Product Information Management is used as a software solution for the central storage, management and distribution of product data. The successful integration of a PIM solution is therefore also beneficial for small and medium-sized companies that pursue an omnichannel strategy and market their products via websites, online shops, marketplaces and/or at the stationary point of sale. In this context, PIM systems are also beneficial for retailers who have to manage product data from different retailers and suppliers and synchronize it in the correct format for the different output channels.
How does PIM support small and medium-sized businesses?
For a long time, many small and medium-sized companies could not afford the “luxury” of a PIM solution. In addition to the higher costs of purchasing such a software solution, the integration into the existing IT infrastructure also took a lot of time.
“Markets and Markets estimates the global PIM market size is expected to grow from USD 9.0 billion in 2020 to USD 16.0 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 12.2% the forecast period. The major factors driving the growth of the PIM industry include rising demand for PIM solution from flourishing eCommerce industry and increasing need to offering enhanced customer services.”
In today’s digital age, characterized by numerous digital customer touchpoints, even small manufacturers and retailers have thousands of items in their range that are difficult to manage manually. The good news: The booming market for digital solutions enables companies of all sizes and in all industries to benefit from the advantages of a PIM system, which enables all disciplines in omnichannel commerce to be sustainably optimized:
-Centralized product information
-Optimal output of high-quality product information across multiple channels
-Uniform information exchange with suppliers, dealers and other stakeholders
-More efficient workflows and increased productivity for teams across the entire process chain
-Optimal output of high-quality product information across multiple channels
-Uniform information exchange with suppliers, dealers and other stakeholders
-More efficient workflows and increased productivity for teams across the entire process chain
From the start of this decade, there are around 2.1 billion global digital buyers and the trend continues to be going sturdy in the next years.
What should you consider when selecting PIM software?
Over 27% of the world’s population regularly shops digitally. At the same time, digital and mobile wallets are the most popular payment method in 2020, accounting for 45% of the payment options used worldwide in e-commerce. These are just a few of the key figures that underline the rapid growth of online shops, marketplaces and other digital marketing and sales platforms.
For companies, this growth means more dynamism and responsibility. SMEs in particular who want to consolidate their position in the market and not be left behind must keep up with the constant changes and developments in their industries. However, the PIM market is becoming increasingly global, so there is an almost endless number of PIM providers with the corresponding software to choose from. It has therefore become very difficult to find the optimal PIM solution for your own company. However, before a final decision is made, it should be clearly defined which essential functions a PIM solution must have:
- Ease of use: The switch from outdated Excel spreadsheets to modern cloud software should simplify internal and external processes. The PIM software should therefore integrate seamlessly into existing IT systems (e.g. ERP, CRM, DAM) and be easy to use for efficient management of product data. It should have an intuitive user interface with clear navigation.
- Faster capture of product data: Tailor-made PIM systems allow technically seamless capture and storage of product data from a wide variety of data sources in a central location (single source of truth). This approach makes it possible to centrally manage digital assets such as images, videos or catalogs.
- Content syndication: A key benefit of PIM systems is the ability to deliver consistent and complete product information to multiple different output channels, which is a prerequisite for seamless multi-channel communication. It is therefore important to pay particular attention to how the software can help the company execute simultaneously pursued output strategies.
- Costs: The cost factor is a decisive criterion when choosing the right PIM provider. Depending on the range of functions, the license model (on-premises vs. SaaS) and the number of users, the usual market prices for a PIM solution are between €500 and €5,000 per month (source: Capterra and G2). And even if each individual PIM solution advertises very individual additional functions, the actual purpose always remains the same. A more expensive software is therefore not automatically the better product. An optimal PIM system provides all the important basic functions while at the same time being reasonably priced. Only pay for functions that you really need for your business case. Reference reports from your industry are a good source to get an idea of which functions are relevant for you. Also make sure that your selected license model scales with your growth plans.
- Customer support: When integrating and using PIM software, minor difficulties often arise at the beginning. Regardless of the size of the company, it can take a certain amount of time before using the software becomes routine. In such phases, it is not only important to have regular product updates, but also to have continuous user support that supports the company in all relevant processes. Therefore, make sure that service and support services are covered by a maintenance contract.
Small and medium-sized companies make their investments in their own online business carefully. Market developments show that PIM is becoming essential for future-oriented and competitive companies that want to increase their sales. However, deciding which PIM system meets all the relevant criteria and suits the dynamics of your own company remains a challenge. With the PIM solution from prodexa, SMEs are also able to create unforgettable product experiences for their customers and achieve ambitious business goals.
Find out about the advantages prodexa brings for your industry and your business model in a free and non-binding online demo.