The retail industry is at a transformative juncture, tackling complex challenges on multiple fronts. Retailers are accelerating their digital transformation, amplifying their omnichannel customer engagements, and keeping pace with evolving buying behaviors. Furthermore, the massive influx of data from new products, stock-keeping units (SKUs), and material management have made it necessary for retailers to streamline their business and drive greater value through product information management (PIM) and digital asset management (DAM).
As customers demand variety, convenience, and personalization, PIM and DAM can act as the foundation for the future of the retail industry. Retail enterprises investing in PIM and DAM can streamline their businesses through e-commerce, m-commerce, pricing optimization, supply-chain efficiency, advanced inventory modeling, and process automation while gaining access to rich customer insights and standardizing the products globally. Nevertheless, the tangible benefits for retail businesses go beyond digitization and standardization with the following:
Why Should Retail Enterprises Invest in PIM and DAM?
Creating a Single Source of Truth to Drive Optimized Product Experiences:
Retailers must drive uniform product information across multiple platforms. A centralized repository that consolidates, enriches, standardizes, and acts as a single source of truth for products improves the reliability and accessibility of the information. Consolidating scattered and siloed data further enhances the data quality, reducing errors and the need for manual intervention. With a centralized and reliable information system, buyers can quickly search and evaluate products. This empowers the customer to make informed decisions, trust the business, and create positive engagements on the platform of their choice. Better product data availability and searchability across various channels can improve customer engagement by over 40%, helping retailers optimize their product experiences even further.
Allowing Strong Governance and Data Consistency:
PIM and DAM ensure strong data governance fundamentals for retailers by reducing quality, consistency, compliance, and legal issues. With standardized formats available, enterprises can be agile and scale quickly by seamlessly integrating digital assets into their existing IT infrastructure. In addition, a centralized system can empower the business with valuable insights as more data is ingested into the system, improving the efficiency and availability of data for key decisions.
Enabling Marketers and Product Experts to Collaborate Effectively for Greater Impact:
The stakeholders in a retail value chain, including the marketers and product experts, must work in tandem to offer relevant and personalized customer experiences. This requires the product data to be reliable, consistent, available, and accessible uniformly to the relevant stakeholders. The centralized and integrated product information supported by strong data governance systems can unlock new possibilities for marketers and experts. With fast access to accurate information, organizations can streamline their operations across marketing assets and substantially improve the accuracy of geographically and demographically targeted campaigns.
Enhancing and Optimizing Product Content for Different Channels to Improve Consumption and Usage:
PIM enables businesses to centralize data from multiple sources, create custom product hierarchies, implement data modeling, and conduct validations. Powered by a context-sensitive user interface, an enterprise can easily enrich its data, create and organize catalogs with comprehensive information, and export the data across multiple touchpoints. The simplification of the processes and the consistent availability of high-quality data across different channels ensures that the customer finds what they are looking for easily and have a positive experience of engaging with the business.
Preparing for New Channels and Touchpoints:
Creating a centralized data management and product information ecosystem with a high degree of standardization ensures that the business is agile and scalable. In addition, an API-first architecture enables businesses to expand their services across multiple channels seamlessly, lowering the time-to-market. Supported by customizable microservices, pre-built data, experience management building blocks, and easy access to reliable data, retail companies can be future-ready with content and information available for customers at both the existing and emerging touchpoints. This also helps scale engagement on multiple platforms by using content that can lend itself easily to different formats. Furthermore, as more and more customer data is generated, companies can leverage data management systems to gain deeper insights into customer behavior and even predict their emerging needs.
Improving the Effectiveness of Product Content Data on Target Channels:
Customers expect on-demand availability of relevant data to engage further with any business. Companies with solid PIM and DAM in place can quickly provide trusted, relevant, and comprehensive data to customers seamlessly across multiple channels. With strong data governance systems, organizations can gather insights from the incoming data, predict consumer behavior, and improve their offerings on targeted channels with high accuracy. Businesses can track, consolidate, and manage data from web, mobile, marketplace, and social media platforms to gauge evolving customer needs and publish consistent and accurate product information across all channels. Investing in systems that deliver such accurate information to the customers facilitates direct benefits both in terms of the quality of customer engagement and improved revenue.
Optimizing Fulfillment and Supply Chain Management:
A streamlined data and product management ecosystem ensure higher transparency and visibility of products and processes across the organization. From efficient inventory management to forecasting supply-demand fluctuations, a centralized view of data enables businesses to optimize resources. A single source of truth for products helps multiple stakeholders, including vendors, supply managers, marketers, store managers, and logistics managers, to plan ahead of time. Furthermore, a bird’s eye view of the entire value chain helps decision-makers identify gaps and inefficiencies and plug them. Such a system lowers the need for manual intervention and can effectively yield automation, improving revenue for the business and customer experience.
Investing for Innovative Retail Experiences:
The recent decisions of retail business owners will have a long-lasting impact on their revenue in the coming years. Investing in systems and processes that provide easy access to high-quality data and improve visibility across the entire value chain can have multiplier effects on the business. PIM and DAM solve some of the most crucial problems for retail companies while simultaneously improving business-wide efficiency and building reliable data infrastructure.
The retail industry is poised to benefit substantially from investing in PIM and DAM as they add company-wide efficiency and enable smoother customer journeys, effective supply management, sharper customer engagement, and data consistency across platforms. This, in turn, leads to improved responsiveness, higher ROI, and, most importantly, the enhanced customer experience that the business can bank on.
Dietmar Rietsch is CEO of Pimcore. A serial entrepreneur with a strong sense of innovation, technology, and digital transformation. He is a passionate entrepreneur who has been designing and realizing exciting digital projects for more than 20 years.