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:
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 The common complaints about a product return are incorrect or outdated product description, the difference in online and shelf price and product received is unlike the product advertised.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.