Why Clinging to PIM Will Cost You in the E-commerce Race
The product information management (PIM) software category emerged when having a simple database to store product data, from which other systems could reference, was considered a win. This was thirty years ago.
Today, digital commerce is a primary business driver for retailers, brands, and distributors. According to a December 2023 report by Forrester Research, product information quality is “the North Star to drive conversions.” In other words, great product information enables sales (i.e., value) for the enterprise.
Classic PIMs aren’t architected for digital commerce. However, product experience management (PXM) platforms can help CPGs navigate the digital shelf and respond to the demands of modern commerce.
The Classic PIM Use Case
Classic PIMs were created to manage internal data against an internal data schema. IT teams define the schema’s attributes and properties across relational databases, cleanse their data, and then load that data into the PIM to create a single “golden record” for each product.
While this model works for basic data centralization and storage, it also makes for a rigid database and process. For example, business teams rarely have access to change any of the data or attributes in the PIM, and doing so requires going through IT or a third-party PIM vendor. Making any changes that are approved can be expensive, requiring time and technical work across databases.
Essentially, PIM systems were designed to avoid constant schema revisions. However, digital commerce requires it.
Also read: Learn how Ghirardelli is automating product content optimization
What’s Changed?
Digital commerce has created an explosion of downstream channels, each with distinct rules and data requirements for the product data they will accept. Target, Walmart, and Amazon changed their data ingestion requirements nearly 1,000 times combined last year alone.
The reasons for these changes vary: differing regional regulatory requirements, unique merchandising opportunities the channel requires, or varying rates of digital maturity between the channels.
Instead of a single “golden record” of data, business teams must now store, manage, optimize, and deliver hundreds or even thousands of continually optimizable golden records to ensure the product information appears on the product detail page and drives sales, thereby creating value for the enterprise.
From PIM to PXM
PXMs incorporate PIM features like hierarchy, taxonomy, and governance but can also efficiently prepare, validate, and publish content to various downstream destinations. Compared to PIM, additional capabilities include multichannel data management, content scores, channel connectivity, collaborative workflows, and the delivery of below-the-fold content like videos, comparison charts, etc. They blend PIM back-office data management with front-office, market-facing capability.
Product experience management platforms are also built on NoSQL database design patterns. This means that instead of the storage system enforcing or requiring data to match a schema such as with a traditional relational database, the storage system is more flexible and decoupled from the governance and validation that happens at other layers of the architecture.
The separation of "storage" from "schema" is what allows PXM solutions to store many versions of the truth (i.e., many golden records) in parallel and evolve their schemas to meet multichannel demands.
Additionally, PXMs can include AI and automations that drive efficiencies and cross-team collaboration. Users can set up proactive alerts about content gaps and errors and tap AI-driven content generation and recommendations capabilities.
Also read: Could multimodal intelligence be the future of generative AI?
The Future of Product Information Management
The product information management category is one in transition, with PXM driving a fundamental expansion of the basic use case for systems that store product information. Innovation and investment in PXM is advancing rapidly. It’s an exciting space that will continue revolutionizing shopper experiences to drive significant value to the enterprise.
Rob Gonzalez is co-founder of Salsify.
