In my last post, I discussed how effective product information management can enable enterprises to reduce costs. Because product data is required by many business functions and used for a variety of purposes, most organizations have product information spread across numerous information systems. This approach to product information management creates duplicative and inefficient work processes and generates excessive costs.
To manage product-related data more efficiently, a growing number of companies are turning to dedicated software applications to streamline product information management processes and tasks. These technologies are typically called product information management systems (PIMS), and they provide a central repository and a defined structure for product data. In most cases, these applications are specifically designed to integrate with other software systems that require product information. As I wrote in my last post, a robust PIMS can enable an enterprise to achieve significant savings in data management and maintenance costs, catalog creation costs, and translation costs.
By streamlining the management of product information, a PIMS can also enable enterprises to expand and improve their demand generation programs on a cost-effective basis. A recent research study titled ROI of Product Data for Multichannel Commerce by Heiler Software AG and Stuttgart Media University (the ROI of PIM Study) shows how a PIMS can impact demand generation efforts.
- Greater use of product catalogs—On average, manufacturing companies with a PIMS publish 20 catalogs per year, while the average annual number of catalogs for manufacturers without a PIMS is 2.5. On average, retailers with a PIMS also publish 20 catalogs per year, while those without a PIMS average only 12.5 catalogs per year.
- More multilingual marketing—On average, manufacturing companies with a PIMS provide product descriptions in 19 languages, while those without a PIMS offer product descriptions in only four languages. In addition, manufacturing companies with a PIMS plan to add an average of eight more languages over the next three years, while firms without a PIMS plan to add only one new language over the same period.
A PIMS will also enhance multichannel marketing efforts by facilitating the reuse of product information across multiple marketing channels. The ROI of PIM Study found that 89% of manufacturing companies with a PIMS use the same product descriptions in print catalogs and online, while only 50% of firms without a PIMS use the same product descriptions in both channels.
These research findings demonstrate that product information management systems can significantly enhance marketing efforts. For enterprises that operate globally, a PIMS can be particularly valuable because it provides direct support for multilingual marketing and other forms of content localization.
This post was previously published on the ADAM Software blog. . .
