Tangible Business Value and ROI from Real PIM Practitioners
Pete is a smart guy. He has 15 years of experience in e-business and was hired to help his new company achieve their ambitious sales and e-commerce targets and support the execution of their data-driven digital transformation strategy.
After listening to customers, employees and partners, he concludes his company can only grow the e-business with a long-term strategy to master product information efficiently and successfully.
While in parallel working on process and governance improvements, Pete is also evaluating technologies to help on their journey. He was specifically looking for some capabilities that are not supported by many of the master data management (MDM) or product information management (PIM) vendors he assessed. His list of requirements includes embedded automated data quality checks, connectivity with specific channels, e-commerce solutions or source systems, and scale to support the substantially high number of products they are planning to offer online.
He understands that a master data-fueled PIM solution could provide the foundation for a new and agile digital business model. However, he fears the solution that will meet their needs and support their long-term strategy won’t be the cheapest.
Is it worth the investment? The solution that meets all of his requirements will increase efficiencies, streamline collaboration internally and with partners, speed up time to market and reduce costs. Pete’s team can improve data quality and transform their customers’ omnichannel product experience.
But to have his new boss Lisa seriously consider the investment, he needs the hard facts on business values. He will also need to get the different cross-functional teams on board, like category management, content marketing or merchandising. Therefore, he tries to build a business case with a list of tangible business results that can be achieved with their PIM project.
While Pete does a lot of research, he finds it hard to detect recent and concrete examples of ROI and business value achievements realized with PIM. Also, when talking to a couple of other companies, he realizes that not every successful PIM project team is able to share tangible results.
To help Pete and his peers promote their PIM project internally, I put together the following real world measurable business results from customers across retail, distribution and manufacturing – all generating significant benefits from their PIM initiatives.
Significantly improved productivity and cost reduction
- 3x more output with the same team(1)
- 60% less steps to enrich products online (from 15 to 6 steps) (2)
- 100% less email exchanges to share and collect media data (from 25 to 0 emails) (2)
- 50% less in workload for data stewards (3)
Created measurable business value and speeded up time to value
- 4x faster introduction of new products (1)
- 67% faster creation of customer quotes (from 60 to 20 min) (4)
- 70% faster translation of product information (from 10 to 3 days) (2)
- 94% faster system integration from a new subsidiary acquisition (from 3 months 5 days) (3)
- Up to 60% faster time to market by decreasing time to onboard new online product information (from several hours to only a few minutes) (6)
- Grow the business 60% and hit sales targets and within two years as the full product range is available online (1)
Delivered market leading customer experiences with
- 25% less returns for online orders thanks to rich product information and informed purchase decisions (4)
- Increased average basket size by 21% thanks to improved cross selling (4)
- Increased online range coverage from 12% to 96% (1)
- Supported conversion rate boost of 10% to 20% (5)
Improved product data quality
- 80% reduction of product data quality issues (1)
The numbers demonstrate how successful a company can be with their PIM project. Some customers reach their ROI targets within less than two years with the PIM investment. (5)
But let’s not forget that some of the most valuable outcomes will never be easy to measure. Happiness for example. Like Emma Toop from Kmart Australia said at Informatica World 2018, thanks to their successful PIM implementation, their customers, teams and stakeholders are now happier. How great is that?
(1)Emma Toop, Online Strategic Initiatives Manager, Kmart Australia at Informatica World 2018
(2)A Luxury retailer at Informatica World 2017