Unlike eCommerce systems that are widely recognized and adopted globally, awareness about product information management solutions (PIM), and how a best-of-breed PIM solution can help small and mid-sized companies was still growing till about a year ago. That gap in awareness has exploded today, with physical channels practically evaporating more and more companies (including small and medium-sized businesses) are looking for affordable PIMs for eCommerce to stay relevant in the market.
According to an AT Kearney study, poorly maintained and synchronized product information can cause companies to lose about 3.5% of their sales each year, spend 25 minutes per SKU per year manually cleansing out-of-sync product information, and spend between $40 to $400 per erroneous invoice to reconcile more than half of the invoices they generate each year.
The pandemic forced many businesses to slow down or shut operations altogether. On the other hand, digitized retailers were prepared to move fast, from remote working to scaling multichannel efforts they scaled operations quickly. Ecommerce for everything is the new normal and for retail businesses still plagued with bad data and legacy systems, this is nothing short of a rude wakeup call.
B2B manufacturers and B2C brands that relied solely on retail channel partners find themselves with almost no visibility and control over the product life cycle. Businesses that previously did not have their own eCommerce site or direct-to-consumer models are rushing to develop digital shelf capabilities to stay relevant and competitive with their customer base. PepsiCo launched not one but two direct-to-consumer websites in May where shoppers can order an assortment of PepsiCo’s trusted and loved food and beverage brands. The best part? They offer a two-day delivery time. This example is a clear sign of the times;
- Investment in technology and data management tools will differentiate brands online
- Syndication to eCommerce platforms and digital channels is key to immersive commerce and contextual customer experience
- More and more consumers are using eCommerce, and they need online alternatives to find and purchase the products they love quickly and easily
To meet rising demand and to put your product in front of the consumer where they shop, companies have to execute a watertight digital commerce strategy. PIM is a solid foundational building block to achieve this future. Let’s delve deeper into the reasons why successful eCommerce companies are already using PIM:
Poor product data management
Manual management of product information is counterproductive for retailers and costs a fortune in internal costs. Between sales, marketing, product management, manufacturing and other stakeholders accessing siloed spreadsheets, collaboration and productivity are far-away dreams. Other problems like high product returns, manual errors, customer complaints, marketplaces not hesitating to pull your entire product catalog from shelves if they aren’t optimized to their custom feed specifications, cart abandonment, incorrect prices, missing images, wrong dimensions to name a few. Now imagine launching a new product in a new channel using a legacy model. Legacy systems create data chaos within your organization, they make it difficult to create, manage, and distribute product data, especially if the catalog is large and if there are multiple suppliers who provide data. A modern PIM solution is purpose-built to offer you a single source of truth for product data automating time consuming and redundant tasks so you get internal productivity, data accuracy, and high-quality product information. The tangible benefits of these are cost savings and revenue gains.
To achieve an ‘eCommerce everything’ model retailers need to eliminate data inconsistencies and poor data syndication, they should be able to scale SKU assortments, expand digital channels easily and provide exceptional customer experiences, all with low operating costs. A PIM solution does all this and more.
Delay in time to market
We’re living in a time when online sales are surging, creating a ripe opportunity for businesses to turnaround rapidly to put products in front of a consumer. This is a crucial competitive advantage for eCommerce success today. Relying on manual or custom-built apps to manage high volumes can lead to a quick death. Customers want real-time product information, detailed titles and descriptions, rich media in the form of multiple images and video, stock availability, color options, size information, reviews and they want to consume this information seamlessly on at least three different touchpoints.
A PIM solution can drastically cut time wasted on duplicating efforts and processes each time you have to launch a new product or enter a new market. Imagine what this means for a growing eCommerce business; an expanding catalog is a key component of growing revenue and increasing market share. PIMs facilitate this transformation by streamlining data management processes and creating agile workflows that feed clean data into marketplaces and other sales channels. A PIM can easily be integrated with a company’s ERP system and simplify product data publishing to eCommerce platforms like BigCommerce, Magento, Shopify, Salesforce and to other digital channels like Amazon, ebay, Walmart, Google, Facebook, etc.
Poor digital presence, poor customer experience, drop in conversions
Shifts in customer buying behavior have happened overnight, leaving no option for businesses but to create a strong online presence. Add to this the pressure of beating competition that is more often than not just a click away.
PIM and optimized product data feeds are essential to both; creating immersive eCommerce environments and improving operational excellence. Retailers need to think about how these two components are crucial to customer retention and boosting sales.
Is it worth the effort and investment to explore PIM further? To make this decision simpler, we created a list of questions to help you understand the features and advantages of PIM better. If you answered yes to the questions below, we can help you close the gaps in your product data management, create a scalable eCommerce and grow sales.
Are you looking to:
- Improve how product data is organized, managed, and shared to grow eCommerce sales?
- Eliminate duplicate product data efforts?
- Lower cost & complexity of managing product data?
- Enable faster product updates and syndication to eCommerce platforms and digital channels?
- Generate reliable data feeds to internal enterprise systems?
- Enhance product content by adding categories, tech specs, features, benefits, digital assets, SEO info, etc.?
- Achieve consistency acrossn sales channels – products, content, prices, and inventory?
- Eliminate the hassles of managing product data in tens of excel spreadsheets, or in clunky legacy systems?