An effective Product Information Management (PIM) system is very important for the management of product information within a business by giving a single source for the overall data which can be organized, exported, and edited.
Business people worldwide are happy to use the PIM system and make certain improvements in their business development activities. They are aware of the role of this system to get the desired success rate in the competitive business sector within a short period.
What is Product Information Management (PIM)?
Product Information Management (PIM) is the method of managing the product master data related to information like labels and descriptions and digital assets like videos and pictures needed for successful multichannel selling.
A PIM is relevant to business-to-consumer and business-to-business companies worldwide with a specialization in marketing and selling products via a spectrum of channels like marketplaces, eCommerce websites, print catalogs, social media platforms, and distribution partners.
A good PIM system helps the business in different ways like product launches, campaign management, regulatory compliance, and data syndication. The two methods to build a business case and justify the reason to invest in PIM are a demonstration of the digital transformation return on investment with PIM and an assessment of PIM business value.
To get better insights about PIM, don’t miss to visit What is PIM? – An Ultimate Guide for Product Information Management.
Why Do Businesses Need a Product Information Management (PIM) System?
A successful Product Information Management system is very important for the management of product information within a company. It provides a single source for the entire data to be organized, edited and exported. It enhances the method the business runs. The following details explain why your business needs a PIM system.
1. A better organization of product data
Complex data organization for thousands of products is one of the most common problems for both manufacturing and retail companies.
A fully integrated product information management system stores the needed information of each product in one place with the category menu and search function to find any data on time. This system helps employees to save time and organize data better than before.
2. The ability to restrict access to information
Access to the product data may have to be closely controlled in small-to-medium-sized businesses. If the product data can be accessible during its development stage, then such data can be easily transferred to competitors and then end in loss to the business.
A good PIM system lets its users restrict access to product information and implement so many security features such as admin-only access to make certain sensitive information is not widely available. A robust permission system is very important for large and multinational businesses with any complex product line.
3. Increased customer satisfaction
Many people consider the customer experience as an important thing while deciding whether to choose a business or not. A well-integrated PIM system can enhance customer satisfaction in multiple ways. Business people who use the first-class PIM system ensure that they have one source of truth for the overall product information and their customers never get out-of-date information regarding any product.
4. Compatible with the biggest eCommerce platforms
Having information-rich, easy-to-navigate, and clean product pages across different marketplaces is an expectation of almost every owner of the eCommerce business to enhance the customer experience. You can prefer and use a PIM system to store the overall data and export data to SquareSpace, Amazon, Shopify, and other businesses. You can provide all the information required by potential buyers of your products.
Listing a product on platforms such as Amazon is time-consuming. You can use the PIM system in which product descriptions, titles, identifiers, and other information are stored and useful to add an item onto Amazon almost immediately.
5. Reduces employees’ stress
Successful and smart business people have a stress-free and motivated workforce. Everyone in the business can make use of the PIM and make a good decision on time. There is no need to finish via so many spreadsheets to find the unique identifying number of the product or ask the marketing team whether they have the up-to-date product information.
A fully integrated PIM system improves the company’s efficiency and increases the level of customer satisfaction. You can focus on the important features and remarkable benefits of this system. You will make a good decision to use it and be encouraged to develop your business further.
Read Product Information Management (PIM) System: What is it? Why PIM Solution Is Important for Business? to understand the essence of PIM for your business.
Business Benefits of a Modern Product Information Management (PIM) System
There are several business benefits of an advanced product information management system. However, the most important benefits are as follows.
- Increased turnover
- An expanded product range
- Reduced costs
- Extension of supply chain
- Short time to market
- A uniform customer experience
- An engaging customer journey
- Controlled content distribution
- Managed complexity
A good PIM transforms the method a company does business. It not only presents the product to customers but also be the catalyst to any change within a company. You must be aware of the business benefits of the PIM and the importance of making a business case PIM.
To learn more about PIM benefits, you can read What Are the Benefits of PIM (Product Information Management) Systems?
Building the Business Case for Product Information Management (PIM)
Customers enhance their way to research and shop around online for successful purchases. They wish to get all the product information easily and make a good decision. They are eager to have an enjoyable and consistent shopping experience. A product information management business case is created to fulfill such things.
A good PIM helps every business to make rich product data. The product data gives confidence for potential customers to buy the product. This approach increases the leads and sales within a short time. You can use the professional guidelines and customized services for building an effective business case PIM.
Ways to Creating a Product Information Management Business Case
Almost every organization across industries plans to increase its efforts and reap benefits from the digital transformation. This is because digital channels are more important than ever to business growth, resiliency, and profitability. The following details explain to you how to create a product information management business case.
