click of a button: online, offline, on various platforms, be it desktop or mobile end device, in browsers or an app. Insufficient data quality and inefficient processes are a thing of the past thanks to PIM – your content will be visible everywhere with consistent and complete product information. With your product data becoming cross-media, the entire world of e-commerce is open to you – thanks to a reliable, central, and practical datahub: your PIM.

Is your data complete, relevant, and correct? Your PIM provides the content exactly in the way you want it – and the purchase experience of your customers will always feel individual, uncomplicated, user-friendly, and personal. Thanks to clear product attributes, relevant information, and expressive media assets, your customers can form an educated opinion on whether or not to make a purchase; this, in turn, increases your changes to inspire customer voices and interactions. And satisfied customers are a reason to be happy either way.

In PIM you can, consequently, unify all sorts of product-related content that is of relevance to your marketing strategy. This may include:

Why store user-generated content in your PIM? The reason is simple: If, for example, some valuable product reviews are posted in your online shop then make good use of it and utilize your PIM to also supply other platforms with it, depending on where you market your products. This way, the products are always accompanied by positive voices – regardless of where your customers prefer to shop.

This can also pay dividends for your SEO strategy: Online search engines such as Google use comments and ratings by customers to rank search results more intelligently. As a result, a well-maintained PIM filled with user-generated content can also improve your SEO rankings.

How exactly you make use of your PIM for your user-generated content depends on which target groups you wish to reach out to – and where. You have generated numerous interactions with your last raffle? Awesome, then make sure to mobilize these voices on your Instagram and Facebook, too! For YouTube, on the contrary, you may benefit more from using the most recent mention by influencers or content creators – and your positive reviews will also leave a more lasting impression on Facebook, XING, and LinkedIn this way! Tip: Make sure that you’re also active on support forums whenever possible since this is where real users work with your products, exchange information about it, and seek help!

Even your corporate objectives can smoothly be integrated into your individual use cases for the PIM system. To make good use of user-generated content, you can, for example, define clear, empirically measurable, and time-bound goals and make your success quantifiable in concrete numbers. This way, you can progressively make more and more improvements to come closer to realizing your company’s milestones. Possible factors may include:

• Information (Can the content clear up questions or concerns by users?)
• Engagement (How many likes, shares, and comments does the content receive?)
• Conversions (How many actual purchases are motivated by the content?)
• Brand retention (Did the general perception of your brand improve?)

The PIM system guarantees, consequently, that your online presentation convinces with reliability, consistency, and an overall strong brand impression. Import your user-generated content into your PIM so that you can let the positive voices that speak for your product be heard on all channels univocally – place it strategically for maximum impact.

 

Let’s Conclude with a Few Tips: This is How You Gather User-Generated Content

Possible incentives for your customers to dedicate their time to honor your product with user-generated content may include:

• Competitions / challenges
• Surveys / poll
• Calls for people to share experiences or stories
• Incentives for leaving a product rating (e.g., a raffle or coupons)
• Possibilities to shape future product designs
• Hashtag campaigns
• Free test products in return for reviews

When these measures bare fruits, make sure to manage your growing community, reply to questions, like and share related posts by your customers, thank posters for comments and reviews, and also react to critique in a professional and friendly manner.

Now, enjoy yourself as you put theory into practice!

The Impact of Multichannel Marketing

In the world of marketing, one thing is beyond all question: Customers do not only expect high-quality products but also a smooth purchasing experience across various channels.

And this is where Multichannel Marketing comes into play. Companies are to address their target groups on many different platforms, be it through websites, social networks, or direct sales. In this article, we dive into this fascinating world of marketing and explore the unbeatable alliance of Multichannel Marketing and Product Information Management (PIM).

 

What is Multichannel Marketing?

Multichannel Marketing is the strategic approach of reaching out to customers across multiple channels. To this end, it’s imperative to find just the right mix between online and offline channels in order to adequately address the target group. By utilizing more channels, companies can enhance brand awareness and increase the chance of attracting potential customers. Multichannel Marketing enables companies to make contact with their target group in an even more targeted manner and provide them with personalized offers which, finally, result in higher customer satisfaction rates.

Possible channels are:

• your own online shop
• physical stores
• presence on events and conventions
• e-mail marketing via newsletter
• social networks such as Instagram or Facebook
• guest blogposts on popular blogs
• flyers and product catalogs
• shopping apps
• online marketplaces such as Amazon or eBay
• a product portal which retailers can use to inform themselves about the manufacturer’s product

 

Are there Differences between B2B and B2C?

Indeed, there are differences in Multichannel Marketing between the B2B and B2C field. This is because not only the target group but also the demands, purchasing decisions, and channel preferences deviate between the two.

