Dynamic feedback loop creates optimal product content in the PIM
Today, any company involved in manufacturing or trading to any significant extent cannot ignore the importance of product information management (PIM). PIM is a concept that essentially involves collecting all relevant product information in a central location, enriching it, and then distributing it to the various output channels. A dedicated functional class has been established for these tasks, featured in over 100 different PIM systems worldwide, with varying levels of complexity.
However, the potential of a PIM system extends far beyond its initial implementation. There is now a whole range of expansion options that support product communication, following an end-to-end approach. In this article, we‘ll take a closer look at the key aspects of distributing product information and the subsequent processes involved.
3 steps to a closed loop product information management
Step 1: Introduction of PIM
Every company that deals with product information management for the first time will start by introducing a PIM system to collect and enrich the existing product information at this central point and then transfer it to the various channels. The localization aspect, i.e. the translation of the collected product information into the required target languages, plays an important role here. However, after the gradual introduction and integration of the system and the adaptation of relevant processes, the "PIM journey" is not yet over...
Step 2: Integration of feed management
The number of sales channels is growing rapidly, especially for brands and manufacturers that sell products online. As the number of channels increases, the cost of providing product data for the various channels (content syndication) rises considerably. Every channel has unique requirements for the product data it receives, which change over time. This leads to high costs for consistently supplying and updating product information — especially when it comes to channels that are beyond direct control, such as marketplaces. Against this backdrop, product information management is increasingly being complemented by "feed management". The core functionalities here are primarily the efficient creation and delivery of product data feeds to external target systems.
Step 3: Adoption of digital shelf analytics
The integration of feed management ensures that all channels are efficiently supplied with product data. However, it‘s no longer enough to simply "fire and forget" product data across channels and hope for successful conversions. The presence of an increasing number of digital marketplaces brings further challenges:
- The company's products compete with many competitors and can be compared in great detail. To "get lost," the products must stand out with high-quality and comprehensive product information.
- The products must be promptly listed on their respective marketplaces upon providing the data. With manual checks by ecommerce managers, this is a considerable and almost unaffordable effort.
- In addition, you should monitor and evaluate the prices, rankings, and ratings of your own and relevant competitor products so that you can react if necessary.
To overcome these challenges, a separate function class called Digital Shelf Analytics (DSA) is available. With DSA, multiple target systems can be automatically scraped to extract key metrics, which are then displayed on dashboards. Based on these key figures, the product content in the PIM system can, in turn, be optimized and redirected to achieve a better presentation and, ultimately, higher conversion.
Therefore, integrating a DSA solution is the logical extension of product information management wherever there are corresponding requirements.
Prerequisites for a closed loop approach
To ensure that the scenario described above actually works efficiently, the following points must be considered:
- The above-mentioned function classes for PIM and feed management must be deeply integrated. All relevant product data must be automatically transferred from the PIM to the feed management solution so that the various product data feeds can be automatically created and delivered.
- Integrating DSA into the PIM system is also crucial. Without this integration, the key figures collected would be delivered without subsequent action, necessitating manual optimization efforts from employees. This process would entail a time and financial investment that is not economically viable. Therefore, the key figures collected by DSA must be automatically transferred to the PIM, enabling tasks and actions to be triggered based on individual business rules. This enhances product information and optimizes its display across target systems. For the first time, this establishes a closed-loop system for the continuous improvement of product information. When the individual process steps in this closed-loop process are also supported and automated with AI solutions, the result is an overall system that reacts independently to defined parameters in the target systems.
- Experience shows that companies are strongly advised to take the steps towards a closed-loop process with a sense of proportion — i.e. not to introduce all functional classes at once or implement all products, product ranges, and sales channels simultaneously. Clear prioritization and a willingness to continuously improve processes and key figures are prerequisites for successful implementation.
Who benefits from a closed-loop scenario?
The scenario described is particularly relevant for companies that sell their products on a growing number of online marketplaces and third-party digital commerce websites, making it especially important for brands and manufacturers.
What are the advantages of a closed loop PIM?
The combined and integrated use of the PIM, feed management, and digital shelf analytics has the following advantages for these companies:
- Continuous improvement of product information based on key figures from the channels
- a swift response to predefined KPIs
- Finally, an increase in conversion rates in the channels
The supplier market
The market has responded with diverse strategies:
Some PIM providers have expanded their system with functionalities for FM and DSA through in-house development or acquisitions, thus offering an integrated overall solution. The most recent example of this is the acquisition of the feed management provider Shoppingfeed by Contentserv.
Others rely on connectors to dedicated solutions for FM and DSA so that the customer can decide on a case-by-case basis which is the best possible combination for them.
You can find an overview of the relevant providers for PIM, FM, and DSA in the SIMIO Navigator.
The main takeaway
Successful product communication now hinges on shifting away from static product information towards dynamic adaptation to evolving conditions such as competition, channels, and customer expectations. As the pace of change accelerates and product and channel volumes grow rapidly, effective adaptation requires automated system-supported adjustments. The combination of PIM, FM, and DSA into a closed loop offers a promising solution to achieve this agility and responsiveness.
Author
Jürgen Burger
CEO, Chief Analyst PIM / PXM Simio Consulting
https://simio-consulting.com