1. Personalizing the online customer experience
The majority of the digital transformations include customer-centric initiatives but are not limited to customization, digital marketing, and enhancing the customer experience as their business goals. A PIM helps a lot to customize descriptions, product suggestions, and interactive media as per the customer profiles, location, channel activity, and other individual-specific attributes.
2. Bringing speed and agility to digital commerce
The speed of digital transformation in recent years has increased. A good improvement in the level of online purchasing, direct-to-customer initiatives, and changing consumer brand preferences, and other favorable things encourages business people to use the PIM system.
The best PIM system enhances eCommerce via very good assortment planning to get the right combination of products into various channels. It brings speed as well as agility to digital commerce.
3. Improving supply chain visibility and proactively mitigating risk
The overall transparency of the supply chain is very important for business people to make an informed decision. The main topics under discussion among business people worldwide in recent times are supply chain transparency, resiliency, risks, and balancing costs.
A PIM lets accurate risk assessment and remediation planning through the improvement of visibility into materials needed to manufacture products, suppliers provide such materials in different regions, the volume being bought via suppliers across divisions and plants, and other things.
A PIM automates the data collection, classification, cleansing, harmonization, and distribution to several downstream systems like inventory management, financial, marketing, and warehousing systems. The consistent information across the business supports a good improvement in the accuracy and speed of activities like production planning, financial reporting, and demand forecasting.
4. Revenue management
A PIM can help to acquire net new customers, retain profitable customers, and grow the wallet share of existing and happy customers. A PIM business case’s details are specific to the business.
5. Cost management
A PIM system reduces the expenses in so many areas like customer service & support, customer acquisition, procurement, inventory, and shipping. The overall value chances for cost management can be expressed in the efficiency gains.
Users of the PIM reduce the expenses related to data management and analytics. An outstanding PIM system delivers value across a wide range of industries, not only for companies in the wholesale and retail value chains.
6. Risk management
A PIM system reduces different types of risks like supply chain disruption, customer churn, and regulatory compliance. You can take your own time and concentrate on how to successfully build a good PIM business case right now. You will get complete guidance and be encouraged to use the PIM system.
Dos and Don’ts of Building a Successful Product Information Management (PIM) Business Case
The overall success of a company’s project depends on the business cases developed during the early stages of a project to outline who, how, and what are necessary for finding whether the plan is a valuable undertaking in the first place.
Business cases are different from project proposals. This is because the project proposal is focusing on why a company requires a particular project. The project sponsor and key stakeholders review the business cases before being accepted, canceled, rejected, deferred, or revised.
The main things to be addressed in a business case are the goal of the company in pursuing the project, potential challenges which prevent the company from attaining the goal, things to be done to overcome potential challenges, whether the company is well-equipped to deal with potential challenges.
1. Create a good PIM case
The best business case communicates the entire benefits as well as the potential of the proposed project. You must be clear on what and how a case for a product information management system can benefit your company. The following details explain some do’s and don’ts while making a good PIM business case.
2. Do talk about trends
PIM is usually related to the retail business. However, there are so many needs to have PIM in the manufacturing industry. Industry experts are willing to use the first-class PIM in the manufacturing business and succeed in it. The Internet of Things directly affects how popular manufacturing brands communicate with customers.
Advanced eCommerce fulfillment centers and the digitization of the distribution influence the manufacturers to shift from one warehouse model to another direct-to-consumer model. An outstanding PIM is vital to manage such a process efficiently and communicate consumer-facing information.
3. Do talk about numbers
Business cases do not project proposals. They highlight the potential gains for implementing the product information management solution. You can get a PIM and have a central repository of product information which supports a lot of speed time-to-market.
You can save time and manage the product information from several sources as well as systems. This system reduces the time companies take to produce new and updated product information. This system ensures consistent, complete, accurate, and up-to-date information across several touchpoints.
4. Do talk about the difference
Focus on the customer experience trend as it is very helpful to succeed in the competitive business sector. Many users of the Internet expect hyper-personalized experiences across various channels. These consumers become accustomed to brands and reach out to them in so many choices like the product suggestions based on previous purchases. An excellent PIM solution is cleansing and transforming data, and offering customized and contextual customer experience capabilities.
5. Don’t make the audience feel you are only after their money
Present the business case and be mindful of the goals of the business. Many people expect a complete customer-centric approach. For example, stakeholders like to prefer companies providing solutions appropriate for customers not just because of money.
6. Don’t leave out the details
A PIM business case must emphasize details like the specific PIM’s features, the implementation time, and the product information processes required to be reassessed.
Every user of the best-in-class nature of the product information management business case can get a good improvement in their business sector as expected. Regular and excellent updates of facilities related to the PIM give you different benefits and encourage you to choose and use the effective PIM business case.
Proper use of the PIM business case is very important to get the desired benefits regularly. You must remember it and make a good decision to develop the business further.