Product information management involves controlling the listing information of a product, so as to push sales and accurately report the contents. All of the product details, from the description to the dimensions and other logistical data, are entered into a system, which then goes through a variety of channels. This product data should be organised and edited to be colourful, meaningful and reflective of the brand itself. Media reports on this information, including e-commerce stores, print catalogues, and other electronic readers.
Consumers want data that is not simply there for show, but that includes valuable information and images that help them understand the issue—or in effect, the solution to their problem that the product provides. Unfortunately, many products today have shoddy data forms, and they may be inaccurate or at least uninteresting. A product information management solution seeks to rectify this situation with better quality writing.
Some studies have suggested that by improving the accuracy and overall quality of new product data listings, or New Product Introductions, conversions can improve by as much as 300 percent. Customers want to know what they’re buying and why it’s going to satisfy their emotional need. It ties into the marketing message and the overall campaign and so this listing information should not simply be outsourced to the cheapest supplier.
It’s particularly important to improve the quality of this product since web search engines do include shopping results for some targeted keywords, and in the case of PPC or SEM marketing, perhaps even direct links to store products. This means the product information should be written in such a way that customers could easily find the product with a generic customer search. Navigating to that product from the sales listing is also a key component in developing a strategy.
Studies Show Startling Results
According to data provided by A. T. Kearney and AMR Research, without an effective Product Information Management solution can cost industries billions of dollars. What happens is that sales are lost every year because of bad supply chain information provided, compromising a product listing.
The research team also determined that 30 percent of all listing data contains errors and these do reflect poorly on the brand. Simply investing time to correct these errors is estimated to cost companies over three million dollars. What a waste of time and money! Lastly, the research time determined that up to sixty percent of all invoices also contain errors. This reflects poorly on the brand and not to mention, this is the crucial moment as the client pays—when trust is crucial.
All of this research indicates that large companies bound to make errors and with no feasible way to avoid those errors should invest in a PIM solution. Some companies will outsource these needs to PIM-centric companies that offer these services as well as a guarantee of accuracy. More importantly, they can develop the content that sells—the words and numbers that give the customer the information they need so that they can make a purchase with confidence.