Product Information Management is a category of business applications and a set of business practices that are in place to manage product information for utilization in a business organization starting from the supply chain to the customers.
With a Product Information Management solution, business organizations are provided with a single platform to create product catalogs, collect product information, manage product information as well as broadcast information to your ecommerce and sales channels. Product Information Management aids businesses in improving accuracy, product data quality, as well as completeness. It also greatly eases the process of product catalog management while making it faster. Firms that utilize Product Information Management have an easier task reaching more markets, improving sales conversion rates, providing better customer experiences, as well as exploring new sales channels.
What is PIM Software used for?
PIM tools can be used in effectively managing different types of information relating to products. Think of it as a single source of all the information related to your products. These are emotional information, technical information, and usage information:
• Emotional Information: Emotional information includes well detailed and vivid product descriptions, vibrant images as well as stories which helps you to build an emotional connection with your customers.
• Technical Information: Technical information includes product specifications like color, size, material, ingredients, weight, length, etc.
• Usage Information: This covers necessary information like how to use the product, where the product should be used, as well as suggestions on sample usage.
How much does a PIM cost?
Product Information Software cost varies from company to company. Some of the companies offer the PIM tool free of cost, some on a SAAS model, and some on a yearly licensing model. The typical pricing ranges from $0 to $1000 (monthly) to $50000(yearly). If you want us to do a comparison of different PIM software, please contact us!
Advantages of Using a PIM System
Some of the advantages of using Product Information Management are highlighted below:
• Better Product Data Management: A Product Information Management system will help you to achieve better product data management. It is common knowledge that with the growth of a business, more products are introduced. This may cause a loss of information, disorganization, and mixups, which will negatively affect customer experience. With an effective Product Information Management system, this problem can be resolved. All information data will be accurately organized as well as managed. Sharing data across multiple channels also becomes much easier.
• Time Efficiency: An effective Product Information Management system will help you boost time efficiency. Getting things done swiftly is critical in business, as it improves productivity. With an effective Product Information Management system, you get to save time on tasks allowing you to focus on more important things. This system helps to automize repetitive tasks, thereby reducing manual entries. PIM makes inventory updates more straightforward and faster, as well as quickening product search.
It also becomes easier to streamline information and clean data. This way, data management frustration is reduced, keeping all workers in the right state of mind for efficient productivity. Employees have more time to tackle more profitable tasks, increasing all-round productivity.
• Cost Saving: With the right Product Information Management system, you get to save costs, as unnecessary expenses are reduced. Operational costs and supply chain costs are cut down with bad product data also eliminated. As information accuracy is ensured, management risks are reduced, allowing for cost-effectiveness. Product Information Management can also be employed for auditing and improvement of delivery, with the best methods explored and utilized. Bad stock items can be identified on time and swiftly removed, as well. All of these saves cost, improves the user experience, and gives a clear edge over rivals.
• Easy Integration: Product Information Management systems allow you to integrate and align your content across different channels. Prospective customers can connect to you from different platforms and angles to scrutinize your products. It is, therefore, vital that your branding and product data are consistent. This is why crafting a one-for-all product data for multichannel publishing is best. This gives your data much-needed consistency, which all customers love to see. With a Product Information Management system, you can put out your singular product data to various output in different ways to meet varying governance rules, different data requirements as well as to ensure the satisfaction of your customers. In addition to maintaining consistency, a good PIM will also ensure the relevancy of your product data. This will see the system localizing elements of your data to meet the taste of different audiences.
• Better Data Quality: The better the data quality, the easier it is for the customer to interact with you quickly. The quality of data is very crucial for the survival of every business, which is why you need an excellent Product Information Management system. High-quality data is suitable for one on one interactions on distribution channels. Creating a user-friendly interface alongside quality checks on product data and media assets will ensure that the quality of data is significantly increased and maintained efficiently. The ‘’golden record’’ principle, which allows you to create the perfect dataset by adding product content from different sources, is another way of increasing data quality using Product Information Management.
Who Needs PIM?
Product Information Management tool is a very efficient business tool. It helps to enhance product information and provide better customer experience amongst a lot of other advantages. The question many individuals have asked is, “Who needs Product Information Management?” We have highlighted seven signs that your business might need Product Information Management. They are discussed below:
• Scattered Product Information: When product information is disorganized, it is one of the signs that a company needs Product Information Management. In some cases, bits and pieces of this product information are spread across different media, which makes it disjointed. This is why you see some of the product information in an ERP, some in a spreadsheet, some in a Business Management System, some written on a piece of paper and unrecorded, and even some still as ideas in the brain of an individual within the firm. This reduces the efficiency of your product information, as it remains mostly incomplete. With a Product Information Management system, all product data can be securely recorded on one platform, making it highly effective.