In the B2B field, the sales process is, often times, more complex and the sales cycle can be longer. Decisions made are tied to higher costs and risks, which is why personal interactions and more comprehensive sales channels such as sales partners and direct sales are preferred.

In contrast to this, the sales cycle in the B2C field is shorter and purchase decisions are more impulsive. Most of the time, B2C consumers make purchases in small quantities and prefer to carry out their research on the internet or through social media. This is the reason why B2C companies put stronger focus on digital marketing, online sales, and digital channels.

However, there are more and more overlaps between the two fields. B2B companies continue to tap more into digital sales channels, whereas B2C companies integrate personal sales as an additional service option. The right multichannel strategy depends on the specific requirements and preferences of your target group.

 

Multichannel Marketing in B2B

In order to get a better picture of what Multichannel Marketing looks like in the B2B field, let’s have a look at a fictitious manufacturer for industry equipment from tools and materials to machines. Our example company adopts a comprehensive sales strategy based on a variety of channels such as online platforms, specialist retailers, sales partners, and direct sales.

This rich scope offers higher accessibility and allows business customers the freedom to opt for their preferred ordering method. They may feel more comfortable buying from a retailer’s online shop or purchasing the products in person from the specialist retail stores of sales partners. Furthermore, there is always the option of direct sales (D2B), where manufacturers can purchase directly from the manufacturer. This holistic approach enables our manufacturer of industry equipment to respond to the customers’ requirements in the best possible manner and provide a smooth purchasing experience.

 

Multichannel Marketing in B2C

An instructive example for Multichannel Marketing in the B2C field would be a retailer who offers their broad product assortment both online via an e-commerce platform as well as physically in shops, pop-up stores, and at conventions. Additionally, such a retailer can tap into a mobile sales channel by offering goods on an app or a popular social media platform such as Instagram for sale.

For customers, this means an abundance of possibilities: They can decide based on their individual preferences whether to purchase it on the internet from the comfort of their own home or seek inspiration in the stationary store live on site. The connection between online and offline channels offers them a purchasing experience without any gaps at the highest flexibility.

Be it B2B or B2C, with the skillful integration of multiple sales channels, companies can not only increase their reach but also interact with customers in a large number of ways. This approach boosts the market presence and does also allow for many opportunities of presenting the own offer in unique ways. This will win the customers’ trust.

 

The 3 Challenges of Multichannel Marketing

Individual Customer Approach:
Today’s consumers are more demanding than ever. After all, they have the privilege of free choice. The range of offers is enormous, everything is available anywhere anytime. In the light of this abundance, it’s no longer sufficient to simply convey a suitable message to the right target group. The key is, much rather, to approach the customer at just the right time – namely, when her needs, attention, and willingness to buy is at its highest. Addressing customers in an individualized manner is central for capitalizing this decisive moment and building sustainable B2B or B2C relationships.

Tailor-Made Campaigns:
Humans are habitual animals – a figure of speech all of us have already come across. Your customers, too, have their own habits when it comes to browsing certain channels. And, just as the saying goes, old habits die hard. Customers will not change their ways no matter how great the incentive. For companies, therefore, it’s imperative to optimize their marketing measures across all channels – continuously, with further and further improvements. In the process, it’s important to provide a flexible combination of related channels and provide customers of individual touchpoints with targeted micro-campaigns. The most important objective is to close the gap between you and the individual customer by adapting to the demands of the specific situation, hereby amplifying the relevance of your message.

Qualified Analysis of Channels and Touchpoints:
In a marketing environment with ever-increasing interconnectedness, it’s becoming increasingly more difficult to analyze the real contribution a single channel, campaign, or touchpoint makes to the overall sales and profits. Knowledge of this, however, is decisive for reliable success control as well as the steering of marketing and advertisement measures. Only if you can trace back which aspect has contributed to a higher engagement rate of your target group, you can adequately judge whether or not your budget and resources have been allocated optimally.

Mastering these challenges demands an even more well-planned interconnection of the different marketing channels. Only this, after all, can establish an efficient flow of data and information. This strategic evolution of Multichannel Marketing is referred to as Omnichannel.

 

How does Multichannel Differ from Cross-channel and Omnichannel?

These three strategies differ as follows: In Multichannel, the various channels operate independently of one another, without any overlaps or interaction. Customers can’t jump directly from one channel to another. When it comes to Cross-channel Marketing, in contrast, there is a data exchange between channels – but the message may not necessarily be consistent across all of them. Here, customers can switch between all channels between which such data exchange is possible. Omnichannel Marketing takes this approach even one step further by smoothly interconnecting all these channels with one another. Every channel embodies the uniform brand message together with all usage information. Only this can guarantee that customers will enjoy a customer experience without any gaps.

