PIM helps businesses to manage and create rich product data. The more informative the data is, the more confident a customer will feel about their buying decision. And as a result, this will lead to an increase in online sales (and a reduction in returns).
Customers are starting to do more research and shop around online before making a purchase. There’s the expectation of getting all the information they need around a product easily. At the same time, consumers want to have a consistent and enjoyable shopping experience. Accurate product data is key to creating this kind of experience. And it’s for this reason that there’s a product information management (PIM) business case.
PIM Selection Criteria
But even if you know you need a PIM, how do you select it? We’ve identified 3 key selection criteria to determine which PIM is the best for your organization (and it’s future ambitions):
Factor 1: Requirements
First of all, you need to understand the requirements of the different stakeholders. Marketing, IT, e-Commerce: they all have different requirements for the Product Information Management process. The selection of a new PIM tool should take all the requirements from different stakeholders into account to make sure the adoption (and effectiveness) of a new PIM is 100%.
Factor 2: IT Architecture
The selected PIM should fit in your existing IT architecture and be connected to all existing systems (and output channels). Selecting a new PIM should take the existing IT architecture into account and/or make room for future IT changes.
We also see that PIM is often a driver for architectural changes (and driving the selection and implementation of other IT tools), so don’t pin yourself down on any existing tool in your architecture. Even if your ERP is crucial to your current organization, it might need to upgrade to allow two “best of breed” systems for ERP and PIM to serve your company and enable future growth.
Factor 3: Budget
Though it is not fully justified, PIM is seen as a “necessary cost”. That is unfortunate, as it makes the organization more efficient, (in)directly increases sales and reduces returns. Still, the PIM you select needs to fit your budget.
We have developed a custom PIM Costs tool to help you budget the costs of your PIM project. It includes the selection, design, implementation and license of a PIM tool that fits the ambitions of your organization.
The Business Benefits Of A Modern PIM Solution
A well-designed PIM system can transform the way a company does business. It can be far more than a tool to present products to customers. PIM can also be the catalyst for change within a company. Many organizations have become more aware of the benefits of PIM.
We therefore have created an extensive (but not exhaustive) list of PIM benefits:
- Increased turnover – Help consumers find the products they’re looking for. This lets them buy directly and via distributor networks. Improve your up-sell and cross-sell opportunities. Produce targeted and larger product catalogs quickly.
- An expanded product range – Streamline how you take on product lines. Then you can introduce more niche products at a lower cost.
- Reduced costs – Free up your product managers to spend time where it matters. Do this with PIM’s automation capabilities. Improve the quality of your data. Get distributors on your side as part of a quality supply chain. Potentially work to lower margins and support distribution partners.
- Extension of the supply chain – PIM has low setup costs and easy functionality. This means distribution partners can seamlessly be added to routes to market.
- Shorter time to market – Rapidly take on new suppliers and products. Increase speed to market. You can also benefit from working with cost-effective suppliers and products.
- A uniform customer experience – Ensure a personalized and consistent customer experience. Project a strong brand image and deliver up to date product data across all channels.
- An engaging customer journey – Utilise product visualization tools to increase engagement. Manage digital assets and combine them with your product data.
- Controlled content distribution – Get greater control over which external parties receive product information. Provide varied product data through different sales channels.
- Managed complexity – Manage an increased range of complex product data. This includes digital assets such as photos or videos. According to Forbes, 90% of customers feel product videos help them to make a buying decision.
- Conversion optimization through complete product information.
- Better collaborations between internal and external stakeholders.
- It is easy to identify which product information is missing.
- Less returned products.
- Centralized product information.
- A software-as-a-service (SaaS) solution.
- Flexible: being able to support and adopt different types of data.
- Easy to connect with your ERP, CMS, or eCommerce platform.
Want to learn more about PIM?
If you have any questions regarding Product Information Management, from PIM Selection to Implementation or how a PIM would fit in your IT landscape? Feel free to browse our Knowledge Base of articles on everything PIM related.Visit our Knowledge Base