Product Information Management (PIM) is part of a growing market globally. The PIM market is growing by 25.1% from 2019 to 2027. PIM solutions offer better business techniques by managing the products in systematic formats. Thus, it is very essential to measure the ROI of PIM system for your business.
The ROI of PIM systems can be worthwhile only when the return on investment is higher than expected. The PIM system can offer several benefits to the business, including data accuracy and consistency. It will improve the figures for ROI. The number displayed by the PIM ROI calculator will represent a higher increase in revenue by reducing costs.
Product Information Management Value
Product Information Management (PIM) offers benefits to the business. The value of PIM can be calculated by the advantages that it offers in terms of accurate data with higher consistency. Accurate product information will enhance the business by offering the most required information about products to the customers.
Incorrect and incomplete information about the products may allow a customer to cancel the order, even if you have to pay an extra amount for the return of the product and the cost of shipping. But the exact information about the products given in a systematic format will make a customer interested in the business, and the organization will have higher profits.
How to measure the ROI of PIM system?
A product information management (PIM) system helps businesses to generate more net returns in several ways when compared with the amount of investment business stakeholders did. Well, let’s see how PIM generates better ROI and how you can able to achieve measurable ROI with your PIM system briefly below.
For achieving better and measurable PIM ROI, first, you need to make your team more efficient and should develop an environment where you can able to manage all your product-related information in a centralized single location.
By doing so, you can cut the operational cost significantly and ensure all your consumers get a positive experience with your businesses. In addition, it will improve your business sales volume and increase your brand loyalty among the target audience.
A good PIM system plays a key role in enhancing the up-selling and cross-selling operation of your business by creating new opportunities.
According to the recent survey conducted by the Yankee group which is a US-based leading independent technology research and consulting firm, figures companies can able to save a minimum of 25% of the cost with the influence of PIM solutions across 18 various business functions.
More importantly, the implementation of the PIM system reduces the workload of the employees significantly across the departments.
Let’s take a closer view of how PIM delivers measurable ROI to an organization/business.
1. Increases Efficiency & Improves Business Processes
PIM system helps businesses to streamline their business operation through its various benefits like eliminating data duplications, improving data accuracy, better inventory management, and so.
By improving the work efficiency of the workers and improving the quality of product information, PIM reduces the product return rate significantly. Once consumers manage to get complete and accurate information about their products than what else would they wait for? They simply purchase it.
Having a good PIM will reduce the time taken by the new product to reach the market. And also, the expansion of businesses across overseas markets becomes much easier with the presence of the PIM system.
2. Increases Product Sales
Just mentioned early, PIM delivers more accurate and complete product information which triggers viewers to turn customers and increase product sales. Moreover, PIM helps businesses to create more appealing product details like placing attractive images, videos, digital assets and so.
All these digital initiatives taken with quality product data help businesses to improve their business sales.
3. Reduces Stockouts
Having an effective PIM system will never let your brand down in front of your customers with the message of ‘No Stocks’. Instead, the system understands the needs and what buyers are looking for and displays the alternate or relevant products which will prevent sale loss and customer attrition.
Moreover, PIM integrates suppliers with the brand inventory system and creates a more collaborative work environment. This helps suppliers to identify the out-of-stock products well before and refill them.
What is the ROI of PIM system?
After implementing a product information management system, your business offers useful product information to the customers. It will help in getting a return on investment for the product information management system. ROI of PIM can be of two types: quantitative and qualitative.
The quantitative return on investment mainly defines
- The increasing investment
- Reduced rate of return
- Increases conversion rates
- Advantages of PIM processes over manual processes
The qualitative return on investment mainly defines
- Improves user experience significantly
- Enhancing the quality of data and
- Its impact on business and customer management
- The usefulness of product information and the efficiency of operations
Quantitative ROI of PIM System
An organization can trade more items because of faster product delivery.
Reduced cost of returns
The rate of returns gets reduced, which helps reduce the cost of returns for the business.
High-quality data helps increase productivity, and manual processing will be stopped.
Enhances conversion rate
Accurate product information helps increase purchases and buying processes.
Qualitative ROI of PIM System
Improve customer experience
Personalized information and scalable product data drive brand loyalty.
Enhances data quality
It offers various digital tools to enhance data accuracy & data consistency in the product information.
Effective product information
The inter-process of analyzing and managing the data allows effective product information to be reached the customers.
Highly efficient operational processes
Every business process will be streamlined by offering higher productivity and effective communication. It reduces manual work completely.
Return on investment plays a very vital role in the planning, implementation, and execution of product information management system management. The increasing rate of investment always offers higher business deals, higher investments, and higher profits to the business at every level. ROI keeps track of the investment of PIM.
How do you measure the ROI of PIM system?
Before investing in a PIM system, it is required to determine the PIM ROI and get success as per the measurable plan.
There are several problems that the organization can face while implementing the PIM solution. It may disorganize the product management process and also result in time waste.
The factors involved in the measurement of the ROI of PIM can be defined, and they help in determining sales and growth. It also helps in measuring cost savings.
To determine the return rate, consideration should be given to the percentage of products returned due to product data that is below standard or of poor quality. The data with an accurate product description will be returned.
The consistency of the data can be useful in understanding the completeness of the products as well as their quality. It defines the higher the data integrity, the better the quality of the data.
PIM ROI indicates the usefulness of PIM, which not only eliminates mistakes but also saves time by offering low-cost debugging methods.
Advanced product search
PIM can make the search operation highly advanced with the help of advanced product search capabilities. It offers consumers advanced features that can help in searching for the requirements in the fastest and easier way.