In short: The main difference between Multichannel and Omnichannel Marketing consists in the fact that Omnichannel Marketing offers a smooth, integrative experience for all channels, while Multichannel Marketing merely means that many channels are utilized but without such a smooth integration. Cross-channel Marketing occupies the middle ground between the two, though the boundaries are fluid.

 

How can a PIM System Support Your Multichannel Strategy?

Given the large number of different channels, it’s time-consuming to provide the respective product information in the right form per channel, for example the text length of product descriptions or the number of images. Especially considering that you also need to continuously maintain each channel. This is far removed from what a single source of truth has to offer. In a PIM system, product information is managed in a media-neutral manner and independent of specific target channels. For exports into online shops or for physical flyers, this data can then be adjusted for relevant channels. In the process, you may, for example, choose a shorter product description than for the online shop while also limiting the number and adapting the choice of images accordingly. With the help of the quality rules configured in the PIM, you can make sure that the product data quality does always conform with the target channel. Accordingly, the implementation of new channels such as apps for mobile end devices is easier to handle since the master data is already well-maintained and available in the PIM, so all that’s left to do are some channel-specific adjustments.

Content may be King, but Content Strategy is Queen

By now, it has long become a truism in the world of marketing: “Content is King!” This is an uncircumventable fact, now as then – especially in e-commerce and online retail. After all, those who want to successfully sell their products online must convince, satisfy, and inspire customers anew every day. And the bread and butter for this is good, high-quality content.

However, where does such content come from? Nowadays, the name of the game for companies is to plan, create, and distribute top-notch content from text to media across the entire customer journey. Marketers will be quick to add: not all content is high-quality content. And this is the precise point where the Content Strategy comes into play, providing you with an operative framework for all your future content cycles. Only with a targeted and individualized Content Strategy can you guarantee that your content fulfills the right objectives and is useful to relevant target groups. This is why smart strategizing functions as an integral part of the Content Marketing of manufacturers, brands, and retailers. You want to know how to design a meaningful Content Strategy? If that’s the case, you should keep on reading. In this blog post, we let you in on the most important steps and give you valuable tips for creating an effective Content Strategy yourself that fits your company.

Step 1: Get to Know Your Target Group

Do you know your customers? Do you know what they want – or do you only believe that you know what they want? In order to create a suitable Content Strategy, you are to familiarize yourself with your customers. Only this way can you produce content that your potential customers actually want to consume. One objective method for quickly getting acquainted with your target group is the Buyer Persona. As part of this method from the world of marketing, you develop a concept of the needs, pain points, and wishes of your ideal customer. Subsequently, this helps you in empathizing with your target group and creating made-to-measure content.

Furthermore, it’s key to listen closely to what your customers have to say by systematically gathering feedback and analyzing it. You can collect feedback by your customer base by utilizing tools such as Google Analytics or something as simple as product return forms. Among other places, social media is a top platform to learn about your target group. Be it in the form of polls or your direct interaction with them in comments – this is where you will gain insights about your target groups straight from the source.

 

Step 2: Don’t Forget about SEO!

Define your most important keywords and topics. Now that you’ve learned more about your customer, SEO should be the next topic on your agenda. Make the beginning with research on keywords, themes, and search criteria which your customers type into search engines. Relevant keywords may fall on both sides of the spectrum: very frequent and popular keywords, on the one hand, or keywords targeting long-tail products or market niches, on the other. The advantage of frequently searched keywords is that you can utilize them to reach out to a large audience; the disadvantage is that you face an equally large competition, meaning that your company may not make it to the top 3 search results. On the opposite side, less people base their searches on niche keywords, though they still prove their worth since they slowly but surely accumulate brand visibility and carry their weight on the search results pages of search engines. Our tip: Striking just the right balance is key! Specify a broad spectrum of the most different keywords in order to make sure that you’re accounting for all relevant search criteria.

For your keyword research, it’s helpful to know which keyword is relevant to your target group at a given stage of the sales funnel. Depending on the stage they’re currently in, consumers have different questions for which they expect a good solution. For example:

• What is Content Strategy?
• How important is Content Strategy?
• How do I create a Content Strategy?
• Who is the best service provider for Content Strategies?

 

Steps 3: Content Knows Many Forms

The digitization and the great technological progress that comes with it has made it much easier to make good use of all sorts of content formats. How does the saying go? Content is everything and everything is content. As part of your strategy, define what kinds of content you want to provide in which format and on which target platform. Popular formats include for example:

• Video
• Infographs
• Product content in form of product data and information
• Checklists
• Whitepapers
• E-books
• Use cases und success stories
• Podcasts
• Blogcasts

There is a rich offer of content formats to choose from. Which is why, as part of your content planning, you should focus on determining which formats are best suited for your target group. However, also keep in mind what kind of formats your team is best capable of producing.

