Why does Product Information Management (PIM) matter today?

The shift from selling products in physical stores with the help of a personal sales assistant to selling products online has made digitalization and optimization of product information a must for all participants in supply chains.
Written by Dynamicweb on 07.04.2019, 08:00
Why does Product Information Management (PIM) matter today?

โœ”๏ธ To manage rich product information independently for the digitalized world, i.e. for the eye of your Customer. 

With comprehensive product information, your customer

๐Ÿ‘‰ able to search and navigate quickly to the product in mind within the web-shop 
๐Ÿ‘‰ able to choose the right product for the intended purpose of use 
๐Ÿ‘‰ will like to compare relevant products from different brands using the same metrics. 

โœ”๏ธ Not to burden your ERP system by having Change Request to include product information meant for the digitalized world that not required by your company internal operation.
โœ”๏ธ Ability to comply with the marketplace’s partner that you plan to work with.  
โœ”๏ธ Making true personalization happen

35% of Amazon’s revenue is due to product recommendation (Data source: McKinsey). You can present product recommendations based on your buying behaviour and its possible with a PIM system. 

How a PIM system can help with Personalization?

Personalization of product offers require specific product attributes. Knowing about your customer, what he/she wants, and their buying behaviour is one side of the personalization. The other side is being able to match these data with relevant products. For this quest, you need to structure all the hard facts about the products in your range. A PIM system enables you to do both. By sourcing Product data through your PIM system and referencing it with your Ecommerce data on buyer behaviour you can present the visitors with relevant products. 

By doing that you will be able to do more than merely presenting the products your visitor already have looked and in best case what others also looked at. By having access to structured product information, you can suggest and present products that have the same features and fulfil the same purposes. 

โœ”๏ธUtilizing product relationships

Increased online sales must encompass product relationships. The good old salesman always made sure the customer left the shop with the best option for the product in mind - and the additional products needed to fulfil the intended purpose of use. 

webshop must work in the same way and will optimally do this job even better based on the huge amount of digitalized product information available.

โœ”๏ธ Automating the handling of product data

To have a comprehensive product information cannot be done properly and in a cost-effective way without being supported by the right technology. A PIM system automates the flow of data from purchases and ensures having one truth for your products throughout your corporation. You can even integrate it directly to your ERP system. 

โœ”๏ธ ROI?  Cost Dection?

A recent business case made by a Dynamicweb PIM customer showed that the cost of handling product data using manual oriented work processes were 54,000 EUR, while by using the PIM solution the costs of handling the same data were only 15,000 EUR. This means a cost reduction by 39,000 EUR or put in another way, down to under 30 % of the costs of doing it without the proper technology. 

Some facts about the cost study:

โœ”๏ธ The amount of data encompassed 10,000 SKUs having on average 70 attributes each
โœ”๏ธ The attributes were to be populated in 3 languages 
โœ”๏ธ 33 % of the data were to be refreshed within a year 

The main cost reductions were achieved by: 

โœ”๏ธ Reducing workload from 693,000 to 429,000 attributes yearly
โœ”๏ธ Doubling the speed of putting through the required workload 
โœ”๏ธ Dramatic reduction of time spent on digital assets 
โœ”๏ธ The cost reduction paid well for the software license costs – in this case 6,000 EUR per year 

Calculate your PIM ROI ๐Ÿ“Š

Are you considering PIM system but unsure of the business case? Try our PIM RoI calculator and see your potential yearly saving by using a PIM system for your ecommerce solution.