PIM for SMEs – What to Consider
Category: Product Information Management (PIM)
Introduction: Professional omnichannel commerce is no longer just for large enterprises. The booming market of digital solution providers is also opening doors for small and medium-sized businesses to implement modern product data management practices. We explain why a PIM system is beneficial for SMEs and what to look for when selecting one.
Product Information Management is a software solution used for the centralized storage, management, and distribution of product data. Successfully integrating a PIM solution is therefore beneficial for SMEs pursuing an omnichannel strategy to market their products via websites, online stores, marketplaces, and physical points of sale.
PIM systems are also advantageous for retailers managing product data from multiple manufacturers and suppliers, ensuring synchronized delivery in the correct format across various distribution channels.
How Does PIM Support Small and Medium-Sized Businesses?
For a long time, many SMEs considered a PIM solution a “luxury.” Beyond the high acquisition costs, integration into existing IT infrastructure often required considerable time and resources.
MarketsandMarkets estimates the global PIM market size is expected to grow from USD 9.0 billion in 2020 to USD 16.0 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 12.2% the forecast period. The major factors driving the growth of the PIM industry include rising demand for PIM solution from flourishing eCommerce industry and increasing need to offering enhanced customer services.
In today’s digital age, characterized by numerous customer touchpoints, even small manufacturers and retailers manage thousands of products that are nearly impossible to maintain manually. The good news: the booming digital solutions market now enables businesses of all sizes and industries to benefit from a PIM system, optimizing all areas of omnichannel commerce:
- Centralized product information
- High-quality product data delivery across multiple channels
- Consistent data exchange with suppliers, retailers, and stakeholders
- More efficient workflows and increased productivity across all process chains
From the start of this decade, there are around 2.1 billion global digital buyers and the trend continues to be going sturdy in the next years
What Should You Consider When Choosing PIM Software?
Over 27% of the global population regularly shops online. Additionally, digital and mobile wallets became the most popular payment method in eCommerce in 2020, accounting for 45% of global transactions. These figures highlight the rapid growth of online shops, marketplaces, and digital marketing and sales platforms.
For businesses, this growth brings both opportunities and responsibilities. SMEs looking to secure their market position must adapt to the constant changes in their industries. However, with the global expansion of the PIM market, businesses face a vast array of PIM providers and solutions, making it challenging to find the best fit. Before deciding, it’s important to define the essential features your PIM solution should include:
- User-Friendliness: Transitioning from outdated spreadsheets to modern cloud-based software should simplify internal and external processes. A PIM system should integrate seamlessly with existing IT systems (ERP, CRM, DAM) while providing an intuitive user interface and clear navigation.
- Faster Product Data Capture: A suitable PIM system allows for seamless data capture and storage from various sources in a central location (Single Source of Truth), making it easier to manage digital assets like images, videos, and catalogs.
- Content Syndication: A key benefit of PIM systems is delivering consistent, complete product data across multiple channels, essential for effective multichannel communication. It’s important to assess how the software can support your simultaneous distribution strategies.
- Cost: Cost is a crucial factor when choosing a PIM provider. Depending on functionality, licensing model (on-premises vs. SaaS), and user count, market prices for PIM solutions typically range from €500 to €5,000 per month (Source: Capterra and G2). While many PIM solutions advertise unique additional features, the core purpose remains the same. A higher price does not automatically mean a better product. The ideal PIM system offers essential features at a fair price, ensuring you only pay for the functions your business truly needs. Industry case studies can help you identify relevant features. Ensure your chosen license model can scale with your growth plans.
- Customer Support: Initial challenges are common when implementing and using PIM software. Regardless of company size, it takes time to fully integrate PIM into daily operations. Regular product updates and continuous customer support are crucial during this phase. Ensure that service and support are covered by a maintenance contract.
Conclusion
SMEs make strategic investments in online commerce. Market developments show that PIM is becoming essential for forward-thinking, competitive businesses aiming to increase revenue. Choosing the right PIM system that meets all necessary criteria while matching your business dynamics can be challenging. With prodexa’s PIM solution, SMEs can create unforgettable product experiences for their customers while achieving ambitious business goals.
Book a free, no-obligation online demo to discover how prodexa can benefit your industry and business model.
Was this article helpful?
65 out of 78 readers found this article helpful.Gerrit Hellwig
Author