Technology has not only revolutionized how organizations conduct business but also how consumers interact with them. Businesses can no longer operate by adopting a cookie-cutter approach toward their customers, who now demand customization. Digitalization has further brought customers to the forefront of the economy, and backed by the power of options, they expect brands to not shy away from going the whole nine yards and they do not want any compromises on this. What makes meeting their demands a challenging pursuit is the ‘trend culture’ – where trends gain and lose momentum in the blink of an eye – and not responding to them on time potentially means losing a considerable customer base.
What has necessitated the change?
Businesses must understand that while digital commerce might be an extension of eCommerce, they are not the same. E-commerce ruled the industry for over a decade, but now the economy has digitalized itself to the extent that over 89% of C-suite leaders consider digitalization a crucial element of all growth strategies. So, what are the outcomes of this wide-spread adoption of digital technology? They include:
Omnichannel retail
One of the most important outcomes of digital commerce is omnichannel retail. Digitalization has enabled different channels to operate individually and together. This interconnectivity has expanded the reach of businesses exponentially, enabling them to enter untapped markets.
A consumer-centric economy
The economy, on the whole, has come a long way from the product-centric era to a consumer-centric one. Today’s consumers know what they want and they demand it. And with the assistance of digitalization, they manage to obtain what they seek. While several businesses may find this challenging, those that are proactive and agile, benefit monetarily and earn loyal customers.
The never-ending change
Technological advancement has set in motion a change culture. With every advancement in technology, the paradigms of the economy shift. This puts in motion a continuous cycle of advancement and shifts, where the quantum of the shift is directly proportional to the level of advancement. While constant change and upgradation are complex, it is equally rewarding for those who crack the code to implement the change when it is at its peak.
As the economy evolves, it is pivotal for businesses to match strides with the fast-paced trend culture. But the question is, how? One of the answer lies in leveraging the power of composable commerce and product information management (PIM).
Understanding composable commerce
Businesses must look beyond pre-packaged, all-in-one solutions and invest in customizable platforms. Composable commerce– expands the scope of business through platforms. Over 79% of organizations have already implemented this approach in some form.
Unlike the dated monolithic solutions, with all the functionalities tightly integrated into a single platform, composable commerce builds on independent blocks by leveraging application programming interfaces (APIs). Composable commerce provide businesses with a platform to develop and deploy a collection of functionalities independently. With opportunities for expansion and growth, composable commerce aids in flexibility to accommodate the ever-changing consumer demands and market trends.
Why is PIM relevant?
As data transforms how businesses operate, there is a steady shift towards an information-based, data-driven future. However, businesses find it challenging to manage their product information due to proliferation of product data and omnichannel accessibility . What serves as an ideal solution to this is PIM; it’s a central repository that collects, controls, and enriches product information in a structured and organized manner for businesses. It is popularly known as a business’s single source of truth. PIM has a global market size that was valued at $9.90 billion in 2019 and is set to grow to $59.25 billion by 2027, with a CAGR of 25.2%. Undoubtedly, it can serve as an essential element in a composable commerce, and can be integrated seamlessly with other systems through APIs.
With PIM incorporated into the composable commerce architecture, businesses can deliver accurate and consistent product data to customers by managing essential product information and attributes. This makes it a crucial component of composable commerce.
The end goal will always be customer satisfaction
With the shift towards a customer-centric economy, their satisfaction becomes the ultimate priority that businesses strive to achieve. And with this shift, the meaning of satisfaction has also morphed. For over 82% of consumers, exceptional service is crucial, as they no longer purchase a product, rather, they invest in an experience. Hence, only an exceptional experience can ensure customer satisfaction.
We are fast approaching the golden era of pervasive digitalization, where the economy thrives upon omnichannel retail. In such an economy, to deliver a remarkable customer experience, a prompt change adaption process is crucial. And businesses that capitalize on the capabilities of API and harness composable commerce and PIM will certainly reap benefits.
Leveraging the power of composable commerce and PIM
In a digital-first economy, composable commerce and PIM are the way forward. However, delivering an exceptional customer experience while future-proofing businesses against the volatile dynamics of the economy is a complicated task. What businesses can thrive on is better control over data, limitless flexibility, and seamless possibilities through APIs.
Simplification via information
While customers are aware of what they want, one demand remains constant: simplification. Consumers wish to have a hassle-free shopping experience and it can be powered through information. Consistent and accurate product information simplifies the purchasing process for customers by eliminating discrepancies and confusion. Assisting buyers to make informed decisions based on the information provided is one of the primary benefits of composable commerce and PIM.
Better control over data
Data is not only crucial for the customer but also for businesses. A data-rich ecosystem can assist businesses in understanding the shopping habits of their customer and the various nuances behind every action. Strategies are built on such data to attract a broader customer base while retaining the current one. PIM also ensures better control over product data, enabling businesses to deliver a seamless and reliable customer experience.
Boundless flexibility
With the perennial changes in the economy, businesses need a flexible platform, which accounts for quick and disruption-free migration from the older or redundant version to the newer one. Therefore, it is pivotal to implement a system that can be altered and customized completely or partially based on business requirements. Powered by APIs, composable commerce allows limitless flexibility in integrating different components and services.
Creating compelling experiences with ease
The competition between businesses is no longer limited to the quality of products offered. Now, it has extended to the measure of satisfaction that consumers can derive from it. Composable commerce and PIM can enable businesses to create compelling and differentiated customer experiences effortlessly. And the flexibility to alter these solutions as per customers’ needs has allowed businesses to introduce new features, rapidly iterate, and optimize customer experience.
Data-backed future-proofing
Future-proofing seems like a far-fetched reality in today’s volatile economy, especially with the intensely increasing volume of data-driven businesses. However, businesses can make it happen with data insights enabled by PIM and composable commerce.
The future is limitless
It goes without saying that composable commerce and PIM are key to navigating the dynamic business landscape and thriving in the digital-first era. Composable PIM solutions facilitate modular components that can be seamlessly integrated into the overall commerce architecture. They have transformed how the market operates with simplified functioning and accurate product information across multiple sales channels. However, backed by the power of real-time synchronization, AI-powered automation capabilities, and advanced analytics, the future has limitless possibilities.
(Disclaimer: Dietmar Rietsch is CEO of Pimcore. A serial entrepreneur with a strong sense for innovation, technology and digital transformation. He is a passionate entrepreneur who has been designing and realizing exciting digital projects for more than 20 years. The views expressed here are his own)