Step 4: Create a Rock-solid Content Foundation

To produce high-quality content, you require a well-founded basis for all data and information. Be it podcasts, blog entries, social media posts, or exciting product descriptions – each and every type of content builds on correct and up-to-date input. When creating content for your product, for example, it’s necessary to communicate the current technical specifications. Incorrect product content translates into a negative purchase experience. The consequences: higher return rates, bad reviews, and, in the worst-case scenario, your brand image does also take a hit. To take preventative measures against such outcomes, your Content Strategy should incorporate all kinds of content – even those which seem banal, if not even trivial: product names, product properties, etc.

This content is usually scattered all over the company – in excel tables or PDF documents, in this or that corporate department. To make sure that nothing is overlooked, you should first establish a central data foundation for your product content. With a PIM system, this poses no problem whatsoever. As the single source of truth, the PIM system will guarantee that your data basis is always up to date and consistent across the board – allowing your marketing team to always draw from contradiction-free data as input for their content.

 

Step 5: Create an Editorial Calendar

For a successful strategy, the right content plan is half the battle. A content plan is much like the guiding thread running through all topics, formats, and personnel resources, keeping everything together. With it, you keep track of all content ideas and situate them in their adequate time frames. A blog entry on gingerbread by a food supply chain, for example, is much more suited for Christmas time than the summer season. Accordingly, experts recommend planning marketing releases in quarterly periods.

In particular, the editorial calendar is a useful tool for managing your personnel resources. Always keep in mind: content is teamwork! Accordingly, the knowhow of specific topics is distributed among your company’s various departments. Note down in your editorial calendar who provides the input for what kind of content, when they’re free to do so, and what other resources are required to finalize things – this may include, for example, graphic designers, social media managers, editors, etc.

Create an editorial calendar in which each and every aspect of the content is assigned to the respective person in response. This will give you the overview required to manage content cycle upon content cycle.

 

Step 6: Drum Up Business

Content Marketing doesn’t stop with the release of your content. Neither the best blog entry nor the most exciting podcast episode will bring in the desired results if it doesn’t even reach its target audience. As soon as you’ve produced the content, the name of the game is to distribute it to the relevant channels and beat the big drum for it.

While doing so, keep in mind that the channels on which your content is shared are equally as important as the channels on which they’re actually released. Target the channels on which your target group is active. If your target group consists of consumers in age groups older than 35 years, Snapchat may not be the optimal choice to promote your content and brand.

Data is King!

To establish the perfect strategy as part of your overall Content Marketing, you will need one thing before anything else. A perfect, consistent data foundation – be it your customer’s feedback and activity data or technical data which serves as the meat of your content. In a digital world, data is money and power – as the saying goes: data is king!

To this end, it’s also important for the success of your Content Strategy to collect all this product data, centralize it, and automate the corresponding product data processes. This is because the sheer quantity of data with which we find ourselves confronted on a daily basis can no longer be handled manually.

In just a few quick steps, your product data can be put to good use and you can set up an effective Content Strategy. You can find out how this works in our latest whitepaper: Content Strategy 2.0. Download it now for free and benefit from our expertise and the know-how of our product experts.

Why is Customer Experience More Important Than Ever?

The consumer’s expectations of companies and their products is higher than ever – and for a good reason: Online retail is booming, the markets are becoming increasingly more transparent, the availability of products is more convenient than ever, while the price difference is shrinking. As a result, the competition is growing. It’s for this reason that companies can no longer make it with good products and satisfied customers alone. The magic word of today’s corporate success is Customer Experience (CX). This field is the focus of attention of corporate Marketing departments. However, what exactly does the concept of Customer Experience even amount to and how can your company improve it? Find out more on this, as you read on right here.

 

What is Customer Experience?

Customer experience encompasses the set of all lived experiences by both potential and existing customers of a company or brand, across the various touchpoints (customer–company interfaces) of every phase in the Customer Journey. Every interaction can positively or negatively shape a customer’s view of the company. Those who manage to design a unique Customer Experience in all points of contact and boost the customer’s satisfaction can secure loyal fans in a sustainable manner when it comes to their own products and brand. In itself, the idea sounds quite simple, right? Though, what measures are required for turning satisfied customers into inspired fans?

 

How do You Turn Customers into Fans?