Product catalog development
It also allows for product enrichment by offering a list of the most affordable products. PIM allows for storing information regarding the products in a catalog that can be easily accessed by the consumers.
Leverage the catalog management capabilities of a PIM solution for the effective management of accurate and updated catalogs.
Localize global products
PIM can keep track of the product data as per the market’s requirements, and it also allows for faster delivery of the products to increase sales volume. The products can be localized, which allows them to reach a global audience at local expenses.
Targeting individual expenses
It is one of the advantages of the PIM system to target audiences individually with the help of personalized products. The products can be defined by creating personal product content that remains highly effective.
Limited data processing
The PIM system can support data in numerous formats and offer easier import and export operations of the data inside the system. PIM not only reduces business expenses but also decreases data processing time. Data can be processed easily in a limited period by offering better results.
The sales growth can also be measured using PIM KPIs. It can manage the total turnover and conversion rate. KPIs can also measure the ROI of PIM, a product information management system.
PIM software helps you reach new customers who have the potential to buy your products and grow your business. PIM also offers various routine processes and helps in integrating the data within a limited period. PIM, with its done value, is a part of expenses but not involved in the product data.
Most businesses work according to the product data quality issues that may affect the business and lower sales. But so far, certain operations cannot comprehend the related processes. PIM solutions can be utilized in an effective way to enhance reliability and product quality.
It is not only the next repetition of the brand but also the operation’s efficiency. It helps in managing the business by keeping costs low.
These processes help manage the value of the ROI of PIM.
To measure the ROI of the PIM system, you have to make use of the following formula.
ROI = (Net profit – Investment Costs) / Investment Costs x 100
To analyze half-yearly or annual profits, you have to make use of specific metrics.
The impact of a PIM on your ROI
The PIM system can offer civil advantages to the organization. According to a recent study, it has been observed that PIM can generate 10 times more growth and 5 times more profit in an organization.
1. Enhances productivity
Productivity can be increased by reducing the time used in storing the data, revising the procedures, and updating the requests using manual processes. The repetition of this task will be reduced, and efforts will be made to improve the brand and sales activities.
The superior-quality products will help the organization increase productivity by offering well-defined products with the most systematic marketing approach.
2. Launching the products faster
The catalog can be generated by displacing the product information. It will help during the launch of new products. This product will be delivered to the market and can become a part of changing trends and increasing demands in the market.
The PIM system not only offers reproduction in a well-designed format for catalogs, but it also has a well-managed distribution system that can help in publishing product information across various platforms. It helps the customers get the delivery of products as per their requirements and according to their schedule.
3. Keeps track of management costs
The cloud-based PIM system remains central and can manage every product according to its cost and required maintenance. It manages multiple systems on various computers. It also manages to have personal reviews regularly.
It also offers training for the workers and helps them learn quickly. It certainly reduces the maintenance cost. PIM technology keeps track of every management process and also maintains the entire database according to business requirements.
4. Higher data quality
The PIM system offers the most useful benefit that makes product information management the most effective. It not only manages the data by reducing the inconsistencies but also by removing the errors completely.
The quality of the data will be enhanced, and it will have a positive impact on the entire processing process. It can also manage different languages to be used as per business requirements.
PIM systems announce that the quality of the data remains high. It has a positive impact on the customer experience and also leads to better business understanding.
5. Better shopping and a higher customer experience
PIM software offers higher influence while promoting the products into the market. It certainly helps in building the brand’s value, and it also offers product information to customers at all levels.
The services it offers can help in the faster delivery of the products as per the requirements of customers. The customers get the highest satisfaction.
6. Loyalty helps in business operations
The PIM system offers products with suitable content and trustworthy products. Most of the customers who do not want to spend time searching for products can directly choose the products from the product catalog by trusting the brand.
The loyalty program plays a very important role in the business’s development and also makes the customers happy. The customers will keep repeating the orders in the future.
7. Increasing average spending
The customers who feel happy about the set of products available and the trusted brand value of the products. It will help the customers to spend more while purchasing the products from the product catalogs available.
Customers who feel satisfied with having higher-quality products and reliable services will spend more and keep offering better business opportunities. It will help in increasing the average spending of the customers, which is a bigger benefit for the business.
8. Limited returns make better business
The PIM system offers a systematic business technique that helps in offering high-quality products with complete details to interested customers. It helps reduce product returns. The products will offer accurate information with a higher level of content. PIM makes sure that the customers get faster delivery of the products that are in demand in the market.
PIM with a positive ROI is a part of an organization that offers excellent quality products to its customers. The brand value of the products will become part of a reliable service and a trustworthy brand.
It will offer an exceptional shopping experience to customers across the globe. PIM helps generate a positive impact on the workings of the organization and also on the team of employees. It will help in enhancing the performance of the employees and the overall productivity of the organization.
PIM software offers some of the best business techniques that can help an organization not only sell its products but also have a better relationship with its customers across local and global markets.
PIM will work expertly in analyzing the data from the lower level and enhancing the product quality at the higher level. PIM also builds strong customer relationships by offering high-quality products of brand value that customers can trust for generations.
PIM solutions require a significant investment. But the calculation of the ROI of PIM is one of the most critical procedures. The adoption of PIM ROI can mainly offer short-term or long-term benefits to the business.
Most of the organizations that adopt PIM solutions are getting the required assistance in managing digitization processes.
The usefulness of PIM procedures will make the business successful by using product information as a bigger influence. PIM has become one of the most popular ways of managing the business, maintaining the products, and building strong relationships with customers.