PIM centralises product information in one location and utilises automation. You receive consistent product information across all channels, enhancing the customer experience. How should one 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 high-quality, rich marketing data. PIM saves time and money, making the management of growing product information easy and efficient. 

Typically, the need for PIM arises when product information is scattered, and as product quantities and publication channels increase, 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 introduction of new products to sales channels by 80%.

This article briefly covers the initiation of a project related to product information management change and the measurement of its success, as well as details the costs incurred. Contact us if you have any questions on the topic!

How to Calculate the Profitability of a PIM Investment

Is your company considering the need for product information management? Check out the PIM procurement ABC - tip list, which summarises the essential elements for successful preparation. 

You can also download the market's best PIM guide here to determine whether a PIM system is the right solution for your company. 

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

• How is product information currently maintained?

• To whom is product information shared? Consider both internal and partner divisions.

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

• In how many languages would you like to publish product information now and in the future?

• How often do new products or product updates come?

ROI – How Much Does PIM Usage Reduce Costs?

Once the basic information for assessing the investment's profitability is clear, next chart the current costs. Use concrete metrics to later assess the savings brought by PIM.

These six questions will help you evaluate current costs:

1. Product Information Maintenance: What are the current costs of maintaining product information? Calculate the resources used and their costs (man-hours and systems)

2. New Products: How quickly can a new product be brought to market across all channels?

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

4. SEO Visibility: Are generic product details from suppliers used, preventing full utilisation of search engine optimisation?

5. Inventory Turnover: Are there currently effective ways, for example, to manage clearance sales? What costs do unsold products cause in the warehouse, for example, annually?

6. Language Version Control: Where and how are translations made? How is the updating and validation of incorrect translations done and what costs does it incur? Calculate also the time and resources for producing and translating various pdf and print materials.

Get products to market faster when marketing has access to rich product information and translations into different languages even before the product arrives in stock. With product variations, you can also quickly get variants into publication channels.

High-quality product information requires excellent translations. PIM does not automate translations, as human translation is by far the best in quality. However, translations can be handled directly in PIM and the system also offers good opportunities to automate and speed up the translation processes. Additionally, desired attributes can be pre-configured with translations, so their information does not need to be translated subsequently.

 In addition to measurable savings, more difficult-to-measure factors include the uniformity of product information, the savings brought by correct data, and brand strengthening. Nonetheless, these may bring significant positive impacts.

PIM is Right for Us! How Does the Project Continue?

Once the decision has been made to develop product information management, assess the current situation and start considering the development of the product information process and finding solutions to potential problem areas. 

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

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

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

Formation of PIM Project Costs

PIM can be a fully customised solution or a ready package operating as a SaaS service. You can access the ready PIM system with just the server cost. The best solution is considered during the definition phase or before the project begins. 

Definitions typically consist of three half-day workshops and comprehensive documentation that describes the customer’s PIM solution in detail.

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

Integration costs depend on their complexity. For example, Akeneo offers ready-made plugins for integrating PIM with the most common e-commerce platforms.

Training in the use of PIM, as well as any additional components like web-to-print, takes about half a day. Training packages suitable for different target groups (such as marketing, product managers, PIM key users) can be created at the client's request. 

Testing is carried out based on the implementation. All implemented integrations and defined logics and their functionalities are tested. Testing is done together with the customer and any other parties involved.

In Short:

A PIM project can last as little as three months. Larger projects can take up to a year when the number of integrations, data, and channels is large.

A good time for PIM system implementation is when an e-commerce site is being established or revamped. Transfer is also recommended when you want to improve the customer experience and competitive advantage with high-quality marketing data and accelerate the company's product-to-market speed.

The most important aspect of project preparation is to commit all stakeholders involved in product information management to the project to ensure successful implementation and to fully leverage the PIM system.

Watch the PIM Implementation Project Webinar Recording.