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.