Most of the small to mid-scale organizations prefer to manage the product data in different systems and files manually. Eventually, they end up dealing with scattered data.
Managing the product data in ERP, spreadsheets, PDF, and other formats may help you to save the cost of developing and implementing a Product Information Management solution at the first sight. But, later on, you need to invest a lot of time and effort to get an insightful and unified view of all your product data.
Have you ever experienced this?
While managing the product data in a conventional way, it becomes difficult for you to aggregate the data seamlessly and get actionable insights on various product-related aspects.
Opting for a reliable PIM solution, you can collect and manage thousands of products efficiently in a centralized platform.
What is Product Information Management (PIM)?
Product Information Management is a centralized repository of all your product data. It collects, stores, manages, enriches, and distributes product data across the different sales and marketing channels. It allows you to create catalogs on the go to convert your prospects into customers.
Using PIM, brands can tell a consistent product story across the varied touchpoints and create and deliver compelling product experiences.
What are the Outstanding Capabilities of Pimcore’s PIM?
The very first reason for considering Pimcore’s PIM is, it is an open-source platform. That means, there is no licensing cost. All you need to consider is the cost of PIM implementation and customization.
Compared to other PIM systems, Pimcore provides an extreme level of flexibility by allowing organizations to integrate any number of tools and systems regardless of third-party software and existing enterprise systems.
Allowing to integrate other systems, Pimcore ensures to manage all the relevant data in PIM solutions. Not only that, the solution enables you with aggregated, consolidated and meaningful insights about the all data available in the product information management solution.
Core Capabilities of Pimcore’s Product Information Management
- Manage product data effectively in a centralized repository
- Integrate different third-party systems and database seamlessly
- Manage product information in a well-structured and logical way
- Eliminate data duplication
- Update product quantity on the go
- Allow different teams to access updated product information on the go
- Perform data merging, data cleaning, and data enrichment
- Manage and share the available quality of products
- Provide an aggregated and consolidated view of all product data
To enable organizations with all these advanced capabilities, Pimcore’s PIM contains robust features like data management, data modeling, data quality/semantics, workflow management, and data integration and delivery.
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Integration with Other Pimcore Frameworks
You can integrate the PIM with the other Pimcore frameworks to empower your product and data related operations. You can integrate Pimcore’ Product Information Management with
Digital Asset Management (DAM)
Manage all the product-related media assets such as images, videos, documents, graphics, intellectual properties, etc. in a centralized repository.
Master Data Management (MDM)
Add and manage all the custom attributes of products in the MDM.
Digital Experience Platform (DXP)
DXP allows you to promote and sell the right product to the right customer at the right time through the right channel. Basically, it allows you to enable each customer with a personalized journey and experience.
Digital Commerce Platform
As the name suggests, it allows you to build B2B, B2B, and B2B2C portals where you can sell your products to your target audience.
Customer Data Platform
Allows you to leverage personalized marketing of the products by providing a 360-degree view of each of your customers. You can manage, consolidate, and segment customer profiles.
You can utilize all the capabilities and feature sets of Pimcore’s PIM as well as integrate them with other Pimcore frameworks as per your business needs with the help of an internal IT team, Pimcore, and Pimcore’s partners like Credencys.
By implementing a robust PIM solution, you can leverage a lot of benefits. And, one of the most important advantages is increased ROI.
Is it something that you are interested in?
Let’s delve into how Pimcore’s PIM boosts your inflow.
How Pimcore’s PIM Helps You Generate Better ROI?
The product information management system handles all the product-related data in an accurate, up-to-date, and complete manner with all required attributes. This empowers collaboration amongst your internal teams, improves governance, and provides syndication to all your sales and marketing channels to deliver persuasive product experiences.
Eventually, you end up achieving a new revenue stream and optimizing the existing ones.
Improved Product Time-to-Market
Product data enrichment capability of PIM accelerates new product onboarding. It allows you not only to save money but also to generate revenue by addressing the biggest pain point of all merchandisers that is a long and complex new product launch cycle.
Before moving ahead, let me ask one question.
How much time it will take to onboard a new SKU merchandise?
The most common answer to this question is around 6 or more than that. The reason behind such a long time duration is the complex or manual product data enrichment process that involves collection of the right product info, adding all relevant attributes, validation of data, and distribution of updated data on multiple output channels.
In this scenario, merchants have the products that are ready to ship, but due to the complicated and time-consuming data enrichment cycle, they need to wait until their products get launched on different digital platforms.
During this time, they have to pass through monetary loss.
The more new product SKUs you want to launch, the more downtime you need to face.
Without a PIM, the product onboarding will take around 6 weeks and more. But implementing Product Information Management, you can launch the products in almost half of the time that is in 3 weeks.
You can improve the product time-to-market as the PIM system streamline and automate many of your product onboarding processes.
To check the value of improved time-to-market, you should start by counting the number of products you release every year and the average sales price of those SKUs. It helps you to get an estimated value that these SKUs add to your each business day. Ultimately, multiply the value by the number of days a PIM like Pimcore reduces product onboarding time provides you better ROI.
