In 1964, Bertram Gross coined the term “information overload” in his work, “The Managing of Organizations” while teaching Political Science at Hunter College.
In it, Gross defined this term as follows:
“Information overload occurs when the amount of input to a system exceeds its processing capacity. Decision makers have fairly limited cognitive processing capacity. Consequently, when information overload occurs, it is likely that a reduction in decision quality will occur.”
Additionally, the concept of information overload has been around since the 3rd & 4th century BCE with Ecclesiastes stating that “of making books there is no end.”
Peter Drucker, who many regard as the father of management theory, also stated his thoughts on information as so:
“The purpose of information is not knowledge. It is about being able to take the right action.”
Lastly, according to a study by Zenith in 2019, projected through 2021, worldwide media consumption across all mediums is expected to reach 495 minutes daily, which translates to over 8 hours of media consumption, per person, per day globally.
That number is astounding. Now think about all of the data, processing requirements, and human resources needed to manage all of this? Couple this with the exponential growth in eCommerce and the significant changes in consumer behavior. There’s never been more of a need to be able to efficiently and effectively manage all of this information.
Considering the above, we plan to map out the benefits of Product Information Management (PIM) and how to take full advantage to help sort through this chaotic information mountain we’re all climbing and come out on top.
Have any questions after this—reach out; this is what we do.
Who Needs a PIM System?
- Ecommerce & Product Managers—they need quality data for product optimizations to increase sales
- Data & Governance teams—they need to adhere to compliance requirements and track issues
- Marketers—they need to be able to optimize the entire customer journey across all touch points
- B2B Brands & B2C Retailers—they need the proper data to maximize relationships with partners and suppliers
What is a PIM System?
A product information management system is a solution that will help manage, enrich, and distribute product information to your product catalogs, sales, and eCommerce channels efficiently.
With a PIM solution, you can produce more engaging product experiences by providing your sales channels with all the information they need to sell your products—which essentially simplifies the process of creating compelling products for sales channels.
When should you consider investing in a PIM System?
Answer these questions:
- Do you want to increase the number of selling days for your products by getting them to market faster?
- Do you want to reduce costs by automating manual business processes and create a seamless flow of product information between systems?
- Do you want to increase conversion by having complete and consistent information across all touch points?
- Do you want to increase future flexibility and easily syndicate information to any 3rd party marketplace?
- Do you want to build long term trust in your brand and harmonize all product communication?
If you’ve answered yes to most of the above, you’re an excellent candidate for PIM.
Where would investing in a PIM system benefit your business?
Business Intelligence (BI)
The purpose of BI in eCommerce is to support decisions with past business intelligence and gain perspective based on those behaviours. Using structured, organized data, individuals at the CIO and CFO level can monitor and report on the effect that previous decisions had on the current state of the business. Businesses from large enterprises to small shops can use BI to scale, become more competitive, and hone in on the performance of their products, teams and campaigns.
Your product information and the effect that decisions have on your business can affect you in some very important ways, including:
- Driving revenue
- Mastering operational efficiency
- Pinpointing the cause of problems
Additionally, having an eCommerce dashboard to populate real-time data can be a source of eye-opening information on sales, margins, inventory, and marketing performance.
Customer Experience Design + Increased Profitability
PIM solutions drive conversion because the customer’s experience with a product is consistent throughout the entire sales process across social media, marketing, websites, and marketplaces, leading to increased brand messaging and customer loyalty, which are essential to eCommerce.
Regardless of how many products you manage, using a PIM solution offers one centralized tool, creating a consistent experience that boosts conversion from the point of stumbling upon a product on social media to taking the shopping journey to purchase it.
Why Implement a PIM System?
- Faster Time to Market: InRiver footwear client reduced their International Catalog Production time (written in 14 languages) from 28 to 3 Days
- Increased Average Order Values: According to Epsilon, 80% of consumers are more likely to make a purchase and increase their purchase value if brands offer them personalized experiences
- Global Scalability: PIM can easily tackle multicurrency and geo-localization, while pushing product content across everything—easily and efficiently all at once
According to Research and Markets, ”The Product Information Management Market was valued at USD 9.88 Billion in 2020, and it is projected to be worth USD 33.78 Billion by 2026, registering a CAGR of 23.3% during the forecast period (2021 - 2026)”
There’s a reason why this industry is growing at such velocity—because there’s a need for it.
The magic of PIM lies in its power. Here is how PIM is capable of bringing about such a positive impact.
How does a PIM System Work?
By Collecting Data:
- Collects data from databases, product feeds, ERPs, etc
- Cleans and interprets the data for catalog integrations
- Defines order between data sources
By Enriching Data
- Enhances product descriptions with emotional and technical information
- Groups product data to distribute through catalogs
- Translates product information across multiple languages
- Manages the product data lifecycle across workflows and audits
- Controls the quality of data in a single place
By Distributing Data
- Manages multiple sales and marketing channels
- Allows specificity in content distribution across channels and catalogs
Right now, at this moment, you more than likely have the ability to find almost any particular piece of information you want, instantly, at your fingertips. As the world continues to transition into a more globally connected, living and breathing digital machine, the amount of data will only increase, and in kind, the audiences that we’ll be able to work with, and for.
Given this state of the nation, investing in PIM is a worthwhile investment, and if you’re in the market to explore these new possibilities, we’re glad to talk to you about how to leverage them.