In today’s world, customers have the power, not the sellers.
To create a memorable customer experience right from the jump, it’s necessary to keep your ecommerce website up-to-date and visually appealing—this can all be done with the support of a product information management (PIM) system.
Adopting a PIM requires a considerable investment: For any company, calculating the ROI of a PIM is crucial to understand the short- and long-term benefits of implementing a platform like this.
Below, we dive into the benefits of using a PIM, as well as how to measure and improve the ROI of your investment.
What is A PIM?
A PIM is a software solution whose foundation is a robust centralized repository for inputting, storing, organizing, modifying and disseminating product data. For ecommerce sites that offer multiple products from a variety of manufacturers, a PIM ensures all product data is uniformly entered and displayed for your customers.
When information needs to be changed or content needs to be updated, all you need to do is open your PIM catalog and adjust the records.
No matter your industry, managing data effectively puts you a step above your competitors—which is exactly what a PIM system does. It helps drive bottom-line impact by creating a better consumer experience across multiple channels.
Companies are reaping the benefits, too. In fact, research shows the PIM market is expected to grow around 25.1% between 2019 and 2027.
How to Measure the ROI of a PIM
For our mathematicians reading, calculating the ROI of a PIM involves a simple equation:
Now you may be thinking, “How do I calculate the benefit of the investment?”
The cost of investment is simple to find. However, the benefit of investment can require more effort to measure. Some users measure it in terms of efficiency, while others have measured how it has improved their company’s current data management.
Since some benefits may not be quantifiable (e.g. customer satisfaction), it’s important to find what “metrics” are most applicable to your organization and how a PIM can positively impact it.
Ways a PIM Improves ROI
Sales on your ecommerce website are going to increase greatly when you make it easy for your customers to browse and purchase products. Having a solid PIM system in place is a win-win for you and your customers—not only will it aid in creating a personalized experience for them, but it will also scale up your company’s ROI.
The following six elements outline how a PIM system can improve your overall ROI.
1. Enhanced Employee Productivity ⏩
Implementing a PIM reduces your team’s time spent collecting data and making updates manually. There will be less burnout on duplicated tasks and all employees can devote their efforts to reaching business and sales goals instead.
Since all the product data is stored in a PIM, employees don’t need to depend on a human to provide the latest product information since it’s already being uploaded to the PIM—this enhances employees’ focus on work. Overall, a PIM results in an organized ecommerce website, saved time and employee autonomy, all of which increase product quality and efficiency.
2. Speedy Product Launches 🚀
A PIM system makes it possible for your company to launch new products in half the time, therefore helping you:
- Stay ahead of the competition.
- Remain on top of changing trends.
- Be aware of your market demands.
It provides your team members the ability to rely on accurate and up-to-date product data.
3. Reduced Costs 💵
When you have a single, centralized system for all your product data, you’re going to be spending way less than what you would be trying to maintain on multiple platforms. You’ll spend less time training your employees on a single platform versus multiple.
4. Increased Customer Satisfaction 🏆
When you’re giving your customers better product information, they are going to find what they are looking for more quickly and are more likely to trust your brand in the long run.
In fact, as soon as a customer visits your website, you’ve got less than 15 seconds to grab their attention before they click off. Your customers could be leaving your site for a few reasons:
- When they don’t get what they expect.
- When your site isn’t usable or user-friendly.
- When they don’t know what to do or where to start.
- When they suspect you aren’t being genuine.
- When you fail to impress or inspire.
Your PIM system is there to support your efforts in creating a personalized customer experience and it helps you avoid the risk of losing their interest.
5. Fewer Product Returns ↩️
Research shows 48% of online shoppers who receive a product they dislike choose to return it instead of replacing it. Because a PIM system offers accurate, and easily accessible product information, it helps reduce the huge expense of returns —and save customers from the typical disappointment of receiving a package that was nothing like it was advertised.
6. Marketing Reinforcement 📈
A PIM is a great tool for ecommerce businesses. With all product information housed in a centralized platform, your marketing team can easily make up-to-date promotional materials (e.g. catalogs, blogs, ads, etc.) as soon as a new trend pops up.
Level Up Your PIM Game 👾
When it comes to adopting a PIM solution, you’re looking at reaching new horizons and winning over more customers. Contact us today for more insights on how to embark on the PIM journey, address legacy product data trapped in legacy PIMs, and more!