Imagine this, a typical online shopping scenario that
customers find themselves in more often than one would like.
You're looking for a phone case for a particular brand of
phones. You visit the website hoping to find what you're
looking for, and do the most instinctive thing. Navigate.
Phones -> Your phone brand -> Accessories. But you don't
find any covers here. Your first assumption would be that the
website doesn't have phone covers of your particular phone
brand.
However, patience prevails and you decide to try your luck
with a search query. You scroll through the first couple of
pages and finally find the cover for your phone brand. While
the eventual outcome may seem favorable, this is not what
particularly qualifies as a satisfactory buying journey. In
fact, present- day shoppers have far less patience, so if they
don't find what they're looking for at the first attempt, they
move on.
And this is what brings us to our two-part series cracking
product findability. There are two primary approaches to
finding a product:
1. Browse
2. Search
And more often than not, shoppers use a hybrid of these
approaches. Part 1 of our journey to ensuring that customers
find your products easily will deal primarily with the
'browse' approach (which, in phases, can also drive the
'search' approach). And this is what brings us to the subject
of this part - product taxonomy.
What is Product Taxonomy?
A taxonomy is a structured and indexed framework that is used
to categorize products in a manner that is intuitive and easy
to use. As customers move down categories, they find more
specific products; and as they go up, they find broader, more
generic areas. In other words, taxonomy is the process of
categorizing, organizing, grouping, and most critically,
understanding why the process is being carried out.
It's not just about throwing products together under different
categories and calling it a day. Sound taxonomy requires a
hybrid approach that demands a strong understanding of both,
your products and your customers. Here's an example: Your
product range might include shirts for boys and girls. The
logical way to categorize products would be this:
- Apparel -> Boys -> Clothing -> Shirts
- Apparel -> Girls -> Clothing-> Shirts
While this may seem simple, the other way to go about this
could also be:
- Apparel -> Clothing -> Shirts -> Boys
- Apparel -> Clothing-> Shirts -> Girls
In a vacuum, both these options may seem reasonable and
logical, however, the key here is to understand not just your
product types, but also industry norms and customer
preferences. This is where it becomes critical to take the
right call. Then again, taxonomy doesn't just affect the
'browsers'; it impacts 'searchers' as well. As searchers land
on your website, they might directly go to the search bar and
look for 'boy's shirts'. This is where your categorizing and
naming convention, both crucial elements of taxonomy, can be
just as important.
Product Taxonomy Best Practices
-
Leverage customer data
The way customers shop online is always evolving based on
trends, technology and other factors. The best way to
understand these online shopping behavioral trends is to
test every aspect of your product hierarchies and
categories. Look for metrics such as time spent on pages,
conversion rates, links clicked, bounce rates etc. to get a
better understanding of how your taxonomy is affecting the
shopping experience. You can do this, by A/B testing or even
surveys if you have a wide enough group of responders.
-
Know your products
Easier said than done! While customer-centricity is vital to
success in digital commerce, an in- depth understanding of
your products is equally critical. You must know what
attributes of your product drive behavior and how to make
the most of them. Towards this, you need to have a few of
these questions answered:
- What differentiates my product in the market?
- What do customers like about my product?
-
What are the industry norms/expectations for similar
products in terms of taxonomy?
Answer these key questions and you will enable a
product-centric approach, and also develop the ability to
optimize product datasets
for the desired business outcomes.
-
Optimize for SEO
Product taxonomies can also play a vital role in search. And
this applies not only to internal site search but search
engine performance as well. Leveraging this potential,
however, requires you to optimize your taxonomy with search
engine optimization (SEO) in mind. This would include the
inclusion of elements such as meta content (titles and
descriptions), images, and keyword use.
Extensive research and effort on keyword use is appreciated
by search engines, but also make sure you don't overdo it.
The key here is to optimize taxonomy and URLs in a way that
makes product discovery easier for your customers; nothing
more, nothing less.
