A PIM system can offer a great return on investment (ROI) if it is used effectively. The goal of this guide is to help you calculate the ROI (ROI is closely related to measures like return on assets (ROA) and return on equity (ROE)). of your PIM system so that you can be sure it is providing value for your business. We’ll discuss how to determine the cost of a PIM system and how to measure its impact on your business. By following these tips, you can be confident that your PIM system is benefiting your bottom line.
PIM system is the best answer for dealing with the product range. However, what precisely does it bring? Below is a guideline for determining ROI (Return Of Investment) of a PIM system.
For a maker or distributor, the “product information pressure” increments pointedly. All things considered, broad and right product information is getting progressively significant. Clients need a ton of point-by-point data. What’s more, for global deals, product information should likewise be accessible in various languages.
A straightforward calculation shows that keeping up 10,000 items with 10 attributes in 1 language can rapidly increase if the number of qualities and languages is extended. Those 10,000 items x 10 characteristics x 1 language = 100,000 things with 3 languages and 30 characteristics for every product suddenly become 900,000 items. Nine times as much!
So as to keep up this data, a decent PIM system is imperative – if just to have the option to work proficiently and to keep a diagram. In any case, what if we look at the cost-benefit? So as to compute the advantages of a PIM, the revenues must be compared with the costs. The revenues consist of savings in time and costs and the extra turnover that can be generated.
Value in PIM
Product Information Management systems offer many benefits and thus value through these benefits. Consider what happens if your product data is incorrect for any reason. Maybe you have a frustrated customer who wants to return the product. Maybe they will complain to a friend who is no longer buying from your business, which means that you’ve lost that earning potential too. Inaccurate data may result in a fine for failing to comply with legal requirements or for failing to meet a service standard. Having accurate data through a PIM will save you all that expense.
A PIM system also saves your team a lot of time when entering data manually. If your business: a) needs to move every product feature and piece of information from every source so that it connects to the product; b) that has to forward information to the different channels that need the data, this leads to c) wasted time and wasted opportunities. Think of everything you and your staff could do with that time if a PIM system processed data for you!
Another important area of return for a PIM is the potential to grow your sales and better reach customers. Strong, accurate product data makes it easier to target customers with specific products, retain repeat customers, and deploy new distribution channels. This can give your business the opportunity to make more sales and build your network.
Because of the ways PIM benefits your business, such as improved data accuracy, increased productivity, or increased customer reach, it can be difficult to come up with numbers for ROI. Our PIM ROI calculator can help you come up with solid numbers behind the cost reduction, process optimization, and revenue increases associated with PIM and e-commerce.