How Product Information Management (PIM) Decides the Success of Your Retail Business
Information about anything helps people to make a decision about it, and the decision of buyers determines the success of the retail sale of any product. Isn’t it?
The management of information on a particular product plays an important role in its ultimate fate and can be a difference between success and failure. The marketing managers felt extreme pressure on how to manage the content of a product to make the product more desirable and ultimately successful in the retail market.
The issue with the product information management is not only related to the technical and complex nature of products but also with the small goods such as FMCG or Fastly Moving Consumer Goods.
So, let’s attempt to have a deep dive and an understanding of the concept of product information management in the success of a particular product with the help of this writeup in an extended manner.
However, before rushing into the theme of the topic, here is some more information about Product Information Management.
What is product information?
Typical product information includes many components. It consists of a catalog that contains various attributes of the product. The catalogs also have audio-visuals and pictures, descriptions of the product, and many other aspects as a merchandising element of the product.
These key facts about the product enhance the sale of the product across multiple platforms, both online and offline.
The availability of these important facts maintain the credibility of the product, and it maintains the brand visibility and consistency. The elegant representation of all these elements together is known as Product Information Management (PIM).
What is Product Information Management (PIM)?
In this highly detailed world, each product available in the market carries a variety of information along with it. This information is capable of impacting the decision of a buyer whether to choose the product or not. Therefore, you should not undermine the importance of information management in any given business, as it can make or break the deal of a buyer who makes a decision after thorough research before buying a product.
When a seller has to deal with a wide range of products along with its associated data and attributes manually, things become much more difficult. In such a case, streamlined product data has an integral role in ensuring the steady demand and growing consumer base of the product.
Especially during window shopping, it is the product information that persuades a buyer to choose the product. If the presentation of product information would not be in place, there is nothing to advertise about.
Product Information Management is more than this. To get detailed insights into PIM, visit What is PIM? – An Ultimate Guide for Product Information Management.
Role of Product Information Management (PIM)
These days, the retail sector has emerged as a very dynamic industry where the 4Ps of the Product could be altered and renewed daily, and hence the time-to-market is the need of the hour. Now, this marketing is taken care of by the Product Information Management solution.
The Product Information Management system basically links between different sources and channels of the product. Here are several examples to understand the concept in a better way.
- Generally, sellers find it difficult to establish a real-time data link between the warehouse and logistics. As a result, an effective PIM connects data of warehouse or POS systems with digital channels of the third party, which may be the supplier or delivery logistics portals.
- The centralized product description helps the sellers to procure the product on the basis of its market statistics and plan it accordingly.
- PIM also takes care of customer engagement in electronic and print media.
Customer engagement and interest could be improved in the following ways:
- The capability of Analysation: – When the correct and complete product information is accessible to the buyers, they can make the right purchase decision quickly.
- Integrated and centralized system: – When the same information about a product is available across the multiple customer touchpoints, it generates credibility among the buyers in the long run.
- Strong operational capability: – The efficacy of day-to-day operations could be improved by using master data.
PIM also has viable solutions for the dynamic nature of the retail market. Effective Product Information Management creates compelling packages and creates an environment that comforts each user regardless of their technical skills.
By managing the product data efficiently, workflow management becomes faster, and product visuals are crystal clear. Such management is done by integrating description with content tools like WCM, DAM, and e-commerce, etc.
Benefits of Product Information Management
There are numerous benefits of using capable Product Information Management for your business. A few are listed below
- The product information lifecycle can be synchronized well with an effective PIM and MDM platform.
- PIM enables the buyers to have a single source of detailed information on products, which increases the reliability of the product.
- As the data across the platform and devices (i.e., website, mobile app, social media, and stores) remains the same, the level of customers’ trust increases further.
To learn more about the benefits of a PIM, check out What Are the Benefits of PIM (Product Information Management) Systems?
Challenges to Product information Management:
The informed class of the new age consumer has posed new expectations on sellers. Let’s have a look at a few of the challenges associated with Product Information Management.
- The addition of numerous products on a daily basis.
- The range of products for a seller creates more challenges, especially when the price list varies across different locations.
- The difficulty in collaborations of internal and external departments.
- Error-prone and less accurate updates about the product.
- Low-grade product branding and merchandising.
- Inefficiency in product processing often increases the cost of the product and management too.
- Unnecessary information about the product.
- Previous bad experiences of the consumer from the same or different brands.
- Shortage or excess inventory in stocks
Do you want to know about more challenges related to product information management? Don’t miss to read the post on Most Common Product Information Management Challenges.