The customers of today are well-informed. With their smartphone ready to hand, they can get all the information they need on any product or service regardless of time and location. Furthermore, with the emergence of the age of digital transformation, the number of digital touchpoints has also skyrocketed. Here – where personal contact and advice by phone used to be the essential points of contact with customers –, online shops, social media, and e-mail marketing now reign supreme as indispensable measures. For companies, the name of the game is to reach out and inspire consumers across all touchpoints with target-group-oriented information and just the right content for their use cases, hereby also promoting customer loyalty. This is a challenge not to be underestimated, considering that the set of relevant information multiplies with the number of products, be it descriptions, texts, media assets, videos, or product images about said products.

Only those, however, who manage to design a positive customer experience can lay the foundation for sustainable customer retention. Loyal customers don’t only purchase your brand products but do also occupy themselves with your product portfolio both online and offline. They’re happy to share their positive experience with family and friends or via social media channels, hereby posing as valuable and faithful brand ambassadors.

There is hardly any marketing measure which is as effective as positive feedback from satisfied customers and the word-of-mouth advertisement resulting from it. Have you also felt this wow-experience after an all-around wholesome online purchase before? How many people did you tell about your last few positive purchasing experiences? Did you already pay any of these stores another visit? Those who are content with how the purchasing process went are even willing to pay more.

This is why it’s important to take appropriate measures for a cutting-edge customer experience across all points of contact along the whole Customer Journey. Mastering this challenge makes a professional Customer Experience Management (CEM) indispensable.

 

What is Customer Experience Management?

Successful Customer Experience Management is an integral part of any CRM and brings – staying true to the principle of Customer Centricity – the customer into the focus of attention. In fact, this trend does even go so far in its strife for improving the purchasing experience that many companies do no longer limit themselves to the concept of “customer” and, instead, shift their center of attention to the underlying human being as part of the Human Centricity approach.

With well-defined strategies and measures from the fields of Marketing and Management, Customer Experience is supposed to be controlled through the positive interaction with the respective touchpoints, hereby boosting customer loyalty. The objective of this method is generating a higher return on sales.

To this end, it’s crucial to identify the relevant target groups and their needs (Buyer Persona) as well as to optimize all touchpoints with which customers interact as part of their Customer Journey – all on the basis of the target group’s purchasing behavior. Mapping out both, a Buyer Persona and the Customer Journey, lays the foundation for a successful Customer Experience strategy. In this context, one thing can already be anticipated in advance: Handling customer-oriented e-commerce by manual work alone is nigh impossible. Yet, there’s no reason to worry whatsoever. There are suitable tools which allow you to automate and optimize processes to guarantee that measures to improve the Customer Experience provided by your company will be a surefire success.

 

All-In-One with the Right Tools

When operating within the scope of Customer Experience Management, it’s key that all teams across your entire company are working toward a unified Customer Experience in a coordinated fashion. This does also include the consistent use of tools across several departments. Processes should flow and transition smoothly into one another, while information should always be transparent. It’s the right combination of tools and well-defined processes that enables department-overarching CX. A good example for this are Customer Relationship Management systems which allow you to organize the customer information which is otherwise left scattered over several departments.

Depending on the product, touchpoint, target group, and use case, the customer always requires a different set of information. This is why a PIM system (Product Information Management system) is a must-have tool for groundbreaking Product Experience, i.e. the totality of responses during all stages of a customer’s research and purchasing process. The equation is quite simple: no successful Product Experience without top-notch Customer Experience. Make your products more experienceable and intuitive by not only marketing your products but also the underlying values and solutions. With consistent product data as your unshakable foundation, you can quickly collect the right data and descriptions for the right product and even distribute them at the right time to the right target group at the click of a few buttons.

You should only move on to analyze your customer’s demands after establishing this secure basis. This is what will allow you to realize suitable measures and processes for good Customer Experience. For this analysis, in turn, you will need to know what your customers want – here, feedback is the magic word. In principle, customer feedback in any form can be fruitful – be it positive or negative. Once all available feedback has been gathered, you can proceed by evaluating it and render it operative for your Customer Experience Management.

To objectively measure such empirical data, the Net Promoter Score is employed. In short, NPS. This key performance indicator represents a company’s customer satisfaction rate. In general, this score measures how costumers reply to the question: “How likely is it that you will recommend this company?” With the Net Promoter Score, you can find out how loyal customers are to a given company and if they would make use of its products and services again or even recommend it to others. The reply is measured by an evaluation scale form 0 (unlikely) to 10 (extremely likely).

Those who give a rating of 9 or 10 are referred to as promoters. In this case, your hard labor is already bearing fruits and convincing customers. Detractors, on the other hand, are defined as all those customers who give a rating between 0 and 6. Customers who give a rating of 7 or 8 are classified as being indifferent. All in all, you can calculate your own company’s NPS using the following equation:

NPS = Promoters (in percent) minus Detractors (in percent). As a result, possible NPS values range from plus 100 to minus 100.

