how to support multichannel and why it's important - greg wong, heiler

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How to Support Multichannel

and Why it’s Important Greg Wong, CEO

| September 27, 2011

2

Agenda

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» Multichannel Trends

» Effects on Manufacturers & Distributors

» Multichannel Pain Points

» PIM Solves the Challenge

» About Heiler

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Multichannel Trends: eCommerce


4

Multichannel Trends: eTailers


5

Multichannel Trends: Print Catalogs


Source: USPS & Comscore

•Catalogs double sales (new & existing customers)

•Increase website traffic (new & existing customers)

•Catalogs move consumers into the sales funnel

•Buyer conversion rate is higher for recent catalog recipients

6

Multichannel Trends: Mobile Commerce


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Multichannel Trends: Social Commerce


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Multichannel Trends: Value to the Consumer


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What does this mean for your company?


» Consumers are searching and purchasing products

from various channels.

» In order for consumers to feel confident that they are

making the right purchase you must have up-to-date

product information for all of your sales channels.

» Perfect product data leads to higher conversion rates

and return customers.

» Enable the long-tail strategy for higher margins on

niche products.

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Long-Tail Strategy: Business Values

Gartner PIM Heiler

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PIM supports Long-tail Strategies of our Customers

The Business Value of Product Information for E-Commerce

Dealer, Retailer, Distributor

HIGHER MARGINS Through a collaborative PIM supply chain

PIM enables Longtail Business Models

0

4

8

12

16

20

24

28

Cross Margin Progression & Trend

Longtail

Top-Seller

Commerce

Site

Enterprise

Product

Information

12

PIM Increases Conversion Rates and Margins


Commerce

Site

Enterprise

Product

Information

Customer

Profile

13

PIM Increases Conversion Rates and Margins


MORE ORDERS

Who? - is interested

- is my customer

- was here before

- visits me first time

- visits me often

- buys at my site

HIGHER

MARGINS

What? - Product

- Price

- Brand

- Benefits

- Availability

- Popularity

How? - to find

- to appear

- to afford

- to compare

- to receive

- to buy

Commerce

Site

Enterprise

Product

Information

Customer

Profile

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PIM = Difference Between Visitors and Buyers


INCREASING CONVERSION

RATE Through better Product Information

0 10 20 30 40

PIM enabled onsite facetted Search Increases Conversion +40%

0 60 120 180 240 300 360 420 480 540 600

PIM enabled targeted Merchandising Drives Response Rate +550%

0 10 20 30 40

PIM enabled Personalization & Recommendation Increase Order Size Rate +15% 0

4

8

12

16

20

24

28

Conversion Progression & Trend

Buyers

Visitors x 100 = Conversion Rate in %

with PIM

without PIM

Commerce

Site

Enterprise

Product

Information

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Enterprise Publishing: 30% Quicker Time-to-Market

PIM_CL_BV_Print

14 Weeks

7 Weeks

10 Weeks

5 Weeks

0

5

10

15

New Catalog Update Catalog

+ 30%

Catalog Speed

PIM reduces time of print catalog production

and catalog updates for 30%

+ 63%

International Growth

PIM users sell to 46 countries

Average does address 17 countries.

So

urc

e: L

NC

PIM

20

11

& H

eile

r P

IM R

OI

Su

rve

y 2

01

1

Enterprise PIM makes you #1

PIM

PIM

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Publishing: Cross Selling Effects in Multichannel Strategies

PIM_CL_BV_Print

Source: E-Commerce Competence Center 2010

Online-Shop Store

s

Catalog 15.2 % of store revenues are

influenced by catalogs

29.1 % of online revenues are

influenced by catalogs

Manufacturing

Publishing

leads to

online & stores

revenues

Distribution B2B

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Multichannel Pain Points without a PIM


» You cannot feel it

» You cannot touch it

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Multichannel Pain Points without a PIM


» You are alone in the dark with no advice

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How PIM Helps


» Good product search

» Detailed product descriptions

» Comparisons

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Overall Business Needs


Organization & Extended Organization

Business Challenge

Single-perspective View of Data

Business Solution

Multi-perspective View of Data

XML

Excel

XML

CSV

JPG

PNG

GIF

PDF

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Multichannel Commerce Needs Perfect Product Data


Manufacturer

Distributor

IDW

» Today most manufacturers have multiple

sales channels and need to have perfect

product data for all of their products.

