This post was written by Casey Paxton, Content Marketing Manager at Akeneo.
If you’ve ever felt overwhelmed by the sheer volume of product data or frustrated by inconsistencies across your sales channels, you’re not alone. Managing product information efficiently is a common challenge for businesses of all sizes.
Enter the Product Information Management (PIM) system — a powerful tool designed to streamline the management of product data, ensuring accuracy, consistency, and easy access across all platforms.
Whether you're a large enterprise aiming to optimize your operations or seeking to enhance efficiency, a PIM system can be a game-changer in achieving your business goals. But with dozens of solutions on the market and a slew of technological jargon to wade through, how are you supposed to distinguish between them all?
Let’s take a look at some essential features to look for in a PIM system, the benefits it can bring to your organization, and tips for selecting the right solution to meet your unique needs.
What is PIM?
A Product Information Management (PIM) solution is a business application that provides a single place to collect, manage, and enrich your product information, create a product catalog, and distribute it to your sales, ecommerce, and marketing channels.
PIM systems are essential for businesses that handle a large volume of products and need to provide detailed, up-to-date product information to customers, suppliers, and partners.
What Makes a Good PIM?
Choosing the right PIM can be daunting, and the right PIM for you will depend entirely on your needs and pain points, which we’ll get to in a moment. But first, let’s take a look at a few common characteristics of a good PIM system you should keep an eye out for.
A good PIM system should:
- Centralize, organize, and optimize product information. At its very core, a PIM system should provide a centralized location for all product data, ensuring that it is organized, up to date, reliable, and easily accessible to all key stakeholders. A crucial part of this organization is establishing an effective product hierarchy and taxonomy that helps to organize products in a logical structure, aiding in better searchability and navigation, and allowing internal customers to find what they need quickly and easily. Equally important is the system's ability to validate data and maintain its cleanliness — ensuring that the information is accurate, consistent, and free of errors. Clean data not only enhances the reliability of the PIM system but also supports better decision-making, reduces the risk of costly mistakes, and improves the overall efficiency of the organization.
- Localize and contextualize product information. A good PIM system should enable businesses to localize and contextualize product information for different markets and customer segments, ensuring that product descriptions, specifications, and other details are relevant to the target audience.
- Activate the product record everywhere. Your PIM shouldn’t just centralize and house product information, but should also facilitate the activation of your product record across all sales and marketing channels, including ecommerce platforms, social media, marketplaces, and more.
- Be intuitive and user-friendly. The PIM system should allow users to navigate and manage product data without extensive training. A simple, clean interface can significantly improve productivity and reduce errors.
- Be cloud-based and composable. In today’s omnichannel and digital landscape, cloud-based PIM systems are the only solutions that offer the scalability, flexibility, and accessibility required to stay ahead of competition. Plus, a composable architecture allows businesses to integrate the PIM with other systems and tools seamlessly, which means more collaboration and efficiency.
- Improve internal operations. A good PIM streamlines internal operations by reducing manual data entry, eliminating redundancies, and enhancing collaboration among teams, which leads to faster time-to-market and better product management.
How to Choose the Right PIM for You
1. Identify your pain points
If you’ve already begun your search for a PIM system, then you may have already completed this step. But if not, it’s crucial that you do, as the features and functionality you look for in a PIM will be heavily influenced based on what specific challenges your organization is facing.
Common pain points include:
- Scattered, manually managed, redundant product information. Managing product information across multiple spreadsheets, databases, and systems can lead to inconsistencies and redundancy. This scattered approach makes it difficult to maintain accurate, up-to-date information, which can negatively impact customer trust and sales.
- Poor search and discovery capabilities. Customers expect to find what they’re looking for quickly and easily. If your current system does not support robust search and filtering options, it can frustrate customers and lead to lost sales.
- Siloed teams, technology, and communication. When product information is managed in silos, different teams may work with outdated or inconsistent data, leading to miscommunication and inefficiencies. Siloed systems and lack of integration can also hinder the flow of information.
- Slow time-to-market. Bringing new products to market quickly is crucial in a competitive environment. Manual processes and disjointed systems can slow down the product launch process, affecting your ability to respond to market demands.
- Inability to scale. As your business grows, so does the volume and complexity of your product data. Your current system may not be able to handle this increased load, leading to bottlenecks and inefficiencies.
- Poor product experiences that result in lost sales, unhappy customers, and high return rates. Customers rely on detailed and accurate product information to make informed purchasing decisions. If they don’t have easy access to this, the overall customer experience is deeply impacted, and they will often just turn to a competitor who can offer a complete, reliable product experience.
2. Identify the stakeholders
Choosing and implementing a PIM system is a decision that impacts various parts of your organization as well as external partners. Understanding and involving all relevant stakeholders early in the process ensures that the chosen PIM system meets the needs of everyone involved and integrates smoothly with existing processes.
