How exactly does Pimcore reduce sales costs and increase the return on investment in e-commerce?
The implementation of a PIM system, e.g. Pimcore, can help to significantly grow ROI. The tool is used mainly to centralize and automate product information management. This translates not only into lower sales costs but also improvements in many other key areas affecting ROI.
How exactly does Pimcore reduce sales costs and increase the return on investment in e-commerce?
What is Pimcore?
Pimcore is an example of a PIM (Product Information Management) system, i.e. an advanced e-commerce platform designed to manage product information. The system collects and centralizes data related to the assortment, such as content, technical specifications, product descriptions, photos, prices, stock levels, delivery options, and other key information used in the sales process.
The main task and advantage of the PIM system is data consolidation. Regardless of whether you run a small or medium-sized store or sell simultaneously on several platforms and marketplaces, Pimcore will help you to fully control your assortment and product information. The system allows, among others, for:
-
mass data updates across all marketplaces, price comparison websites, and online shopping platforms in real-time
-
unification of product information in all sales channels
-
improving the flow of information between various roles and departments within the organization.
If you’d like to learn more about the advantages and functionalities of the Pimcore platform and PIM systems, read our article: Top 7 Benefits of a Product Information Management Solution.
Pimcore advantages vs sales costs
Is it worth investing in the Pimcore system and imposing such a big revolution in the way you manage product data? Yes, definitely. Pimcore is a tool that can reduce the costs of e-commerce sales, generate significant savings, and increase the ROI of marketing and sales activities.
How? The examples of companies using the Pimcore system show that the platform can save up to 100 hours a month within a small or midsize team. After multiplying this number by the sales professional's hourly rate, it turns out that implementing Pimcore translates into savings of up to several thousand dollars per month, and comes along with the improvement of sales results.
So how exactly does Pimcore increase profits and reduce sales costs?
Process automation
Assortment management in e-commerce requires efficient data storage and processing. Entering product information on every sales platform manually is not only time-consuming and requires constant effort from the sales or marketing department, but it also generates a high risk of errors.
Indeed, human errors are a common reason for serious loss in the IT industry. According to the Essential Human Error Statistics in 2023 report, human errors account for:
-
95% of cybersecurity breaches
-
32% of data loss cases
-
delivery delays in 15% of small e-commerce companies
-
25% of supply chain errors in the FMCG industry.
That is why reducing the human factor through automation is crucial for the proper and efficient use of technology.
Human errors in e-commerce result in an increase in sales service costs due to the need to fix them. They also generate a loss of profits that occurs when customers quit purchasing due to incorrect or outdated information on the website. For companies with a wide range of products that operate on a large number of SKUs, total loss can reach millions of dollars annually.
The PIM system helps to solve these problems by automating processes related to content and product data management, such as standardization of data in product descriptions, assigning products to categories based on a selected attribute, personalizing offers, or introducing dynamic prices. In this way, Pimcore minimizes the risk of errors and allows sales and marketing departments to focus on tasks that actually generate business value.
Product information updates
The PIM system enables efficient updating of product information in all channels. Online sales require constant monitoring of whether the data delivered to customers is correct and up-to-date. The task is even more challenging due to the different forms of descriptions, photo dimensions, or units used on every platform and marketplace.
Pimcore ensures easy data unification and updating information about products, prices, availability, and promo offers without active human involvement. This allows for a quick reaction to market fluctuations and competitors' activities, increasing the ROI on advertising investments, driving the company's competitive edge, and enabling faster expansion into new markets.
Accuracy of information available online also reduces the number of inquiries about the offer. As many as 53% of US customers abandon shopping carts when they cannot quickly find the answer to their questions. The Pimcore implementation and automation of data updates mitigate these risks and reduce the workload of the customer service department.
Integration with other systems
Pimcore can be easily integrated not only with sales platforms but also with other systems used within the organization, such as CRM or ERP. Integrations eliminate the need to enter data on multiple platforms manually and enable automatic acquisition of inventory information, product photos, and sales data right from the original sources.
Thus, Pimcore improves the flow of information between various departments of the organization. Advanced integrations allow for an even greater level of automation, reducing human errors and generating savings.
Reducing the number of returns
Efficient and automatic data management through centralization minimizes the risk of errors in product descriptions, parameters, and photos. Since e-commerce customers cannot physically see and touch the product, their purchasing decisions are driven by the delivered product information. As many as 81% of consumers conduct online research before making an online purchase, and 87% declare that the product description and the content of the product page are the most important factors for them when making a purchasing decision.
Therefore, the quality of the product page is a key element driving conversion and ROI. Outdated or incorrect descriptions increase the number of returns and customer complaints, as well as consume resources and generate additional costs (labor, materials, and shipping). Thus, by automating product data updates across all platforms, Pimcore ensures correct and complete product information and mitigates the risk of reduced profit.
Content personalization
The Pimcore system can consolidate not only product data, but also sales data - especially after integration with other systems such as CRM or ERP. This means that it allows the automatic creation of personalized content and offers based on the profile, preferences, and purchasing behavior of selected customer groups. This reduces the workload of the sales department and accelerates consumers' purchasing decisions. Tailoring the offer to the customer's profile translates into greater sales effectiveness, higher conversions, and improved ROI.
Data analysis and reporting
The Pimcore system also enables accurate product, customer, and sales data analysis. Using the platform helps to get a better understanding of the outcomes of marketing activities and gain valuable and more holistic insights into business results. This allows for making more accurate decisions, e.g. tailoring promo mechanisms to the target group, promoting specific product variants, and implementing more efficient advertising strategies.
Pimcore therefore becomes not only a business automation platform, but also a tool for constant optimization and ROI improvement thanks to the availability of comprehensive, detailed, and readable data.
Of course, these are only a few of the many advantages of the Pimcore system and PIM platforms. Would you like to learn more about its opportunities? Feel free to contact us - we will carefully analyze your company's needs and advise how Pimcore can improve your key indicators and help you to achieve your KPIs.