-
Frugal and Smart Categorization
If you think your current taxonomy requires your customer to
spend more time on navigation than on the actual product,
chances are you’ve overcategorized. Adding too many
subcategories and levels happens when one tries to get too
specific with categorizing the product. And this is ideally
not what taxonomy should be about. The ideal depth of your
hierarchy should not exceed two to three categories, and the
reason for this is the simple formula:
Lesser clicks to find a product = lower bounce rate
A good way to ensure this is to differentiate attributes vs.
sub-categories. For example, if your parent category is
'Men's Apparel', and the sub category is 'Men's Shirts',
you're fine. However, if you have another subcategory for
'Long Sleeve Shirts', you've made the mistake of taking an
attribute and converting it into a subcategory.
-
Categorize to Reduce Confusion
As customers navigate through your site, the process should
be intuitive and linear. This means that there should be a
clear and unified path for customers to get to the desired
product. The key to doing this is to reduce duplicate
categories, homogenize nomenclature and avoid categorizing
the same product under more than one sub-category. There
will, of course, be exceptions to these rules. However, more
often than not, these factors are common amongst most
successful taxonomies.
Again, naming your categories correctly is just as important
as zeroing down on the right hierarchy and relationships.
The most basic rule to follow is to use nomenclature that
you know your customer is most likely to use. An easy way to
identify this is to know your customer, but you would also
want to keep an eye on industry norms and best practices to
get your nomenclature right. For example, if you're products
are for a B2B audience, you would want specific, even
technical nomenclature that industry customers would
understand. On the other hand, with B2C customers, you would
want to do away with all jargon and use the most commonly
used terms. 'Horses for courses' is the key here.
-
Following the ‘don’ts’ of Taxonomy and Categorization
Equally important is to avoid a few critical missteps that
can render product taxonomies a mess. Here are the common
ones to avoid:
-
Avoid using the ‘other’ category, because that’s usually
not what customers are looking for. While we did mention
avoiding overcategorization, in this case, it just makes
more sense to create a relevant subcategory for
products. Then again, if you think you have too many
one-off products that don’t necessarily require
dedicated subcategories, you probably want to rethink
the place of the product in your catalog in the first
place.
-
As far as possible, try avoiding categorizing products
to more than one node. Placing products in multiple
categories doesn’t just hamper the customer experience,
it also messes up stock management, product reporting
and purchase orders.
-
Similarly, you must also avoid duplication and
overlapping of categories. Too many choices lead to
further confusion, so you would want to make sure you
keep things down to a minimum. And this is possible if
you categorize correctly. So, instead of having a
taxonomy that looks like this:
It makes more sense to have one that looks like this:
How PIM Drives Product Taxonomy
While getting the logic right to design product taxonomy is
critical, you must also find the right tools to execute this
logic. And when it comes to categorizing millions of products,
the challenge becomes even more daunting. This is where an
advanced tool for
product information management (PIM)
can do the magic. These are some key benefits to finding the
right PIM to master taxonomy:
-
Data Governance:
With the right PIM tool, you get the benefit of setting data
governance rules to make sure your data quality and
integrity is always intact. With no need to manually check
various data touchpoints, you can easily set a clear and
objective chain of command.
-
Quality Metrics:
Automated audits of your product data make sure that your
taxonomy is always in keeping with data standards. With a
good PIM, you get the advantage of data quality tracking
without going through the trouble of manual intervention.
-
Automation and AI:
Automated taxonomy design and categorization sounds like a
thing of the future, but it’s already here. You can get
predesigned taxonomy templates to build catalogs on, and
make changes to suit the template to your specific
requirements. Similarly, you can bulk categorize millions of
products automatically and get your products out to your
customers faster than ever before.
Amaze PXM: Designed to Drive Future-Ready Taxonomy Building &
Categorization
As a next-gen PIM solution, Amaze PXM gives you complete
control over the process of taxonomy building and
categorization. Amaze has all the features you need to ensure
robust governance and high data integrity. In addition to
this, it offers futuristic AI-driven recommendations for
taxonomy building that make the job a whole lot easier. Not
only does it eliminate the need to reinvent the wheel, it also
directly accelerates time-to-market with automated
categorization for countless products.
Looking to build the taxonomy for your business’ ascent? Try
Amaze:
Schedule a demo today