Running a business today is becoming harder and harder.
With the number of distribution channels increasing, companies need an online database tool to keep track of all the information regarding their products, their sales and all the mediums they are using to sell them.
This is where product information management or PIM comes in.
What is a product information management software?
Consider a modern business where it there are not few but many distribution channels. A distribution channel is a path or medium used by a business entity to provide its goods and services to its end consumer. It includes wholesalers, retailers, and e-commerce web pages.
So now that every business has many of these channels, keeping track of all the product data can be tough. With database management one of the key cornerstones on which businesses are now running, product information management is also imperative today.
It is the process through which information about products a company is selling is collected and collated into actionable intelligence that can be then be used by management to make decisions. In other words, it’s product data that can be used by trading partners and other stakeholders to increase profits and grow sales.
Now all kinds of data today have their corresponding tools and information management software. Product information management is no different as software can be used to track and use data easily from one single place.
The 7 Ps of Success and PIM
PIM is important and there is no doubt about it. Recently one our team members caught hold of something that rings true for PIM as well
It’s known as seven Ps to success and here’s how it goes:
Proper Prior Planning Prevents Pitiable Poor Performance
One of the major benefits of having a PIM software in your business is that it helps you accentuate your sales performance, increase profits and above all else, brings coherence to your planning performance.
PIM Software have analysis and reaction functionality which means you can easily go through your product data, compare prices, spot trends and then plan accordingly.
Imagine having a software like this that allows your managers to make decisions in real time to push sales of products that have negative impact whereas monitoring products that are turning in profits.
Let’s look at the many benefits of using PIM software.
For e-commerce sellers, losing a customer is way worse than someone selling in real world. Why?
Because for e-commerce customers, switching to another website selling same items is relatively simple task.
When it comes to online shopping, customers are like cars that are being driven around on your website. Without any proper guidance or map, they are going to get confused and get lost. And once they get stuck on your website, they will eventually move to your competitors’ site.
Having a product information management software helps you map all your products, their prices and other details on a single screen. This means that you can include your web analytics and see how prices are affecting online purchase behavior. Now seeing this, you can easily manipulate how to price your products in real time to create more sales.
For instance, if winter is fast approaching, using a PIM software, a marketing manager can set up prices to increase sales on summer clothing line to get them off the website. This means discounts and end of season sales.
Efficiency in data management
Did you know that 50% of organizations selling products will be using latest PIM systems that are solely dedicated towards their product processes and offering high quality experiences by 2021 (Ventana Research).
Having a powerful PIM software in your organization allows you to create a single repository of all the data you collect, manage and use. Here you can enrich your current product information, create better catalog and share access to it with your sales and marketing teams along with other stakeholders.
On a single dashboard, a marketing manager can learn a lot about buying consumers’ buying behaviors, whereas a pricing manager can work out how to attract customers through attractive pricing.
Decrease product returns
One of the most common reasons why customers return products is when they don’t have complete information. Mismanagement of product information leads to incorrect and incomplete details, which in turn causes product returns.
This in turn increase overheads and affects future sales. With PIM Software companies can reduce their return rates by ensuring data errors are reduced. Through an efficient PIM software, you can easily place a proper data validation process that will make sure that accurate product information is used every time.
Boost team productivity
To ensure every customer that lands on your website becomes a buyer, the product team works hard. But without a proper PIM software, it wouldn’t be easy for them as they will be going through numerous programs, different stakeholders will be sharing information between each other and they will simply end up doing tedious things all over again and again.
And with ever changing dynamics and pricing, your team needs an interactive platform that helps them track everything when it comes to products and pricing on your website.
With PIM, you can automate almost all your manual activities so that all members of your team can do their job more effectively.
They work with everything!
A great PIM software allows you to flexibly integrate it with other tools used in your organization. Its API is designed to easily work with your customer relationship management software, Business intelligence tools and other customer centric tools.
This fosters an environment where there is coherent communication among other business systems and different teams.
Fact of the matter is that you should already have a PIM software in your ecommerce business. And you should probably always have relevant market pricing data to go with it. That’s where we can help you. Our team can guide you how you can start pricing effectively. Sniffie is integratable to almost any product management or resource planning software. Just contact us and let’s have a chat on how we could make your business better.