PIM centralises product information in one place and utilises automation. You receive consistent product information across all channels, enhancing the customer experience. How should you prepare for the implementation of PIM, what does it require, and how can success be measured?

PIM (Product Information Management) is a system developed for managing product information and its quality. It is one of the keys to e-commerce success and the master of quality and rich marketing data. PIM saves time and money and makes managing growing product information easy and efficient to handle. 

Typically, the need for PIM arises when product information is scattered and as the number of products and publication channels grows, its management and distribution become increasingly burdensome.

According to Akeneo's research, PIM increases conversion by up to 3%, reduces customer returns by up to 40%, increases productivity by 50%, and accelerates the time to market for new products by 80% faster.

50% Employee productivity improves	80%  Time-to-market for products is accelerated
3% Growth in conversion	40% Fewer customer returns

This article succinctly covers the start of a project related to changes in product information management and the measurement of success as well as the costs that may arise. Contact us if you have any questions about the topic!

How to Calculate the Profitability of a PIM Investment

Is there a need for product information management being considered in your company? Explore the ABC list for preparing for a PIM acquisition, which summarises the essential elements for successful preparation. 

You can also download the market's most exciting PIM guide here to learn more about whether a PIM system is the right solution for your company. 

To determine the profitability of the investment, initially consider at least the following:

• How is product information currently maintained?

• To whom is product information shared? Also consider the divisions internally and with partners.

• In what format is the product information, can it be found in spreadsheets and supplier emails?

• In how many languages is the product information desired to be published now and in the future?

• How often are there new products or product updates?

ROI – How Much Does Using PIM Reduce Costs?

Once the basic information for determining the profitability of the investment is clarified, next map out the current costs. Use concrete metrics so you can later assess the savings brought by PIM.

These six questions can help you assess current costs:

1. Product Information Maintenance: What do the current product information maintenance costs consist of? Calculate the resources used and their costs (working hours and systems).

2. New Products: How quickly can a new product be launched in all channels?

3. Error Correction: How quickly can incorrect information now be corrected in different publication channels, and how much do delays cause additional costs such as customer returns?

4. SEO Visibility: Are generic product information from suppliers used, limiting the full utilisation of search engine optimisation?

5. Stock Turnover: Are there currently effective ways for clearance product sales? What kind of costs do products left in stock cause, for instance, annually?

6. Language Versioning: Where and how are translations done? How are incorrect translations updated and validated, and what costs does this incur? Also calculate the time and resources for creating and translating various PDFs and print materials.

You get products to market faster when marketing has access to rich product information and translations into different languages even before the product has arrived in stock. Product variations also allow variants to be published quickly in sales channels.

Quality product information requires good translations. PIM does not automate translations, as human translation is overwhelmingly the best quality. However, translations can be directly managed in PIM, and the system also offers excellent opportunities to automate and speed up translation processes. Additionally, translations can be pre-configured for desired attributes, so their information doesn’t need to be translated again in the future.

In addition to measurable savings, more difficult-to-measure factors include the uniformity of product information, savings from the correctness of data, and brand strengthening. However, they can bring significant positive impacts.

PIM Suits Us! What’s Next for the Project?

Once a decision has been made on the development of product information management, the current situation is mapped, and the development of the product information process begins, as well as seeking solutions to potential problems. 

The project consists of definitions, the implementation and configuration of the PIM system, potential integration and web-to-print implementations, as well as client training and solution testing. As products are established in the PIM system, enrichment work also begins. This is typically the most laborious process of the implementation, especially if rich product information has been scattered.

During the definition phase, the design of the product information model begins, resulting in a description of the solution and the product information model. 

The definitions consist of half-day workshops, typically requiring at least three. In the definitions, documentation of the implementation is done in collaboration with the client, and the product information model to be established in the PIM system is mapped out.

Formation of Costs in a PIM Project

PIM can be a fully customised solution or a ready-made package that operates as a SaaS service. A ready-made PIM system can be accessed merely with server costs. The best solution is considered during the definition phase or before the start of the project. 

Definitions typically consist of three half-day workshops and comprehensive documentation that describes the client's PIM solution at a detailed level.

Implementation is carried out based on the definitions, including the configuration and installations of the PIM system.

The cost of integrations depends on their complexity. For example, Akeneo offers ready-made plugins for linking PIM to common online store fields.

Training for using PIM and possible add-ons, such as web-to-print, takes about half a day. Training packages suitable for different target groups (e.g., marketing, product managers, PIM main users) can be created at the client’s request. 

Testing is done based on the implementation. All implemented integrations, defined logics, and their functionality are tested. Testing is conducted with the client and possible other parties involved.

In Short:

A PIM project can be completed in as little as three months. Larger projects can take up to a year when there is a large number of integrations, data, and channels involved.

A good time to implement a PIM system is when setting up or renewing an online store. Transitioning is also beneficial when wanting to improve customer experience and competitive edge with quality marketing data and speeding up the company’s products to market.

The most important aspect of preparing for the project is engaging all stakeholders related to product information management to participate, ensuring successful implementation and maximising the benefit from the PIM system.

Watch the recording of the PIM implementation project webinar.