Internal Stakeholders
- Marketing team. The marketing team relies heavily on accurate and up-to-date product information to create compelling content, campaigns, and advertisements. They use this data to craft product descriptions, promotional materials, and social media posts that attract and engage customers.
- IT department. The IT department plays a crucial role in the implementation and maintenance of the PIM system. They are responsible for ensuring that the system integrates seamlessly with existing technologies and infrastructure, such as ERP, CRM, and ecommerce platforms. Their input is vital for assessing the technical requirements, compatibility, and security aspects of the PIM system.
- Inventory management. The inventory management team needs accurate product data to keep track of stock levels, manage reordering, and forecast demand. A PIM system helps inventory managers to maintain accurate records and make informed decisions about inventory levels, reducing the risk of stockouts or overstock situations.
- Sales team. Sales representatives require detailed and precise product information to effectively communicate with customers and close deals. They need easy access to product specifications, pricing, availability, and other relevant details.
- Customer support teams. The product development and support teams need a centralized repository for all product-related data, including specifications, usage guidelines, and troubleshooting information.
- Ecommerce managers. As ecommerce managers oversee the online sales channels and are responsible for ensuring that product information is accurately represented on websites, marketplaces, and other digital platforms, they rely heavily on having accurate, up-to-date product information that would be housed in a PIM system.
External Stakeholders
- Suppliers. Suppliers provide the raw materials or finished products that your business sells, which is why they need access to your PIM system to provide accurate and timely product information, such as specifications, pricing, and availability.
- Retailers. Retailers are often the final link in the supply chain, directly interfacing with the end customer. They rely on accurate, consistent, and detailed product information to effectively market and sell products to consumers. A PIM system ensures that retailers receive the correct product data, including images, descriptions, pricing, and availability, which is essential for maintaining customer trust and satisfaction. By providing retailers with clean and organized product information, you enable them to offer a better shopping experience, reduce returns, and increase sales.
- Marketplaces. Third-party marketplaces are a critical channel for reaching a broad audience, and often have specific requirements for product data. A PIM system helps ensure that your product information meets each channel’s requirements, facilitating smooth listings and preventing delays or errors, and can help streamline the process of updating and managing product listings across multiple marketplaces, ensuring consistency and accuracy across all platforms.
- Distributors. Distributors play a key role in getting your products to market. They need access to accurate product information to effectively manage logistics, inventory, and sales. A PIM system provides distributors with the data they need to plan and execute distribution strategies, ensuring that products are delivered to customers on time and in good condition.
3. Identify existing technology ecosystem
Ensuring seamless integration with your existing tools and platforms will minimize disruption, enhance efficiency, and maximize the overall effectiveness of the PIM.
Start by creating a detailed inventory of all the systems, tools, and platforms currently used within your organization. This includes:
- Enterprise Resource Planning (ERP) systems
- Customer Relationship Management (CRM) systems
- Ecommerce platforms
- Content Management Systems (CMS)
- Digital Asset Management (DAM) systems
- Point of Sale (POS) systems
- Supply Chain Management (SCM) systems
The next step here would be to map out the data flow and dependencies between your systems. Understanding how product data moves through your technology stack, from creation and enrichment to distribution and use, will help identify key integration points for the PIM.
When evaluating potential PIM solutions, assess the vendor’s capabilities in terms of integration with existing systems. Look for the following:
- Pre-Built Connectors. Some PIM vendors offer pre-built connectors for popular ERP, CRM, ecommerce, and CMS platforms. These connectors can simplify the integration process and reduce implementation time.
- Customization Options. Evaluate the vendor’s ability to customize integrations to meet your specific requirements. This may include developing custom APIs or data connectors.
- Third-Party Integration Tools. Consider third-party integration tools that can facilitate data exchange between the PIM and your existing systems. These tools can provide additional flexibility and ease of use.
- Implementation Support. Ensure that the PIM vendor provides comprehensive implementation support — including technical assistance, training, and documentation — and ongoing maintenance after implementation.
4. Identify budget and timeline
Selecting and implementing a PIM system is a significant investment in your business' future. Establishing a clear budget and timeline is crucial to ensure a smooth implementation process and to avoid unforeseen costs or delays.
When planning your budget, it's important to consider the Total Cost of Ownership (TCO) of the PIM system. TCO includes all costs associated with the system over its entire lifecycle, not just the initial purchase price. Here are the key components to consider:
Licensing costs
- Software license. The cost of purchasing the PIM software, which may be a one-time fee or a recurring subscription.
- User licenses. Additional costs for user licenses if the pricing model is based on the number of users.
Implementation costs
- Consultation and planning. Fees for consulting services to help plan and design the PIM implementation.
