As businesses continue to navigate the rapidly evolving digital landscape, it has become necessary to leverage advances in technology for growth and expansion purposes. Artificial intelligence (AI) is undoubtedly the most important of all emerging technologies, and companies are integrating it into their operations in different ways, achieving remarkable results. Product information management software (PIM) is the premier tool for companies to seamlessly manage product data across multiple channels. Recently, this software has taken advantage of AI integration, leading to the development of AI-powered PIM software with fantastic features and numerous benefits that ultimately translate into a higher ROI for companies using it.
HOW DOES AI-POWERED PIM CONTRIBUTE TO MAXIMUM ROI?
A report published by Grand View Research predicted that the global search for the PIM market will reach 17.6 billion $ in 2028. The report adds that the integration of artificial intelligence (AI) and machine learning (ML) plays an important role in this rapid market growth. More companies are recognizing the value of AI-powered PIM software and are investing financial resources in acquiring and maintaining the technology. While the initial cash layout can be significant, the revenue that can be generated by using PIM integrated with AI can be up to three times the investment.
Within weeks to months of using AI-powered PIM software, companies will notice many positive changes in their business processes. High on the list of noticeable improvements is an increase in team member efficiency and productivity. This is mainly due to AI automation of repetitive tasks, freeing up staff to work on other tasks and projects. Automating tasks also helps reduce errors, some of which can be quite costly to the business. In addition, using this improved software means brands can gain an edge over competitors who haven't followed the trend or have yet to max out their AI-powered PIM. In addition, it improves the customer experience, which translates into more repeat sales and customer loyalty. All of these benefits will result in steady revenue generation that will exceed expenses, maximizing ROI.
WHAT ARE THE BEST PRACTICES FOR MAXIMIZING ROI WITH AI-POWERED PIM SOFTWARE?
According to Forrester Consulting, companies using PIM can achieve an average return on investment (ROI) of up to 245%. However, not every company using this software will achieve such a high ROI. This is because the quality and depth of implementation varies from brand to brand, resulting in noticeable differences in revenue generated. Therefore, to truly maximize the capabilities of AI-powered PIM, users should be aware of certain practices that improve results:
Here are five of the best practices for achieving the maximum ROI possible with PIM software powered by AI and ML:
DEFINE GOALS AND OBJECTIVES
Before deploying AI-powered PIM, it is critical to define the goals and objectives for the software and the KPIs that will be used to measure the success of the deployment program. The first step is to describe the specific purpose of upgrading your PIM software to AI-driven software. Is your brand trying to speed up time to market and get ahead of competitors? Or is your goal simply to reduce production information errors?
Your company can then map specific and time-bound objectives from the identified goals. After this, KPIs for measuring progress towards achieving objectives must be selected. These KPIs can be monitored and adjusted over a long period of time to better reflect the set objectives. By approaching the implementation of PIM with this strategy, companies can quickly recognize how well the software is working for them and what changes need to be made for better results.
CHOOSE THE RIGHT SOFTWARE
Several vendors in the software market claim to offer AI-powered PIM, but obviously not all software is created equal. Those existing differences can have a significant impact on how much revenue a company generates with the PIM software. Therefore, thorough research should be done to find the software vendor whose product closely matches the specifications required by the purchasing or subscribing company.
Factors to consider include cost. Your business needs to account for expenses such as initial costs and maintenance costs. Scalability is another important factor; your business should choose a PIM that has room for growth and expansion. Ease of use and integration are more factors to consider in the decision making process, but functionality is perhaps the most critical. Companies should choose a software solution whose features and capabilities can enhance the company's ability to achieve the goals and objectives initially set. Approaching the selection process with this mindset will ensure that the final choice is the best fit for the company.
CLEAN AND PREPARE YOUR DATA
Your AI powered PIM software needs high quality data to function. Accurate and complete data will result in reliable and actionable insights. Therefore, perfecting the data fed into the PIM is important to increase the chances of maximizing ROI. Data should be profiled at the point of entry to facilitate the identification of incomplete, duplicate and inconsistent data and then standardized to fit a chosen format. Data enrichment is another crucial step that can improve the quality of data in your PIM. Adequate data cleaning and preparation will enhance the functionality of your AI-powered PIM and ensure that your business achieves its stated goals and objectives in a timely manner.
TRAIN YOUR AI
To get the best out of AI, the model needs to be trained over a period of time. This training period helps to better tailor the machine to the unique needs of the company running the software. It strongly depends on whether the AI contains its “own” model or whether it uses an external “AI” such as Open AI's ChatGPT. Training your AI-powered PIM starts with collecting all relevant data, such as product information and pricing data, and labeling the information. Options include decision trees, neural networks, and regression models. Then the labeled data is used to train the selected ML algorithm. With regular updates and retraining, the performance of the AI will improve over time, guaranteeing better insights and higher ROI.
MONITOR AND OPTIMIZE PERFORMANCE
Optimizing your AI-powered PIM software is a journey likely to require multiple revisions. That's why it's important to make regular monitoring part of your company's culture. Monitor KPIs to effectively measure overall performance and identify areas that need more work. New tactics and approaches will therefore have to be experimented with on a regular basis A/B testing can come in handy. These split tests help your company assess the different approaches to improving your PIM software and provide unbiased data on the effect of each on your KPIs. By continuously monitoring and optimizing your software, problems are identified at an early stage and solutions are offered quickly. Therefore, performance remains at its peak and the company is posting strong ROIs.
In conclusion, AI-powered PIM is already transforming the way companies manage product information. Adopting a strategic approach to deploying and operating this software may be key to a return on investment that supports the company's ambitions to satisfy customers, scale and stay ahead of the competition.
