This is the ROI of PIM

The ROI (Return on Investment) of a PIM (Product Information Management) gives information about the (financial) advantage for companies through the implementation of a PIM. These include securing data freshness and uniformity, faster product launches, better customer experiences, and all cost savings. Using AI (Artificial Intelligence) you can stage visuals and narratives for personalized interactions and increase your Conversion Rate, as well as your Customer Lifetime Value.

In this article, you will learn which numbers are crucial for calculating the ROI of PIM and how to implement them in six easy steps.

How does the ROI in PIM work?

To find out if the acquisition of a PIM is really worthwhile, companies determine the ROI of the PIM. First of all, the difference between the investment return and the investment costs is calculated. This sum is then divided by the investment costs.

Source: Contentserv

This is why using a Product Information Management is worthwhile

Source: Contentserv

A PIM manages and centralizes your (contextualized) product data and content efficiently. This means that company departments such as marketing and sales work particularly resource-saving and efficiency-increasing with a PIM. This reduces expenditures and turnaround times – which is good for you as an entrepreneur and your customers. For many companies, the use of a Product Information Management is groundbreaking. For some companies, a PIM is even absolutely necessary – depending on the amount of data. A PIM can be worthwhile for you for many reasons.

• Central hub for product data from all systems and channels: Here all your information and digital assets are bundled centrally. With this, you can say goodbye to outdated, redundant, and erroneous data and organize, manage, and make your information available across formats. You can build on that: Turn them into gripping stories and lead your community across channels on an exciting journey from their needs to your brand and your solutions.
• Role and access control: All externals – such as suppliers and service providers – are integrated into the system. Each person receives exactly the access rights they need for editing, no more and no less.
• Data quality: You can set up rules for your workflows. These check your data for completeness and quality automatically and independently.
• Time-to-Market: Don't lose more time on data maintenance than absolutely necessary, by all your product data being stored once. All authorized persons can have access and spread them directly via the relevant channels.
• Artificial Intelligence: AI accelerates your processes by automating your manual tasks. This includes e.g. the extraction of product information by AI algorithms and data import, the identification of redundant or inconsistent data including correction or deletion by machine learning, the automatic adjustment of product descriptions based on customer reviews and the generation of personalized product recommendations based on the behavior analysis of your customers.

The basics of Product Information Management are concisely summarized for you in this free e-Book.

Calculate the ROI of your PIM in 6 steps

To determine the ROI of your PIM, proceed as follows:

1. Sum up costs: Make a list of all expenses associated with the implementation (e.g. license, implementation, possible customization, training and maintenance costs)
2. Quantify benefits: Assess all tangible and intangible benefits (e.g. improved data precision, time savings, shortened processing or time-to-market times, sales increases)
3. Calculate ROI: Insert the calculated numbers into the formula given above ((return – costs) / costs)
4. Set time frame: Define your evaluation period
5. Risks and opportunity costs: Also consider potential risks, missed profits or advantages due to non-implementation in your presentation
6. Monitoring: Monitor the actual costs and benefits and adjust if necessary

We recommend you to download the free Whitepaper on ROI of PIM before starting to calculate the PIM ROI. In it you will find:

• helpful calculations for realising your PIM investment
• a list of the essential PIM benefits
• practical examples of successful PIM implementations

The author of the whitepaper is Contentserv: one of the leading manufacturers worldwide of Product Information Management. The software is used by well-known manufacturers and retailers in the B2B and B2C areas.

The All-in-One Solution is a so-called (AI-driven) Product Experience Cloud. It optimizes your cross-channel and personalized customer experience as well as the entire collaboration within your team in the creation, maintenance and distribution of high-quality information. It maximizes your personalized Product Experience and Customer Experience and is the basis for well-founded decisions.

The software includes several areas:

• Product Information Management
• Digital Asset Management
• Master Data Management
• Product Experience Management
• Data Onboarding and Consolidation
• Data Quality and Governance

At the Contentserv World Tour on November 14, 2023 in Munich, you'll have the opportunity to experience the diversity of a PIM like Contentserv live. The technological AI capabilities are the main focus.

Conclusion: With the calculation of the ROI of PIM, you always have all potentials and dangers of your PIM investment in view

The ROI of PIM tells you whether the implementation of a PIM is worthwhile for you. This knowledge has a decisive impact on your internal reaction time, competitiveness, and your entire business success. The ROI of PIM is not a one-time calculation, but rather a permanent monitoring and analysis of your ROI. On OMR Reviews you can find a wide range of PIM – including the provider Contentserv. Use the free demo version right away and find out why the tool is so popular!