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How to increase the ROI of PIM to maximize your success

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How to increase the ROI of PIM to maximize your success

In the relentless competition for consumer attention, companies face the challenge of managing large volumes of product data. The adoption of Product Information Management (PIM) system has become pivotal, providing operational efficiency and significant Return on Investment (ROI). The global PIM market is projected to grow from $3.01 billion in 2022 to $12.91 billion by 2029, at a CAGR of 23.1% — a testament to the solution's ability to deliver tangible results.

According to Forrester, “...brand manufacturers, retailers, and distributors across B2B and B2C need to deliver detailed and accurate product information on digital shelves to positively impact their customer experience (CX) and drive new business value.” Businesses are at a crossroads where data quality is more significant than ever. Each piece of data can impact sales, customer experience, brand reputation, and ultimately ROI. So, having accurate, compelling, and up-to-date product information is non-negotiable.

In this blog, we’ll delve into the importance of measuring ROI, the benefits of PIM, and why it’s key to improve your bottom line, through cost savings, increased profits, or enhanced customer satisfaction.

How does a Product Information Management (PIM) system help improve ROI?

Delivering the most relevant information to your customers at the right time, in the right place, is the best strategy to convert prospects into buyers. With a PIM system, you can elevate automation, increase data precision, and ensure personalization while redefining your digital presence. By implementing PIM, you create a centralized data repository to organize, collect, and distribute product information — which is essential in a data-driven world.

Let's look at the specific ways a PIM system contributes to a higher ROI:

  • Increased conversion rates
    With only 2.17% of ecommerce visits resulting in purchases, the challenge lies in converting the digital footprint into actual transactions. PIM can help increase conversion rates by ensuring potential customers find the products they’re looking for and have access to all the information they need to make a purchase decision. This accuracy and consistency directly impact customer trust. Moreover, PIM makes it easier to find products through search functionalities and Google indexing, which helps increase both conversion rate and average order value.
  • Time and cost savings
    To boost operational efficiency and maximize ROI, businesses must actively streamline and automate processes. PIM, with its integrated workflow management and AI capabilities, is vital in this effort, significantly reducing time-to-market and enabling cost savings. For instance, Kika/Leiner, an international chain of furniture stores, was able to cut time to market from 72 hours to 30 to 60 minutes using Contentserv’s PIM. Similarly, Lacoste experienced a significant reduction in the time required to create new attributes, decreasing from several months to only 2 or 3 weeks.
  • Reduced search abandonment
    82% of consumers avoid websites where they’ve experienced search difficulties in the past. This is a reminder that when you sell online, you need clean data and clear product categories, as well as good navigation to ensure the best browsing experience. With advanced search functionalities and channel-ready content distribution, PIM minimizes search abandonment rates — ensuring buyers find the information they seek to complete the purchasing cycle. This leads to an enhanced ROI as businesses retain and attract customers through a streamlined and informative search experience.
  • Fewer returns
    Ever sent a product back because it wasn't what you expected? You're not alone – a whopping 50% of shoppers have been there. Reducing the return rate can highly impact the bottom line as this is often caused by customers not understanding the product they’re buying. With PIM, you can minimize returns by providing high-quality and enriched product descriptions. Achieve unmatched product data precision with AI-driven content generation and easily customize PIM workflows. And with validation and permissions settings, you can wave goodbye to errors and inconsistencies in your product data.
  • Enhanced customer experience
    86% of consumers are willing to pay for a better customer experience (CX). That explains why companies that lead in customer experience outperform laggards by nearly 80%. The consolidation of product information in a single repository is the foundation of excellent CX. Unstructured data goes into the PIM system and turns into consistent, accurate, and personalized product information ready to be shared across various channels. This enriched data becomes the driving force behind tailored customer journeys, quick product launches, and attractive campaigns, redefining traditional data management and propelling ROI to unprecedented levels.
Ready to explore PIM's potential in our ROI of PIM Masterclass?

