When developing a PXM (Product Experience Management) strategy, it is essential to implement competitive intelligence.
Through this watch process, businesses can follow the strategies of their competitors, distributors and sales network and use this information to improve the product experience for shoppers.
Discover the definition of PXM and how competitive intelligence helps businesses to manage the process better.
PXM: Definition
On an eCommerce site, the fact that it's not possible to touch and/or smell a product can be frustrating for shoppers with 50% of them1 saying that this is why they don't shop on line.
To avoid this frustration, businesses need to master PXM which involves providing shoppers with the best possible product experience to persuade them to buy.
Several actions can be implemented to develop this approach: optimize the quality of product information, eliminate any existing inconsistencies between each selling channel, improve customization… Businesses that have developed PXM have up to 40% less product returns3 and can multiply their conversion rate by 43.
PXM: the Benefits of Competitive Intelligence
1. Improve the quality of product information
Competitive intelligence enables you to improve the quality of the information presented to your customers.
Through this watch effort, businesses can compare the quality of their product information with that of their competitors: precision of technical features, length of marketing descriptions, detail of sales pitches… and quickly detect information requiring improvement and/or enrichment.
This comparison is essential to meet shopper expectations as 82% of them4 want to access highly detailed information on the characteristics of any product they're researching.
2. Detect New Trends
Competitive intelligence enables you to provide shoppers with a product experience that is positive, modern, and in line with current trends.
Businesses can stay up to date on the latest trends and better identify what works with shoppers: photos of brand ambassadors5, customer reviews, unboxing videos… to gain inspiration and create effective and compelling product pages.
This surveillance is important to persuade shoppers as 86% of them6 are willing to pay more to get a great online experience and 74%7 rely solely on the quality of this experience when deciding whether or not to buy.
3. Eliminate Inconsistencies
Competitive intelligence helps you to provide shoppers with a consistent shopping experience across the entire distribution network.
It allows a business to control the information communicated by the selling network and distributors and to identify any errors and/or inconsistencies: missing logo, incomplete product description, incorrect technical features… The business can then quickly correct information and avoid any negative impacts on their brand image: loss of confidence, cart abandons, dissatisfaction…
This verification process is essential and allows a business to maintain the consistency of product information across all distribution channels and can lead to a 23% increase in revenue8.
4. Optimize Prices
Competitive intelligence allows you to set the right price to attract shoppers and to persuade them to buy your products.
A business can quickly identify the price strategy defined by their competitors (selection, penetration, alignment…), monitor changes in their prices over time (increase, decrease, stagnation…) and take this information into consideration to determine competitive and attractive prices on the market.
It is essential to set the right price to attract shoppers with 60% of them9 considering price to be the top criterion influencing their decision to buy and 90%9 spending time searching for the best deals on line.
5. Improve Customization
Competitive intelligence lets you provide shoppers with a product that meets their expectations.
It gives the business access to customer reviews from competitor websites which means they can take them into consideration to adapt their own product pages to meet customer preferences: payment methods, delivery options, product offer…
It is essential to take these reviews into account to satisfy shoppers with 73% of shoppers10 saying that they expect brands to integrate their specific needs and expectations.
The challenges of implementing competitive intelligence
We've established that competitive intelligence is essential to your PXM strategy.
However, to implement it you must connect regularly to the websites of your competitors, their sales network, and their distributors, gather strategic data (prices, stocks, quality of product information…) and monitor changes over time.
When you have too many things to watch over (multiplication of selling channels, ever increasing volumes of product data, constant price variations…) and you are not equipped with the right tools, this task becomes impossible.
Therefore, it is crucial to use an effective competitive watch solution providing incomparable improvement in your efficiency: optimum monitoring of competitors, control over the distribution network, global view of the market… which are essential for managing and optimizing PXM.
1
Danziger, P. N. (2019, August 4). Retailers Need To Engage Shoppers' Five Senses To Save Physical Retail. Forbes.
2
Denisov, P. (2021, December 7). Recrutement, PXM, Cybersécurité : les challenges du big data en 2022.
3
Pestanes, P. (2020, April 30). Baromètre des nouvelles tendances de consommation 2020. wavestone.com
4
Sansonetti, J. Photo 360° e-commerce : Présentez vos produits sous tous les angles ! wizishop.fr.
5
Stattin, N. (2022, November 15). Key Customer Experience Statistics to Know. superoffice.com.
6
Aussant, P. (2021, June 1). 40 statistiques d'expérience client à connaître en 2021. Emplifi | Customer Experience & Social Media Marketing.
7
V, Ivana. (2022, February 4). 50+ Eye-Opening Branding Statistics - 2022 Edition. SmallBizGenius.
8
Prisync. (2017, November 1). Pricing Facts : Data From Consumers [Infographic Included].
9
Salesforce. (2022, May 10). Salesforce Report : Nearly 90 % Of Buyers Say Experience a Company Provides Matters as Much as Products or Services. Salesforce News.
