Before you get social, get your product data in shape

Businesses are wising up to the benefits of establishing Facebook groups, posting video content on YouTube, and courting bloggers. The instantaneous nature of social media means messages reach a vast amount of consumers within seconds. By marketing through these channels, you can significantly increase your online sales.

But although social media can be a boon to business, you should be aware of the dangers of providing so much product information over so many channels. If keeping data consistent among your catalogue, online, and bricks-and-mortar channels causes problems, how do you even begin to deal with Facebook, Twitter, and YouTube as well?

An example of a company that’s getting social media sales right is computer brand Dell, which made more than $3 million in sales via Twitter alone. Consumers follow the brand and actively look for its latest tweets on new promotions. This targets a different demographic than its other channels do and is a great way of conducting “passive” sales among consumers who have already expressed an interest in following the brand.

Another example of social media sales success comes from the US. Jeweller GEMaffair.com recently held a contest on Twitter, asking followers to enter by retweeting a promotional message that contained a coupon. A viral bonanza of retweets ensued. One lucky tweeter won a $100 jewellery set. GEMaffair received 18 orders that day associated with the contest that more than covered its costs.

Spreading the (bad) news
With the increase in opportunities for sales comes an increase in the complex task of keeping product data consistent across the board. There’s no point tweeting a link to a product or posting it to a fan group on Facebook if that same product is available at a lower price in store or via a catalogue.

As well as causing a product information management headache for those advertising over multiple channels, social networks also exacerbate any mistakes by spreading the news faster than ever before. According to a Nielsen report, 23 percent of mobile web users in the UK visit social networks through their handset, so people can update anywhere, anytime, which doesn’t bode well for bad customer experiences. If a negative story leaks via social media, people don’t have to be sitting in front of their computer to spread the news; they can be riding a train or emerging from a store.

BestBuy is one company that suffered from the rapid-fire dissemination of its poor management of product information. Consumer electronics retailer BestBuy mistakenly advertised a Samsung flat-screen TV for less than $10 back in August. Before the company knew it, word had spread through the online retail community via social media. But disappointed customers later discovered that BestBuy refused to honour the incorrect price. As a result, its reputation was seriously tarnished.

Avoiding the “oops”
Ensuring that product information is consistent across marketing and sales media has always been vital. Now, though, when the slightest snafu can be spread globally in minutes, if not seconds, it is especially vital. You must be extra cautious about the information you are broadcasting to the virtual world.

That’s one reason organisations are becoming far more strategic in their data management processes. Many are setting up data governance teams, led by business staff rather than those in IT, to interact with all departments. IT departments can unfortunately often lead an isolated existence, as other employees don’t fully understand their requirements. Business leaders can ease the situation by explaining how new IT investments in data management will make everyone’s lives easier, providing the bigger picture. It’s only when senior management starts to take ownership of master data issues that a genuine improvement in the field will occur.

Business leaders are recognising the importance of centralising data and following a standardised process when it comes to their data. Putting product information in one place, where all departments can easily access it, is essential. You probably always leave your house keys in the same place at home, so that you and your family know exactly where they are. The theory behind data management is no different. The process saves time and money, as it avoids costly mistakes being made as a result of inaccurate data.

Organisations also need to establish precise rules on how and where to store the data, along with guidelines on how to access the information. The supply chain, marketing, and sales departments all need to make sure their product information is accurate and easily accessible. Only then will true coherence be achieved across multiple retailing channels.

Charlie Lawhorn is senior vice president of business development at Stibo Systems, a provider of data management solutions