• Conflicting Product Information: If there is contradictory product information within a company, it is clear that you require a Product Information Management system. Conflicting product information can occur during updates if the original file and the newly updated one are identified as one. It means that after every update, there will be new files which can cause a mix-up and lead to misinformation. Using a Product Information Management system, all updates will be duly recorded on a single master product information file across the whole network. This thereby reduces multiples files and prevents conflicting information.
• Product Information is Hard to Come By: Sometimes, you discover that employees spend much time looking for product information. This is an indication that product information is stored in different locations, rather than in one system. This sometimes leads to the loss of valuable product information, which might prove crucial to business plans. In such a case that company is in dire need of a Product Information
Management system to ensure easy access to product information at all times.
• Inconsistent Formats: When a company’s product information is stored in inconsistent formats, it shows that such a company needs a Product Information Management system. In most cases, when data is stored in different places, it also takes different formats. This is why some product information is saved as SKUs in a business management system, while others are stored as ISBNs on a spreadsheet and others as UPCs. If the product information is kept like this, it will be difficult for anyone to realize all three are for the same product. In the same vein, it will be hard for software systems to process the data. This is where a Product Information Management system comes in. A sound PIM solution will save product information in one master location and inconsistent formats. This enhances productivity as it promotes time efficiency.
• Discovering Mistakes After-Sales: There is a high probability of committing mistakes, which will only be found after the sale when a Product Information Management system is not utilized. These mistakes could include selling a product below cost due to an outdated pricing chart. Such a mistake can be avoided by using a Product Information Management system. A PIM solution will ensure you have complete, up-to-date, and accurate information with no errors whatsoever.
• Customers Receiving Inaccurate Information: Giving customers wrong information is one major cause of customer dissatisfaction. This affects customer loyalty and could see your competition getting the edge over you and for example, listing an unavailable product in the inventory due to an outdated chart. This counts as inaccurate product information and will bring dissatisfaction to customers when the unavailability is later discovered. With a PIM system, this will be avoided, as the product information is automatically updated. Customer satisfaction is, therefore, fully guaranteed at all times.
• Customers Receiving Inaccurate Orders: Along with inaccurate information, receiving incorrect orders is another cause of customer dissatisfaction. Incorrect orders can be caused by saving products in inconsistent formats. For instance, an SKU which is recorded in multiple locations can cause a mix-up in listings. This could see a customer receiving a product of the wrong color or size. A product with error in its product configuration rules can also cause an inaccurate order. These inaccuracies can be resolved by a PIM system, as it saves product data in one master location and carries out necessary updates regularly.
If you are encountering any of these issues in your company, you should get a PIM system for smooth running and better customer experience.
What Are The Main Features Of PIM?
A Product Information Management system with its amazing features is essential for business ventures in this modern age. Download the complete and exhaustive list of features containing 200+ features here https://www.ecommercenext.org/pim-dam-rfp/ Some of the significant features of Product Information Management are:
• Ease of Data Importation: Product Information Management systems help you to import data with more ease and speed. This function helps especially when you are using different operating systems, multiple tools, and devices to store data. Importing data manually will cause technical difficulties. With a Product information Management system, your information can be introduced across different distribution channels quickly, increasing time efficiency and quality of output.
• Integration and Connection: Product Information Management allows you to integrate your information resources and technical stack with ease. This is why you can connect all supplier’s product data, mobile apps, online storefronts, internal ERP system data, print catalogs, POS systems, and all other necessary systems. An effective PIM system will have connectors that will streamline operations and facilitate interoperability among these systems.
• Bulk Editing: Editing product data that are stored on multiple distribution channels can be quite tasking. With a Product Information Management system, you can get this editing done cumulatively. This gives your product information better consistency across different platforms. It also saves you the time that will be spent on manual editing, allowing you dedicate that time to more productive endeavors. Without using a PIM system, you are likely to invest too much time and energy on editing across many distribution channels, one after the other.
• Automation of Repetitive Tasks: A PIM system should have an automation feature, which makes work easier. This feature streamlines processes by eliminating repetitive tasks. Bulk tasks are carried out by the network, allowing you and your marketing team to carry on with more productive activities.
• Ease of Usage: A PIM system should be straightforward to use. It must not be too technical, that only experts can handle it, but be easy enough for every member of the marketing team to operate. This is why a PIM system should have a friendly interface; this helps you to come up with product information solutions swiftly. This improves productivity and makes teamwork more uniform and hitch-free.
When Does One Need PIM?