 

Customer Experience: More Than Mere Buzzword Bingo

The significance of Customer Experience for companies far exceeds a simple definition which would reduce this complex phenomenon to the field of Marketing alone. Current trends indicate that a positive CX will advance to be a more and more essential factor for purchasing decisions, be it online or offline, be it B2B or B2C. Today’s customers want a simple and quick solution for their challenges. If the Online Marketing strategies or your well-groomed (digital) touchpoints succeed in optimizing the experience customers have while checking out your offers and buying your products, this will positively influence both customer satisfaction and retention. This, in turn, translates into sales and corporate success. Such strategies for improving Customer Experience, however, can only succeed if your entire company looks at things through the customer’s eyes and continues to do so throughout the whole Customer Journey. To make your CX Management strategy click together, all teams need to be on board and live the processes defined.

This also includes the integration of a software solution with which you can not only pool together all marketing-relevant information and assets, but also manage, enrich, and distribute your products in a contextualized manner. This is the basis for your unique Customer Experience. Equipped with this, you can transform satisfied customers into loyal fans of your company, your product, and your brand, while also staying streets ahead of the competition.

We support you on your path toward ideal Customer Experience – with our expertise and our PIM software.

Content Marketing is King!

The name of the game is Content Marketing: it’s been all the rage for the past few years, yet how many people out there truly have a good grasp of the principle behind this type of Online Marketing? What even is Content Marketing? What kind of companies can profit from putting it to good use? What expertise is required and what tools can support you in realizing it?

If you hesitate to give an answer to these questions straight away, you should most definitely keep on reading. In this blogpost, we’ll provide you with a comprehensive overview of the topic of Content Marketing and demonstrate to you how to implement this principle efficiently in your company. Before we drill deeper into the topic, however, let’s first clear up the core concepts in play.

 

What is content?

In general, content refers to various types and formats of arranged data, such as text, image, audio, or video. In Marketing, content is usually distributed for free and categorized into the following content formats…

• Text-based Content: whitepapers, online PR, blog entries, articles for online and offline magazines, guest contributions, e-books, reading recommendations, interviews
• Audiovisual Content: videos, online sessions, workshops, social media livestreams, explanatory videos, image videos
• Audio Content: podcasts, social audio
• Images: photos, info graphs, slideshows
• Application Content: product demos, price calculators, product configurators
• Social Media Content: social media posts, how-tos, tutorials, guides, stories

What is Content Marketing?

Content Marketing defines the strategic planning, creation, and distribution of content, tailor-made for a target-group-oriented approach with the aim to convert the defined audience into new customers. To this end, the focus doesn’t lie on the marketed product but, much rather, on the users and their use cases.

Content Marketing is an efficient option for convincing new customers and strengthening your already established customer retention rate. When it comes to implementing Content Marketing successfully, your branch doesn’t matter – be it industrial corporation or SME manufacturer, everybody can inspire their customers with the right content. What’s more important is that the content is fine-tuned to fit your customers and is always relevant. To this extent, this form of Marketing stands in direct opposition to classic advertisement.

 

Pushing or Pulling? Push-Marketing versus Pull-Marketing

Classic advertisement is usually based on the push principle. For example, a well-placed ad banner calls attention to the offered product or service. The disadvantage of Push Marketing: classic advertisement continues to lose influence and ground. Users have long gotten used to the flood of ad banners to which they are exposed day in day out – more and more users ignore or block it entirely.

In contrast to this, Pull Marketing presents itself as an alternative. Here, the interaction is actively sought by the user. They do their research and look for relevant content and information on their own. For companies, everything now revolves around meeting the customer on their own ground with target-group-oriented content and offering just the right solution in the form of their products or services.

This is the great advantage of Content Marketing: it delivers precisely the information which the customers are searching for and provide added value on top of that. With smart storytelling and a well-thought-out Content Marketing strategy, you have a sustainable way of shifting the customer’s focus of attention away from the competition to your product as the right solution.

 

 

The Focus is on Your Target Group

Before you go about investing your brainpower into coming up with a suitable strategy or fitting content, you should first ask yourself the following question: “Who is my customer?” Only if you have a – clear and distinct – answer to this question will you be able to convince and inspire your users with relevant content. The more well-defined your target groups are and the more knowledge you have of them, you’ll be able to approach them more naturally.

One method which can help you in getting a clear-cut concept of your target group is working on a buyer persona. A persona is an idealized customer who will represent your entire target group.

