In today’s hyper-connected world, seamless access to accurate product information is essential for winning and retaining customers. Yet, many retailers and brands continue to grapple with the consequences of segregated data—information that exists in silos, disconnected from the systems that need it most. This disconnect can have devastating effects on sales and customer satisfaction, as illustrated by two all-too-common scenarios.

Lost Sales Due to Missing Information

Imagine a potential customer who stumbles upon your branded t-shirt in a trendy Instagram post. Intrigued, they decide to learn more and want to confirm that the shirt is made of 100% cotton. They search for your brand on Google or ask ChatGPT, find your online store, and locate the product. But, to their dismay, the material information is nowhere to be found. Frustrated and unsure, they close the site and move on—another lost sale due to isolated data.

In a brick-and-mortar setting, the issue is just as damaging. Picture a customer in your local store, eager to buy a pair of shoes, only to discover their size is out of stock. They ask the store assistant if it’s available in a nearby location, but the assistant can’t access this information due to disconnected systems. The customer leaves empty-handed, and another opportunity slips through the cracks.

The Staggering Cost of Bad Data

These scenarios are not isolated incidents. In fact, they represent a widespread problem that is costing the U.S. economy a staggering $3.1 trillion per year, according to IBM. For the e-commerce sector, a significant chunk of this loss is due to bad or inaccessible data, which directly translates into missed sales opportunities.

The problem is so obvious, so why aren’t more retailers and brands taking action to solve it?

Why Retailers Struggle to Solve the Problem

The answer often lies in the complexity of data management. Many retailers operate across multiple channels—online stores, physical locations, social media platforms, and third-party marketplaces—each with its own set of data systems. Integrating these systems to provide a unified, accurate, and accessible view of product information requires significant investment in technology and processes, something not all businesses are prepared to undertake.

Moreover, the challenge is not just technological but also organizational. Often, different departments within a company control different data sets, leading to a lack of coordination and a reluctance to share information. This fragmented approach can make it difficult to implement solutions that require cross-functional collaboration.

Moving Forward: The Need for Integrated Data Solutions

To prevent the costly impact of segregated data, retailers must prioritize data integration. Adopting a Product Information Management (PIM) system, for example, can centralize product data and ensure consistency across all channels. This not only enhances the customer experience but also boosts operational efficiency, leading to increased sales and reduced losses.

In a world where customers expect instant access to accurate information, the risks of ignoring the perils of segregated data are too great to ignore. Retailers and brands must take decisive action to unify their data, or they risk falling behind in a competitive market where every sale counts.