Product Information Management and ROI

Product Information Management and ROI

Processes and technologies aimed at managing information about products are referred to as Product Information Management. With the speedy growth of e-commerce and the fame of online stores, PIM is gaining importance. Availability of high-quality product information is essential as consumers devote more time exploring products online.

Questudio’s CatalogStudio PIM software works as the central repository. It helps create, manage and maintains all product information. CatalogStudio software consists of numerous modules which are suitable for enterprises and SMEs.

PIM directly impacts the revenue and cost of a company. The effects of PIM on returns on investment are:

Increases sales

Customers search product information across platforms before their purchase. Availability of accurate product information increases sales. It has been proved through studies that online conversion ratios can increase by up to 56% through PIM. PIM helps in cross-selling and up-selling. Retailers with PIM established a better relationship between products than those without PIM. PIM helps in lowering the uncertainty about products which results in higher purchases, in turn, resulting in higher sales.

Lowers maintenance cost

Product information system helps in reducing the search time and helps in retrieving the information faster. It helps to minimize the time required to edit a product information. The repetition of product entry is highly reduced. As it provides many tools for product validation, the number of errors is considerably minimized. It curtails the time spent on customer enquiries by presenting precise product information. Hence, companies spend less cost in maintaining PIM.

Reduces return rates

Product returns and grievances are a result of inaccurate product information. The common complaints about a product return are incorrect or outdated product description, the difference in online and shelf price and product received is unlike the product advertised. Recent studies state that consumers are cross-channel purchasers. It is essential to make sure the information about products available are accurate and up-to- date. PIM makes this possible through building a sole, reliable source of product information across channels. This, in turn, helps in lowering the rate of product returns, thus increasing the returns on investment.

Reduces Catalogue costs

Consumers in recent times, are in search of detailed information on products. The print catalog includes the details such as pictures, specifications and price of the products. Web catalogs provide additional benefits such as review of the products from customers who have already purchased the product, minute details about the look of the product can be viewed by zooming the product, and images of the product can be viewed from different angles and so on. These features cannot be accomplished in print catalogs. The cost incurred in printing catalogs is huge when compared to web catalogs. In addition, any change in the product information can be updated on a regular basis in the website whereas it is not possible to print catalogs for every update which incurs a huge cost.

Simplifies localization and translation cost

Localization and translation are vital for any business to expand into new markets. This involves changing languages, currencies, payment modes and so on according to the new market. Doing it manually involves considerable investment in time, labour and cost. PIM simplifies and speeds up the localization and translation process. Hence, increasing sales which in turn increases the return on investments.

Why Does a Company Need Catalog Management Software

To understand how a good catalog management software can help an organization, we take the case of a fictional online grocery story – Zimblybuy. Zimblybuy is considering whether it should invest in a catalog management system. They speak to a consultant who asks them to point out the issues they face in their business.

Situation #1

Just as in normal organizations, in e-Commerce organization too there are many departments and divisions; each of these tend to work within their own silos. Such independence leads to data being owned by different entities and stored in different ways. Such dispersion of data in the organization leads to misleading and, sometimes, conflicting information being presented to the customer.

At Zimblybuy, the Marketing division rolls out a Buy One Get One (BOGO) offer on a certain set of products. For this event, the division creates a new set of product images with the BOGO identifier on the image. On the day the campaign ends, these images are to be removed and replaced with images that do not contain the BOGO identifier. The Marketing team sends out an email to the Website team informing them that the campaign has ended; however, the Website team does not realize that this means the images have to be changed over. This leads to disgruntled customers who feel they did not get the discount they had expected. Such situations can be avoided by implementing a catalog management software, such as CatalogStudio. A catalog management software allows you to store product information centrally while giving different departments access to parts of the repository with which they work.

Situation #2

Zimblybuy wants to implement a rewards program that offers regular customers lower prices on purchases. The idea is to offer different programs to the customers who can choose to enroll in the program that best suits their needs. However, Zimblybuy also wants to show non-members the prices that premium members receive in an attempt to entice them to sign-up for the member programs. Catalog management, such as CatalogStudio, allows you to create buyer groups and implement prices specific to each group.

Situation #3

During the festive season, Zimblybuy stocks up on festival-specific items. The Marketing division decides to use printed catalogs as inserts in the local newspapers to promote the special items. A complete catalog management system, such as CatalogStudio, allows you to create print catalogs using their publishing tool PDFxPress. With a wide variety of templates to choose from, PDFxPress can reduce up to 90% effort towards creating a print catalog. Furthermore, the print catalog accesses the data and images from the same central repository as the website, so the customer gets a uniform experience.

A good catalog management system is a great enabler. Features such as maintaining category hierarchy, maintaining attributes for products, creating complex product-accessory relationships gives you the power to control your inventory better. With a proper system in place, an e-Commerce organization will be much more flexible and agile, allowing it to react to the market while ensuring that the customer experience is not compromised in any manner.

Seamlessly Integrate Product Information Management With Dealer Portals

The lack of consistent information about products is an extremely common and frustrating experience for online shoppers. Seen from a company’s point-of-view, given the short lifecycles of products, and the sheer volume of products on a website, it is difficult to create and maintain the data without using a mature PIM software. Product Information Management software makes it possible to maintain, harmonize and update the data centrally and remove the errors that tend to creep in through manual systems.

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Product Information Management is Key to Omnichannel Success

In times when customers are growing more demanding, and dictating the retail industry, an omnichannel approach allows businesses to keep up. Omnichannel retailing allows businesses to create more meaningful and more consistent customer experiences across every channel. The key to omnichannel success lies in managing business operations and integrating channels to streamline and enhance the customer journey.

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