Importance of measuring ROI

The demand for PIM software is one of the fastest growing trends within the tech market right now. However, as with any investment, you need a clear understanding of how PIM can impact your organization. Calculating the ROI of PIM goes beyond financial metrics to explore efficiency gains and enhanced data management, making PIM a multifaceted tool for maximizing revenue through several ways:

  • Informed decision-making
    ROI insights from PIM implementation act as a compass for informed decision-making, enabling businesses to fine-tune ecommerce tactics for optimal outcomes. Robust reporting and analytics capabilities allow companies to gain insights into their product data, including which products are selling well and which ones need improvement. This information can then be used to make data-driven decisions and enhance product offerings. PIM also improves cross-departmental collaboration and decision-making by providing a centralized platform for seamless data sharing.
  • Performance evaluation
    Assessing the ROI through performance evaluation is vital as it quantifies the impact of PIM on crucial business aspects. PIM impacts performance by streamlining workflows, improving data accuracy, and enhancing collaboration, leading to more efficient marketing campaigns, optimized website functionality, and successful product launches. The productivity boost PIM provides varies based on factors like existing product management practices and specific channel demands. By analyzing these metrics consistently, you can decide where performance can be improved.
  • Optimized resource allocation
    By understanding which initiatives generate the highest returns, you can strategically reallocate resources. The first step is to know what resources you have, how much they cost, how they are used, and what outcomes they produce. The next step is to prioritize your activities based on their alignment with your strategic objectives and their impact on your bottom line. This approach fosters adaptability, ensuring resources are coordinated with your business priorities. It also helps recognize when to scale your PIM system as your business expands.
  • Profitable growth
    Navigating the challenge of achieving profitable growth, when roughly a quarter of companies face stagnation, involves leveraging ROI calculations. By measuring ROI, you can make informed decisions on which investments are worth pursuing and those to avoid. This ensures that growth is not merely an expansion of operations but a strategic and profitable evolution. Understanding the actual cost and profit implications of a PIM initiative enables you to pinpoint revenue opportunities, streamline operations, and strategically position your business for accelerated profit growth.

How to measure the ROI of a PIM system

PIM software has evolved significantly to meet dynamic business requirements and tackle complex use cases. It now offers advanced features such as flexible data modeling, product information quality, AI-supported content creation and optimization, contextualization, translation, and automated syndication. However, like any investment, before you can move forward confidently, you need to know if the ROI is worthwhile.

Computing for the ROI of any investment involves a simple equation:


While determining the cost of investment is relatively straightforward, evaluating the benefits can be more complex. Measuring the ROI of a PIM system involves a systematic approach to assess the efficiency gains and financial impact of its implementation.

To determine the ROI of your PIM, proceed as follows:

  • Add up costs: Start by creating a comprehensive breakdown of all expenses related to the PIM implementation. This includes licensing, implementation, customization (if applicable), training, and ongoing maintenance costs.
  • Quantify benefits: Evaluate all tangible and intangible benefits (e.g., improved data accuracy, time savings, shorter time-to-market, revenue increases).
  • Calculate ROI: Insert the calculated figures into the above formula (revenue - cost) / cost).
  • Define evaluation period: Set a specific timeframe for your ROI assessment to provide insight into both short-term gains and long-term impact.
  • Risks and opportunity costs: Factor in potential risks, lost profits, or benefits associated with not implementing the PIM system. This assessment provides a holistic understanding of the investment landscape.
  • Monitor: Conduct periodic assessments to ensure ongoing ROI. Track KPIs regularly and make adjustments to the PIM system or processes if needed. This ensures continuous optimization and maximization of returns.

PIM has emerged as one of the most effective ways of managing data, enriching product information, and building strong relationships with customers. But with the multitude of capabilities that PIM offers, grasping and quantifying the benefits it brings to your organization can be challenging.

PIM investments have great ROI. You just need to know where to look! That's where our ROI of PIM Masterclass proves invaluable. Our experts Alexander Tiberius Semrl, Managing Director at Contentserv US and Tom Sieger, Managing Partner at CSS Commerce, will support you on the way to increasing the ROI of PIM. Gain insights into the industry metrics, calculate your estimated return, and unlock your potential with the CSS Commerce PIM calculator.

Ready to explore PIM's potential in our ROI of PIM Masterclass?

Discover its impact on cost reduction, process optimization, revenue growth, and more.