 

Storytelling: Customers Love Stories

After figuring out who your customers really are and what content and topics are relevant to them, you can think about the “how” of presenting your content. The keyword is: storytelling. Content must be presented in an intuitive, exciting, and memorable manner for it to fully unfold its effect. In its bare bones, it’s about delivering a narrative to consumers. After all, it’s easier for our brain to process and recall information when presented in the form of a well-structured story. Storytelling is not about delivering novel-like content. Much rather, you should give your content a structure, a relevant topic, and a guiding idea. The goal is to create an image in the consumer’s mind about how your brand or your product can be useful and valuable. Be it the category of fashion, food, music, or cars, your company is there to be remembered. And stories contribute to this in a long-term manner.

 

Content Marketing Throughout the Customer Journey

The question with which you see yourself confronted right now is: Where do you approach your customer and what content is meaningful? Content Marketing aims at meeting your customer at every touchpoint throughout her Customer Journey on their own ground with tailor-made content. Such touchpoints can be explained using a model from the field of Marketing: AIDA.

1. Attention
In the Attention Phase, users will become aware of your offer or product. This phase is rather unspecific since the user won’t think about making a purchasing decision just yet. The optimal content for this phase is informative, comprehensive, and covers the broadest possible scope.

2. Interest
In the second phase, potential customers conduct research and collect facts. To this end, content is to be provided which is in-depth and detailed.

3. Desire
Once the customer thinks she has gathered sufficient information, she commits to the decision-making phase. Here, she’ll be looking for the right company and provider, which is why supplying subsequent information and a concrete problem solution is an absolute necessity. The dialog with the customer now occupies center stage.

4. Action
In this final phase, the conversion of leads into customers takes place. Offer all import details about your service post purchase, together with further references and offers.

 

 

4 Points You Must Look Out for when Doing Content Marketing

1. Content Marketing is a process, not a one-time commitment
Things keep on developing and should be constantly re-adjusted to fit your target groups acquired tastes.

2. Content Marketing requires strategy
Successful Content Marketing entails a concrete marketing strategy. This helps you when it comes to creating the planned content and is the first thing which you should work on in order to realize any of your Content Marketing activities in a targeted and systematic manner. Any Content Marketing strategy pursues three foundational goals:

• How do I position myself as a brand?
• How do I win customers?
• How do I retain customers and make them come around again?

3. Content Marketing represents your company and your brand
Content Marketing serves the purpose of presenting both, your company and brand, in the best possible light. Furthermore, Content Marketing is an integral part of your overarching communication strategy about how your company reaches out to people. Make sure that your Content Marketing strategy smoothly synergizes with the other components of your entire communication strategy before starting content production.

4. Content Marketing is based around the Customer Journey
Content should always be centered around the customer’s needs. To this end, as we’ve already established, you’re required to know your target group like the back of your hand.

 

Content is King! And it will Stay that Way

Since companies want to position themselves sustainably and sell products to their target groups, Content Marketing is – and will continue to be – an indispensable tool. Especially when it comes to Online Marketing and SEO, it’s the content that matters. After all, the content is what is processed and rated by search engines such as Google and co.

The criterion for good content is whether or not it can provide added value and concrete solutions to the consumer. With strategic storytelling, customers always get the relevant content they’re looking for at the right touchpoint. You solve the challenges you are confronted with and, at the same time, convince with your brand, product, and company.

To make sure that your combo of product strategy and Content Marketing will be crowned with success, it’s essential to know your customer and respond to individual needs at the suitable touchpoint. At first glance, this looks like a mammoth task. But don’t panic! With the right tools for automating both, your product data processes and content distribution, this will be nothing short of a cakewalk.

With a PIM system, you pool your product content in a central system, manage it independent of corporate teams and departments for all touchpoints, and export it into all touchpoints. Even if a PIM doesn’t take care of coming up with the Content Marketing strategy itself, it still contributes substantially to getting the relevant content to the right target group, while also guaranteeing for consistent data across the board.

Inspire Customers with Targeted Recommendations

In stationary retail, good salespersons can usually make the difference between success and failure in sales. While a lot of energy is invested into the continuous training of individual store employees in stationary retail, the optimal product consulting for online shops is widely considered to be still a mere theory in the making. Here, customers are usually left to their own devices. Yet, there is such great potential in e-commerce just waiting to be put to good use. After all, customers always value a positive purchasing and product experience, regardless of physical or digital store. While it’s true that today’s shop systems offer features such as context-sensitive filters which allow users to find the right product among the overabundance of information, what usually falls flat is the product consulting as you know it from stationary stores. For example, store employees can provide you with good alternatives and accessories for what you’re looking for based on your previous visits and purchases. This doesn’t only translate into a positive purchasing experience for the customer but also more sales for the company. However, is it even feasibly possible to provide a purchasing experience in online commerce that is similar to stationary retail? The solution is to provide your customers with the right content as targeted recommendations. In short: Recommendation Marketing is the keyword. A simple solution to put this into practice is using a Recommendation Engine.