» Distributors are receiving product data from

100’s of manufacturers, data pools, etc.

They need perfect product data to publish

this information to all of their sales

channels.

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Manufacturers are Selling Direct


Manufacturer Distributor

» With the increase in internet revenues,

manufacturers have the opportunity to

sell direct.

» They can build relationships and sell

products online to customers.

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Static PIM Suite Overview


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Heiler PIM Suite - Product Content Management for large Enterprise Customer

Forrester PIM Heiler

SY

NC

D

AM

CA

T

PU

BL

Adoption PIM Channel

EC

M

HS

X

Q CATALOG

S

ENTER XML

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Enterprise Product Information Management

PLM

Creation

Enrichment

Synchronize

Consolidate

Integration

Mapping

Classification

Governance

Analysis

Stewardship

Workflow

Approval

Quality

Localization

Translation

Exchange

Presentation

Information

Publishing

Data

Onboarding Master Data

Management Digital Asset

Management Commerce

Stores

Live

Catalogs Channel

Management

Supplier Application Media eCommerce Social Multichannel eProcurement

Design

Art Buying

Photography

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Reference: Fastenal

Forrester PIM Heiler

“We deal in MRO, but our customers primarily expect

detailed product descriptions and technical details. As a

result, we are increasingly developing into an information

broker. This means that we deal in product information.” Bruce Loken

Product Data Management Director

Challenges Solution Benefits

» Improve data quality, accuracy, speed of

600K components for e-commerce and

maintain 11Million SKUs in one database

» Redundant /duplicated product data

» 9 Disparate databases

» Heiler Product Manager

» Heiler Media Manager

» Increased online profitability by 15%

» 80% reduction in cost and time with catalog

generation while increasing catalog SKU

count by 30K products

» Data consistent, up-to-date, accurate across

enterprise and sales/marketing channels

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Key Messages

» We are MDM for Product Data

End-to-End Product Information Supply Chain

High Volumes & Strong Performance

Multi Supplier

Mass Data

Multi Channel Commerce

Out of the Box support of major E-Commerce and E-Procurment Solutions

» We generate Business Values

Perfect and easy management of convergent channels

More revenues and higher conversion rates in the channels

Better margins and enabling long tail strategies for retailer

Early revenues through faster time-to-market and cost efficient supplier on-boarding

Strengthen the market shares with integrated procurement channels of large enterprise customers

Cost efficient data management for electronic and print publishing channels

» Global Growth Strategy and Organization

Gartner PIM Heiler

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Heiler Software Group

» Founded: 1987

Public 2000 Frankfurt Stock Exchange

Offices in Europe, USA, Canada, Australia

» 2011 Revenue: €16 Mio. est.

Equity Quote: 82% - €16 Mio. cash - no debts

EBIT positive: € 0,582 Mio. YTD

» Growth Rate: 48% YTD

» Partners: 40+

Major System Integrators, Consulting Firms

Major E-Commerce Vendors: IBM, ATG, SAP,

Microsoft, Intershop, Demandware

» Customers: 300+

100% Enterprise (Focus on Retail, Distribution)

80% Marketleaders with strategic PIM approach

15 Countries

Highest Customer Loyalty

FASTEST GROWING STANDARD SOFTWARE VENDOR FOR

PRODUCT INFORMATION MANAGEMENT (PIM)

0 2 4 6 8 10

Growth Rate Revenues FY 2010/11 – 48% YTD

0 1 2

Growth Rate Licenses FY 2010/11 – 128% YTD

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Global Growth

Gartner PIM

» Global Presence

Detroit

Chicago

Toronto

Stuttgart

Karlsruhe

London

Sydney

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Questions

Thank You!

» Learn more about Heiler

www.heiler.com

www.tv.heiler.com

www.pim-roi.com

» Connect with Heiler

Facebook

Twitter

LinkedIn

YouTube

Questions?


http://www.heiler.com/

http://www.tv.heiler.com/

http://www.pim-roi.com/



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