A PIM system involves licence fees, implementation costs and internal staff time. Once the proposal is on the table, management will want to know what the project will deliver. “Better data quality” is rarely enough of an answer. To secure the budget, you need to quantify PIM ROI.
The benefits of a PIM fall into two categories: savings from less manual data maintenance and correction, and additional revenue from getting products online faster with better descriptions. Both can be measured, provided you establish a baseline first.
The most immediate benefit of a PIM is the elimination of routine work.
Less manual data maintenance: Copying data from Excel spreadsheets, finding errors, entering the same change in multiple systems. A PIM takes over much of this work. A simple before-and-after measurement shows how much time it saves.
Fewer returns: Incorrect dimensions or compatibility information are common reasons for returns. Every return incurs shipping, inspection and restocking costs. Validated data from the PIM reduces these costs.
Faster supplier onboarding: With a supplier portal, suppliers submit their own data in the correct format. Importing data becomes a routine task rather than a project.
A PIM does more than cut costs. Better product data drives more sales.
Higher conversion rates: Complete descriptions, quality images and videos answer customers’ questions before they leave.
Shorter time-to-market: When a new product takes days rather than weeks to go live across all channels, every week saved generates additional revenue.
New channels and countries: With a PIM, adding another marketplace or a new language is a matter of configuration. Without one, it usually becomes a separate project.
A robust ROI calculation starts with your current situation.
Capture costs: Licence fees, implementation, training and internal effort make up the total cost over several years.
Measure your baseline: How many hours per week are spent maintaining data? What is the return rate due to incorrect information? How long does it take to get a new product online?
Set targets: Set realistic targets, such as 40% less manual data maintenance or 20% fewer data-related returns. Multiply these savings by your internal hourly rates and process costs.
“62% of consumers are more likely to keep their purchases when product information is clear, accurate and detailed.”
An ROI calculation shifts the discussion from cost to value. A PIM is no longer just a software purchase, but an investment in efficiency and growth. Quantifying savings and revenue impact makes the value of your product data visible across the business.
Want to build a business case for your PIM project? Get in touch, and we will help you define the metrics.
Related topics: PIM benefits · PIM implementation & costs · PIM consulting
Matthias Kant is Managing Director of Digitize! GmbH, the company behind PIM-Consultants. Previously, he worked in marketing for the Independent Aftermarket at Continental and as a project manager and partner at the Droege Group and KMC Marketing Consultants. Today, he provides vendor-neutral support to manufacturers and retailers in selecting and implementing PIM systems. More about the team
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