Everything’s a Matter of Taste? Score with Relevant Content

At different spots in your shop, further articles can be displayed to customers. Here, the decisive factor is relevance. Only if the products displayed fit your shop visitor’s taste can you motivate a purchasing decision. And this is also where the benefits of a good Recommendation Engine come into play. True, almost every shop system uses recommendations these days – yet they usually still lack in efficiency given the missing data foundation for recommending what is actually relevant in a given use case context. In fact, bad recommendations can even lead to frustration and, consequently, the canceling of the purchasing decision. A classic example for this is recommendations for products which aren’t available in the right size; such recommendations cause more harm than good.

Recommendations come in headlines like “You may also like…” or “People who buy this product also bought…”. While such headlines aren’t really catching your shop visitor’s attention anymore nowadays, the actual content still plays a significant role. The content must be spot on if you want to increase the probability of purchase and, consequently, the profitability of your web shop. The question what makes for suitable content isn’t easy to answer and shouldn’t be overgeneralized. Every human being has individual preferences and is interested in different products.

 

Personalized Content is King

To truly display what is relevant, information about the user’s movements and, ideally, also related actions are required. The more you know about your digital visitor, the easier will it be to personalize the respective content. In general, you can distinguish between two main strategies which you may also combine with one another for good recommendations.

1. The Recommendation Engine Processes Information about Users

Each visit, consumers leave trails which can be utilized for a precise product recommendation. For example, you can directly process information on what articles have been viewed in the past, what articles have been put into the shopping cart, and which articles have actually been bought into recommendations. How this data is put to use depends on the assortment of the respective shop. When it comes to consumables, it makes sense to recommend the same item again during the next visit; when it comes to products for daily use, in turn, already purchased articles should rather be excluded. The true heavyweight class, however, is using data about the past to predict future needs. Thanks to Predictive Analysis, you can use this data to calculate the so-called NBO (Next Best Offer).

In the process, a mathematical model analyzes a variety of past sessions to predict what will be bought next. So that recommendations may not only include matching products in this context, but also product categories or even editorial blogposts from the Content Marketing team, in order to create the optimal online shopping experience. Pursuant to data protection regulations, this kind of personalization requires explicit user consent. The standard method for getting the user’s consent is basic cookie banners which are already in use in every shop by default anyway.

2. Inferences Based on the Currently Viewed Article

For example, if somebody is browsing the product details page of a drilling machine, recommendations can be utilized to display other drills with similar properties or additional parts for upgrading the base product. Both translate into a higher customer satisfaction rate and more corporate sales. In particular, this is important when the article is accessed via Google or other search engines so that the user still lacks some context and information.

To guarantee optimal success, you should always combine both rule types in your shop. This way, you can display the right articles for products on the details page to users which exclude already purchased articles or show preferred NBO products from the corresponding product category. Furthermore, you can also consider further factors such as the current stock count or popularity and sales rate.

 

Data is the Alpha and Omega

The more information about shop visitors you have ready-to-hand, the more precise your recommendations will turn out to be. Engines also process, as discussed before, movement data such as information about viewed, bookmarked, and purchased articles. Such data is either put to use directly or the Recommendation Engine uses Artificial Intelligence to calculate the most relevant product based on probability and statistics.

The optimal rule or optimal formula as the “cure-all” for any possible use case doesn’t exist. The rule set and, consequently, the recommendations generated out of these rules must match the given use case of the visitor and must also be adjusted to the current phase of the Customer Journey the visitor is in. A visitor may be in the phase of checking the scope of available products or might already be looking for a concrete article – both phases require different recommendations.

In all cases, a Recommendation Engine can’t only help you in boosting the sales of you company, but can also help you to focus and guide the masses of visitors into the direction which is the most efficient for your shop and company. Two further examples on how to use targeted recommendations to support both your Online Marketing and Sales team at the click of few buttons are the preference for flagship products or giving more exposure to slow-selling articles. To make this run as smoothly as possible, consistent data is an absolute must-have. Imagine yourself trying to manually collect all the movement data about your customers together with all product data, to then distribute it into intended marketing channels. That’s simply impossible. In order to get your data in top form in the most resource-efficient manner possible, it’s worth assessing whether a PIM can further your corporate growth. PIM functions as the central datahub for your entire product content. Since everything is neatly pooled together and centralized, it’s a simple task to work on data collaboratively across multiple teams and distribute it into required channels. As you can see, generating more sales and optimizing both your Online Marketing and Product Management is far from witchcraft as long as you capitalize on the possibilities which digitalization brings to the table in a smart manner.