- Customization. Costs associated with customizing the PIM system to meet your specific business needs.
- Integration. Expenses related to integrating the PIM with your existing systems (ERP, CRM, ecommerce platforms).
- Data migration. Costs for migrating existing product data into the new PIM system, including data cleansing and validation.
Training costs
- Initial training. Costs for initial training sessions to ensure your team can effectively use the new system.
- Ongoing training. Budget for ongoing training and support to accommodate new hires or updates to the system.
Maintenance and support costs
- Technical support. Fees for ongoing technical support from the PIM provider.
- System updates. Costs for updates and upgrades to the PIM system to ensure it stays current and functional.
- Maintenance fees. Regular maintenance costs to keep the system running smoothly.
Hidden costs
- Opportunity costs. Consider the potential opportunity costs associated with the implementation period, such as temporary disruptions to normal business operations.
- Contingency fund. Allocate a contingency fund to cover unexpected expenses that may arise during the implementation process.
When it comes to creating a timeline for PIM implementation, we recommend a phased approach as PIM implementation is a complex process and this approach allows you to gradually roll out the system, making adjustments as needed based on feedback and performance.
Here’s a suggested phased approach:
-
Planning and Discovery (1-2 Months)
-
- Stakeholder meetings. Conduct meetings with all relevant stakeholders to gather requirements and define the project scope.
- Current system audit. Perform an audit of your existing product information management processes and systems.
-
Selection and Procurement (2-3 Months)
- Vendor evaluation. Evaluate different PIM vendors based on your requirements and budget.
- Demos and trials. Participate in demos and trials to assess the suitability of each system.
- Final selection. Choose the PIM system that best meets your needs and negotiate the contract.
-
Implementation Planning (1-2 Months)
- Project plan. Develop a detailed project plan outlining tasks, timelines, and responsibilities.
- Resource allocation. Allocate internal and external resources required for the implementation.
-
System Configuration and Customization (2-4 Months)
- System setup. Install and configure the PIM system.
- Customization. Customize the system to align with your specific business processes and requirements.
-
Data Migration (2-3 Months)
- Data mapping. Map existing data to the new system’s structure.
- Data cleansing. Cleanse and validate data to ensure accuracy and consistency.
- Data import. Import data into the new PIM system.
-
Integration with Existing Systems (2-3 Months)
- API integration. Develop and test APIs for integrating the PIM with your existing systems.
- Testing. Conduct thorough testing to ensure data flows smoothly between systems.
-
Training and Testing (1-2 Months)
- User training. Train users on how to use the new PIM system.
- User acceptance testing (UAT). Perform UAT to ensure the system meets all business requirements.
-
Go-Live and Support (1 Month)
- Go-live. Launch the PIM system.
- Post-implementation support. Provide support to address any issues that arise during the initial period.
Throughout the implementation process, schedule regular checkpoints and reviews to monitor progress, address any issues, and make necessary adjustments. This ensures the project stays on track and within budget.
5. Identify key features
As we touched on earlier, selecting the right PIM system hinges on identifying the key features that address your business's unique pain points and meet the needs of your stakeholders.
Based on the pain points outlined earlier, here are some essential features to look for, along with how they can improve overall efficiency and solve common challenges:
Centralized Data Management
- Single source of truth
- Comprehensive data storage
- Flexible categorization
- Attribute management
- Advanced reporting
- Performance metrics
Localization and Multichannel Distribution
- Multilingual support
- Channel-specific customization
- Data quality and enrichment
- Data validation and cleansing
- Automated data enrichment
Scalability & Flexibility
- Intuitive user interface
- Role-based access control
- Cloud-based software
- Composable architecture
- MACH-Certified
- Integration capabilities
- Automated workflows
When identifying the key features for your PIM system, prioritize those that directly address your specific pain points and stakeholder needs. Here are some steps to help you prioritize:
- Gather stakeholder input. Collect input from all relevant stakeholders to understand their requirements and pain points.
- Analyze pain points. Focus on features that directly address the major pain points identified in your current product information management process.
- Evaluate business impact. Consider the potential impact of each feature on your business operations and performance.
- Consider future needs. Think about your future growth and scalability requirements.
Conclusion
Selecting the right PIM system is a crucial step towards achieving seamless and efficient product data management. By focusing on the essential features, such as data centralization, integration capabilities, user-friendliness, and scalability, you can ensure that your PIM solution will meet your current and future needs all while enhancing the overall customer experience and leading to increased sales and brand loyalty.
As you evaluate your options, consider the unique requirements of your business, seek feedback from stakeholders, and prioritize solutions that offer robust support and training.
With the right PIM system in place, you can streamline your operations, reduce errors, and ultimately drive growth and success for your business.