Product Information Management (PIM) is a relatively new concept that is playing an important role in the field of business and IT. Also, due to the rapid growth of the eCommerce industry PIM frameworks are becoming increasingly popular. Processes, workflows, and integration systems that enhance product information are supported by PIM software. We’ve listed below some of the purposes a PIM system does. But first let’s have a quick look at what is a Product Information Management (PIM) tool.
What is a PIM tool?
Product Information Management (aka PIM tools or simply PIMs) is a software application that functions as an organizer that collects information from various sources, including suppliers and databases, and allows editors to access the information centrally. It facilitates recording, tracking, and management of all the product information you require to market and sell on multiple channels.
However, we have observed that people often get confused between Product Information Management and Product Catalog. In order to get a better understanding of what exactly PIM systems do, let's first examine how these terms differ.
Product catalogs and PIMs:
Product catalogs are databases containing information about products. Atop the database, there is software that communicates and processes the product information. Database-driven software, such as ERP software, often includes a user interface. But, this database-driven software is not designed to enrich product information, which is a hindrance. Unlike pure PIM systems, ERP systems are created for enterprise resource management.
PIM systems also rely on databases to store information about products, but their main attraction is that they can support interactive workflows and parallel editing processes. When the product information is complete, it will indicate what mandatory information is missing.
PIM and ERP software solutions add value to eCommerce businesses. Data from the PIM will be merged into the ERP system, which will then be shared between back-office applications in order to automate and streamline workflows.
The Working of PIM:
There are three main divisions of how Product Information Management systems work:
Compilation | Organizing | Distributing |
1. Data can be collected through ERPs, IMSs, or supplier databases | 1. Provide a central location for all information about the product, including descriptions, images, videos, instructions, etc. | 1. Multichannel management, such as online marketplaces, online social networks, third-party seller sites, eCommerce websites, etc. |
2. Enhance product descriptions by removing redundancies and inaccuracies. | 2. Organize product hierarchy by categorizing and dividing products into categories | 2. Data distribution among channels according to their characteristics |
These working principles help us understand how critical a PIM system is for any business. There are various other advantages of a PIM solution that show why we need PIM for any leading organization. Few of them includes:
Reduced Burden with Automatic Updates
Manually modifying spreadsheets is time-consuming and often leads to errors. When several people work simultaneously, the chances of errors increase and make it impossible to maintain one authoritative resource.
What can PIM do for you?
When an admin updates product information in an eCommerce PIM system it syncs automatically across all sales channels. It eliminates the need to manually update and manage product information. As part of the system, it is also possible to schedule updates beforehand, simplifying the process of updating information.
Ensures that Data is of High Quality
Ensures high-quality data, leading to errors if not managed properly.
Accuracy and redundancy can further reduce customer satisfaction, abandonment of carts, and cancellation rates.
What can PIM do for you?
Multiple sources of data can be combined and managed with PIM solutions. Additionally, it will eliminate inaccuracies and duplicate data across the board.
Better Management with a Single Source
With disorganized data, finding the right information is difficult. It is like walking into a store and finding items scattered around. Consequently, the customer will have to wait longer, as the shopkeeper won't be able to find what they want.
What can PIM do for you?
Using a PIM system helps collect and organize data. So, the team doesn't have to refer to different sources frequently or share information multiple times with customers.
Enhances Customer Experience
Product returns and cart abandonment are higher on websites with outdated, incorrect, or incomplete product information. There will be a sense of frustration among customers, consequently affecting their experience adversely.
What can PIM do for you?
The purpose of a product information management system is to maintain the accuracy and reliability of data. The data is complete, categorized appropriately, and updated regularly (via automatic synchronization across channels). Representing information accurately contributes to a positive and pleasant customer experience.
Offers Personalization
Product recommendations allow you to personalize the shopping experience for customers. Almost 35% of Amazon's revenue is derived primarily from recommendations, according to Mckinsey. For a recommendation engine to work, however, it needs precise and up-to-date product information.
What can PIM do for you?
A PIM system ensures the accuracy of product data through a centralized database. In this way, the recommendation engine can identify relevant product attributes and recommend relevant products, which will also increase your profits.
Integrations Made Easy
In the traditional model, product information is confined to silos — isolated from accounting, ERPs, logistics, warehouse, storage, or any other eCommerce solutions. The result is complications, since product information forms the basis of all eCommerce-related technologies.
What can PIM do for you?
It ensures that product information is synchronized between ERPs, inventory management systems, warehouse management systems, and CRMs. By easily integrating the systems, the systems are able to exchange data seamlessly using APIs, and the efficiency of each platform gets enhanced.
Reducing the Time to Market Products
Managing data manually is tedious. Business managers often prepare product datasheets a single time, ignoring future revisions while the outdated data continues to appear.
What can PIM do for you?
PIMS ensures the data on the products is always up-to-date. Changes are automatically incorporated into the datasheets whenever a new update to the database is made. Automated updating assures that product data is up to date prior to going to market for sale.
Optimize Your SEO Better
An SEO strategy is worthless with product information that is disorganized, duplicated, incomplete, and siloed. In spite of how thorough the keyword research is performed, the SEO campaign may not succeed — leaving the website with low rankings.
What can PIM do for you?
Organizing products with a product information management system allows them to be categorized according to their features. It also eliminates duplicate content, allows you to edit meta tags for each product, and eliminates content gaps throughout the product page. This enables the development and implementation of SEO strategies focused on products, which in turn boosts Google rankings.
Conclusion:
PIM eCommerce software provides a central database for managing and refining product data. With eCommerce businesses' scalability in mind, PIMs are a good investment.
In this blog, we discussed every detail about PIMS in order to help your business grow successfully. In order to get started, there is one such tool you can rely on is CatalogsBuilder.
Furthermore, you have the option of getting this tool customized as per your requirements based on your business needs. Regardless of which option you go with, PIM investments will be beneficial to your business.
Contact one of our specialists or send us an email at info@catalogsbuilder.com if you still have questions.
Harsh
What factors should a business consider when choosing a PIM system, and how can it be customized to specific business needs?