How Retailers are Utilizing Product Information Management to Optimize Business Results
By Space Coast Daily // September 5, 2022
Groundbreaking digital content and accurate product information have now become the order of the day in the business space. Retailers can now improve their product interactions and the digital engagement by customers by utilizing mobile apps, eCommerce, automated marketing strategies, and other digital tools.
To be able to do this, they have now created a centralized platform that acts as a means of management, collection, and promotion of all digital assets and product-related information. This has put Product Information Management on a much bigger scale, with more business owners realizing its glaring importance in eCommerce.
On a global scale, the PIM market received a market valuation of about $9.88 billion in 2020 and it is believed that the growth will be at least 3 times higher up to 2025. Irrespective of what kind of retailer you are- either B2B or B2C, you are bound to face growing online competition, pricing differences, product assortment proliferation, accurate and consistent merchandising, a proliferation of product assortment, findability or searchability of products, etc.
When this happens, you must be able to access complete and accurate data to help in making informed decisions regarding these challenges to improve the overall customer experience.
Fundamentally, the general idea among retailers is that there is a huge gap between the desires of their customers and the service they provide. Over 80% of online retail customers carry out extensive research online regarding the product before making a purchase. To this effect, quality product pages and digital content are absolutely important to attract customers and give retailers sustainability in sales.
Efficient Product Information Management (PIM) will solve a lot of the challenges listed above and offer these businesses a lot of benefits, some of which are listed below:
1. The centralization of all product information promotes consistency
Retail businesses on the come up usually put out thousands of products for the customers to find. Irrespective of the nature of the business, whether it is brick and mortar, online, or catalog, digital content and product information becomes the most important part of any product.
To put it simply, when customers search for products, they find product images, reviews, different colors or sizes of the product, user guides, product specifications, and so on. This means that this product information has to first be sold to the customer before the product itself. And so, a trusted and centralized PIM solution will help in efficiently managing all your product data in one central location rather than managing it in separate locations.
2. Utilization of multiple channels in the distribution of products results in product availability
The major factor in any surviving retail business is speed. The speed at which retailers can sell the right products to customers will determine the success of the retail business. By utilizing even more channels in the creation of brand impressions, retailers can now convert more potential customers into buyers and increase their overall revenue.
By using an effective PIM, they can also bring on new products and display the product information to customers through multiple channels whether online or physical, easily and quickly. This will help customers better find what they are looking for when they shop.
3. Boosting sales and confidence by improving customer experience
Whether it is an online or physical store, customers expect the brand to have a unified outlook and offer a quality customer experience across all platforms. This can be evident in the recent trend in the business space “buy the product online and pick it up in the store”. This places a level of expectation on brands by customers to be able to offer a unified experience all around. This is only possible with an efficient PIM system.
With an efficient PIM system, customers can now get access to all relevant product data across all business platforms. This data can be constantly updated and will contain detailed product information for customers. This will, in turn, improve the customer’s confidence in the product and the brand and reduce any reluctance that may exist when it comes to their decision-making process.
The result will be accelerated sales, higher conversion rates, etc. Your team members and sales customer service will also have access to this data through any channel and at any time.
4. Improved financial management
We have looked at the benefits of introducing a PIM system for your ecosystem and team, now we are going to analyze the financial benefits. Giving your team members the freedom to refocus on their main business as a result of the product sheet automation will significantly reduce the administration costs your company has to bear.
5. Better relationship with suppliers
If you still don’t yet run a PIM system, then chances are you are not aware of the complexities involved in running one. From receiving spreadsheets, documents, and product visuals from your suppliers, to creating a conducive work environment for your supplier to be comfortable sharing and receiving information.
This could be challenging for your team without the use of a PIM system and could take a ridiculous amount of time. However, with the centralization of the product sheets from your suppliers, your team can save a lot of time and resources and channel any excess to the management of the main business.
Also, as a result of the creation of a well-defined workflow and rules, you will be able to communicate all the information you need to your team in the quickest time possible. Your team will also not need to worry about the reliability of any information coming to them as the PIM system will ensure consistency.
In addition, you can improve the relationship with your supplier by creating a conducive work environment where little disputes are resolved amicably, and the atmosphere is one of trust and mutual benefits. This is important to ensure that the relationship with your supplier is long and prosperous, as well as having a positive impact on your sales and attitude towards work.
