2020 should be a rosy year for e-commerce. By 2022 a Predicted growth to $ 6.5 trillion. And then Corona came. But even if the pandemic has changed a lot, one major challenge for online retail still remains, namely that of offering customers an excellent product experience, detached from brick-and-mortar retail. For this to work, above all the basis has to be right. In this case it is the product data.
A centralized Product Information Management System (PIM) supports B2B and B2C companies alike in centralizing and managing all marketing-relevant and technical information about their products. This includes article numbers, images, product descriptions and other assets. It not only ensures better product data quality, but also ensures that every customer can access the right product information at the right time and in the right place.
A PIM system is able to automate time-consuming and cost-intensive internal processes associated with product information. Too often, product information is still managed and processed in unsuitable systems, often even in table documents. A PIM system creates a “single source of truth”, i.e. a central source for the product content that the various teams and departments can manage directly via a user interface before they send the information to an ERP system, a catalog or transfer your own webshop.
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You always have an overview of the various product management processes and can easily track them. A suitable PIM system also provides those processes with which tasks can be assigned to all responsible teams and departments in a joint workflow. This not only increases efficiency and productivity in the company in the long term, employees can also focus on tasks that make a greater contribution to the value chain, such as improving the product experience.
It is currently more important than ever for companies to offer customers an optimal product experience at every touchpoint. Therefore, it is important to design them individually on all channels, regardless of whether in the social networks, in the online shop or in the local store.
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The use of a PIM system enables companies to bundle all product information in one place and then display it in a targeted manner. This creates an optimal product experience, regardless of whether the range includes 1,000 or a million products. Studies have shown that at this point a PIM system has a Increase in the conversion rate by 20 to 50 percent which of course also entails considerable increases in sales and profitability.
In many companies, all the necessary product information is often distributed in various isolated solutions across various locations, departments and teams. The search for specific information is therefore very time-consuming and often has to be done manually. The longer employees with specific product expertise are in the company, the more important it becomes to “retain” this knowledge.
With the right PIM system, all product information is centrally accessible for all employees. Even large amounts of data can then be standardized and cataloged without any problems. The data is also linked to the respective products in order to automate the enrichment with image files or function descriptions. Product changes can also be rolled out quickly and easily.
If a new product is about to be launched on the market, all the stops in marketing have to be pulled out – and quickly. Without efficient product information management, it is only possible today with a great deal of personnel effort to be present on all marketing channels at the same time with consistent product information and to attract attention.
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Especially for companies that operate in many international markets and therefore have a high level of localization effort, product information management is a tool that makes the mass of product information manageable. With a suitable PIM solution, companies can ensure that this process takes place without errors and that nothing stands in the way of the market launch of new products. The time to market can be like this ideally be reduced to a quarter.
Consumers have high expectations of their favorite brands and therefore expect an optimal product experience across all channels. With a PIM system, the respective companies always have an overview of all product information on the various channels.
In this way, they not only guarantee their correctness and completeness, but also guarantee uniform brand messaging at the same time. In addition, they can react more flexibly to the growing and constantly changing requirements of their customers, build trust through consistently good information and thus secure long-term loyalty.
If handled incorrectly, returns can have a significant negative impact not only on sales figures, but also on a company’s reputation. According to studies are almost two thirds of the returns due to incorrect product information. This is particularly the case when the product information is localized for different markets, but this information is not entered and managed via a centralized platform.
A suitable PIM system ensures that product data and assets in the online shop are displayed up-to-date, correctly and convincingly across national borders. In this way, the customer knows exactly which article he is ordering. Conversely, companies can prevent uncertainties and prevent the item from having to be sent back. The numbers speak for themselves: at retailers who have integrated a PIM system into their online offerings, returns have decreased by up to 40 percent.
Keeping up with customers is not always easy. However, product information management systems (PIM) make it a lot easier. Not only do they help companies manage their product inventory, they are also able to reduce costs and increase sales through higher conversion rates. It is therefore not particularly surprising that the PIM market is growing steadily and that both B2B and B2C companies are using appropriate systems to adapt to the ever faster buying habits of their customers and to offer them a comprehensive product experience.