Business organizations of all sizes and in different industries stand to gain a lot from utilizing a Product Information Management system, as an additional tool. PIM, however, becomes a valuable tool and necessity if:
• Your company uses omnichannel commerce (multiple distribution channels) and has difficulty choosing which product to release in each channel.
• Your company has a complicated product data setup with a wide variety of products and requires a large volume of withe force to organize the quality.
• Your company seeks to quicken the launch of new products in the market.
• Your company seeks to improve the quality of product information and maintain the consistency of product data across multiple channels.
• Your company needs to collect data from different suppliers to systematically update product information.
• Your company seeks to improve customer experience to minimize complaints and product returns.
• Your company wants to build custom product feeds and track sales progress swiftly.
• Your company seeks to meet all compliance processes and strictly adhere to the regulations in every country.
With an effective Product Information Management system, you can adequately address all these business needs with little no stress.
Is PIM the Same as a DAM?
Product Information Management and Digital Asset Management are usually confused for one another. They are, however, not the same tool, even though both devices are essential in today’s world. In simple terms, Product Information Management is responsible for product information, while Digital Asset Management is used for digital assets, such as videos, logos, and images relating to products. A PIM system will allow you to store, distribute, and manage these digital assets along with other product information.
DAM and PIM are also mixed up, and this might be because some PIM systems come with DAM functions. This does not make them the same tool. We will further differentiate between the devices below.
Difference Between PIM and DAM
The PIM system is concerned with the product information of a company and how it is shown on the company’s sales channels as well as its marketing distribution channels. These channels include social media, e-commerce sites, as well as print media. The primary function of PIM systems is to see that all product information sent to the general public is consistent, accurate, and of the highest quality. This way, the company can disseminate well-detailed product information. Through this means, PIM systems assist customers in making the right purchasing decisions.
Digital Asset Management, on the other hand, deals with digital assets that are not focused on products. These assets include presentations, meta-information, images, as well as documents. DAM systems are deployed by the sales and marketing department of firms to collect branded and promotional materials as well as save them. It is also used to ensure that brand guides, videos, and images of a company are kept safe, protected, secure, and accessible at all times.
Both PIM and DAM systems are easily accessible and highly centralized, both serving the purpose of the organization in promoting sales and improving the quality of customer experience.
When To Use a DAM System?
We have addressed the usage of the PIM system and when to use them in a heading above. Here we will discuss when it is ideal to use a Digital Asset Management system. A DAM system is perfect for situations in which non-video and non-audio files are available and need to be broadcasted to an audience or streamed. This system is also great for transcoding videos, as well as archiving materials. DAM systems help you save time by streamlining asset retrieval.
Is PIM the Same as MDM?
MDM is a tool that creates a centralized record of master and reference data across separate domains. These domains include product domain, customer domain, supplier domain, location domain, and more. The primary function of MDM systems is to make accurate and highly consistent information easily accessible to all divisions in an organization. In a way, PIM is a subset of MDM, as it focuses on product information and ensuring its quality and consistency.
Just like Digital Asset Management, Master Data Management (MDM) is often confused with Product Information Management. We will discuss the difference between these tools in this heading. In the simplest of terms, Master Data Management is a single data source for all the information owned by an organization. Product Information Management is in charge of just product information solely for marketing. Going by this, PIM is an implementation tool, which is mostly deployed by the sales and marketing system of a company. MDM, on the other hand, is all-inclusive, making it a tool used at all levels of any enterprise.
MDM and PIM are, therefore, not the same, although their functions overlap in the area of product information. MDM systems help to remove data inconsistencies that affect the smooth running of the business. This way, it aids business operations and ensures better service provided.
I Already an Ecommerce Platform, Do I Still Require PIM?
Yes, you still need a Product Information Management system for all the advantages it has to off-to-day. Some of the benefits it provides are shorter product lead times, enrich product data, increases up sales and cross-sales, fewer product returns, and consistent cross-channel product information.er. PIM has all the features you need to keep your ecommerce platform running smoothly from day.
This article thoroughly examined everything you need to know about Product Information Management, its advantages, features, and usage. It is quite clear that it is an essential tool in today’s business world. With a sound PIM system, you can handle all that concerns product information with no stress. Coherence, accuracy, consistency, and quality of data are guaranteed, while product returns are significantly reduced. Automated tasks make work faster and easier, while bulk editing also eliminates the need for updating multiple channels. Harnessing the qualities of a sound PIM system is very important for every top business organization to stay ahead of the competition. There is a wide range of PIM solutions available online. This is why you need a comprehensive list of the best products with well-detailed reviews. For everything you need to know about different PIM systems visit https://www.ecommercenext.org/web-2-0-directory/directory-category/pim/