Improved Data Quality [H3]
Product Information Management allows you to create and deliver compelling product experiences. But, of course, you won’t be able to achieve it with inconsistent and inaccurate product data.
Organizations that manage the data in spreadsheets or PDFs deal with a lot of errors when they try to aggregate, syndicate, and consolidate the product data. As multiple teams working in silos at the same time, the problems quickly multiply.
When you have a PIM solution in place, it becomes easy for you to manage the data centrally by improving the product data quality. You can update the data easily and access them quickly. This directly eliminates silos and error-prone tasks.
With better data quality,- you can boost the productivity of your team and improve the customer experience that indirectly helps you to generate greater ROI.
Efficient Product Data Enrichment
Time is money. For merchants, this is not just an adage. It’s a fact of their life. Especially, when they have to stay competitive in today’s omnichannel world.
Pimcore’s PIM allows startups to brands to accelerate the product enrichment process by engaging fewer resources.
As we all know product enrichment is closely associated with employee productivity cost, merchants need to analyze how many employees they need in order to manage the data in the defined format. Later on, they need to consider how much time the employees take for product data enrichment.
Let’s take an example; you engage your 10 employees for the product data enrichment tasks who invest 25% of their time in the task. It costs you approx. $250,0000.
Using Pimcore’s PIM you can faster your product data enrichment cycle by 50% and reduce your data enrichment costs up to $125,000 approximately.
Grow Your Business with PIM System
To increase product sales, what do you need?
You need to launch your products quickly on your website, eCommerce store, marketplaces, and other output platforms. Is it true?
PIM allows you to do the same by managing all the product-related data in a single platform.
Yes! You can manage product data, images, translations, etc. in the product information management system.
Moreover, PIM permits you to link the adapter to the market places for automated and quicker data syndication.
PIM allows you to update the required content and go live.
When the companies can update the product data on the go and publish it with no delay, they can increase online conversion by 10-20% through content completeness. Thus, PIM directly contributes to increasing sales, eventually, the revenue.
Multiple Catalog Management
Do your conventional ways of product information management allow you to expand your product line quickly?
PIM system enables you with endless capabilities that allow you to expand your product line in no time as well as create and manage multiple product catalogs.
Pimcore’s PIM solution allows you to create product catalogs for your suppliers, vendors, customers, marketplaces, etc. You can manage big stocks and better product lines effectively with the PIM. Moreover, it provides flexibility to the merchants to manage and sell more products across the different output channels.
For example; in the next four quarters, you are planning to expand your catalog by roughly 10,000 SKUs, 2500 in each of them. You need to estimate what these new SKUs means to your business.
If you earn $30,000,000 with 70,000SKUs, then how much return can you expect with 80,000 SKUs?
Using Pimcore’s PIM, you can earn approximately $1,40,000 as new revenue-based whether you’re selling main products or accessories and when the products are released.
Better Conversion Rate
Enabling customers with complete and quality product information, merchants can ensure them about the product they are planning to buy. Gradually, they can start generating better ROI.
Allowing you to manage product information in a better way, PIM improves Google indexing and search
functionality that helps you to increase the number of orders and conversion rates. Let’s have an example of this.
For example; your eCommerce site gets 20,000,000 annually. If you are getting a 2% conversion rate, you can generate 400,000 orders throughout the year.
Implementing the Pimcore’ PIM, you can give a relative lift of up to 6%. Suppose you are able to increase the conversion by 4.06%. Then, you can increase the number of orders by 406,000.
To calculate the revenue lift through the PIM system, you need to multiply the difference of 6000 by your AOV (Average Order Value). In this scenario, with $200 AOV, the merchant can expect an additional $1,200,000 revenue per year using the PIM.
Reduced Product Return
When you provide complete information about the product to customers, they feel confident about the products they purchase. The more customers are convinced the more they are satisfied with the product. This reduces the product return rate.
Product return is the burning issue for the merchants. According to a survey, up to 40% of the online orders are returned by customers that have an average cost of $25 per return. Calculate the loss of merchants.
Reduced rate of product return impacts your bottom line. The reason for the product returns could be the customers cannot understand the product they are buying. Law quality product information delivers poor product experiences that increase return rates.
Leveraging the advanced capabilities of PIM, merchants can deliver better product experiences. Pim implementation allows merchants to reduce the product return by up to 10% and boost the ROI.
For example; if you are making 400,000 transactions per year and 30% of the customers are sending their purchased items back that means 1,200,000. If we consider $25 per return the merchants have to bear a considerable amount as loss. With PIM, you can reduce the number of returns by 12,000. So approximately, you can save $300,000.
Implementation of Product Information Management not only helps you generate a better ROI but also manages the product effortlessly by maintaining the data quality at the same time.
I hope the number mentioned here gives you a rough idea about how a PIM solution contributes to increasing your ROI either by saving operational costs and generating extra revenue streams.