How can Product Information Management (PIM) be effective?
As you might get a basic idea about the advantages of Product Information Management, let’s discuss more the effectiveness of PIM.
Reliance on the product
Reliable systems are required to manage the complexity of product information. You need a platform (e.g., Pimcore) that supports any kind of data management and publishing requirements as it takes care of end to end connectivity.
The effective Product Information Management capability of the platform enables a seller to maintain the flexibility and quality of the product data, which results in an enhanced ability to improve the relationship of the brand with its customers. Such platforms bring entire product data and information in one place. This allows the sellers to manage and enrich the product information at a single location.
The product data can be managed by viewing the same data from different frames, i.e., a spreadsheet view, bulk update, and so on. Hence the data could be transformed, enriched, and localized.
Enhanced efficiency by reducing the manual entries
Effective PIM saves the time of the seller or the store manager by simplifying all the manual data entry. Besides, digitalization frees up the associated human force for your firm as well.
As per the researched data, the introduction of a PIM solution in your existing workflow reduces the work of more than 17% of the staff by 2 hours. Previously, they used to enter and validate the product data manually.
Precise and consistent information
Implementation of the PIM solution reduces the labor cost by 70% from an operational perspective. The enhanced accuracy further emboldens the trust of the buyer in the product. As data compiling and organizing is the primary job of the PIM system, users need to feed the correct information only.
Improvised logistics and associated savings
The money saved in one place could be easily utilized in another. The PIM saves money by accuracy which could improvise the logistics and supply chain.
Who must use Product Information Management (PIM)?
Any store with at least 50 items and with the possibility to grow more in terms of product range and varieties must go for a reliable PIM. As the growth of business expands, the inventory addition and management of new products becomes a full-time job. Hence manual entry would never satisfy the purpose.
With Product Information Management (PIM), the size of the company remains insignificant, and everything will become super easy.
Large companies with hefty amounts of data can expect a great outcome from an efficient PIM solution. The ideal PIM for your business is the one that allows
- Selling and marketing a wide range of products.
- Working with multiple channels to sell items.
- Comprising numerous items.
- Enhancing communication among employees and channels.
How does the PIM enhance the performance of a business?
PIM reaches its ultimate capability for a business when it is utilized for not only supply chain operations but also as an asset to enhance the performance of the business.
Such benefits include expanding the markets in new locations and spaces, where the business did not have a reach in the earlier days. Getting products faster to the market helps retailers to tackle the changing market demand.
PIM also enhances sales by allowing the entire team access to documents and publish the correct, accurate, and relevant information across multiple channels. It helps in the social media campaign of a firm too.
Product information management can help every business regardless of size. It makes an impact by following parameters
PIM reduces the wastage of productive time on unnecessary file shifting. PIM allows the user to access the information quickly. This minimizes the proximity to errors and promotes the product among the consumers, right from the organization level.
PIM also assesses the growth and efficiency of teams and units. E.g., if certain teams are doing well, their data can be shared with less efficient units to improvise their growth.
Marketing and multi-channel distribution
The quick access to product information and description helps the marketing team to establish a relationship with consumers. Such information allows the store to gather specific reviews, feedback, and suggestions too. With proper marketing and single-point information, PIM could easily update the same to different channels.
PIM makes it easy to search, access, update, find and share the documents. They offer seamless collaborations, which make the life of employees happier by making the product data management easier.
The easy access to the document helps the team to take care of all probable grievances of the customer. Effective data management of PIM could also help the store in case of any eventuality of a consumer forum litigation, as the store can quickly gather the proof and prepare for the defense.
The progress of a business was a long time hindered by an overwhelming amount of scattered data. An effective PIM unfolds the avenue of an easily manageable and easy to work database. The effective PIM solutions help the business to plan strategies for future consumers as well.
The aware and informed consumer of modern times is assisted by smart devices, which not only help them to make decisions but also impacts their decision making. Here comes the role of Product Information Management (PIM).
An effective PIM not only encourages the buyers from going for a product but also improves the branding of the organization because of easily available information. The store and sales manager needs to work in sync to update the product information accurately and make PIM effective.
A PIM not only saves time for your team and increases sales, but it also prepares the ground for the product and sets up the base where a new product can also be launched. The reduced cost of unnecessary work helps the planners to direct the money to enhance the logistics and supply chain.
The efficiency of PIM coupled with logistics further improves the reliability of products and stores among the buyers. It helps customers make the right decision for the same product or choose from the wide range of products offered by the same store. Book a free call with us to understand how PIM can help you in your retail business.