March 9, 2022
Why do product launches fail without PIM?
Failed product launches are a challenge that many companies have encountered. However, the most successful companies have also learned to master the discipline of avoiding failed product launches.
In fact, they are so good that 25% of their revenue comes from new product launches. But how is that possible when studies show that 85% of new products fail within the first two years?
At B2B companies, Inriver has collected data showing that increased competition, time-to-market, and handling of product data are among the main reasons for failed product launches.
Specifically, missing or incorrect product data was the primary cause of lost revenue at launch.
In the US, the study showed that 1 in 3 companies had to withdraw products due to incorrect product data. And 26% of UK brands have also admitted to being in the same situation.
So, is product development and procurement to blame for a long time-to-market and product recalls? No, it is rarely the case that the problem lies in the design and development phase of a new product.
The problem much more often lies in the enrichment and handover of data between departments.
Unhealthy processes that do not support clear responsibility distribution, inefficient workflows due to outdated or incorrect technology choices, much more often contribute to errors occurring.
Errors in product data often occur during the handover between individuals and departments within the organization. The problem here is that the processes for managing product data are not efficient enough.
- Per Groth, Founder & Principal Digital Transformation Advisor
Where can the causes of the problem be found?
Specifically, the issues are:
- Data silos that effectively prevent collaboration across departments
- Lack of ability to plan product data from multiple systems and suppliers
- Inefficient workflows resulting in incomplete or inaccurate product descriptions
- Disorganized methods for distributing product data to new and existing channels
If your time-to-market depends on data silos, manual procedures for onboarding and validating new data, then unfortunately you have put yourself right in the crosshairs of the major “delay cannon.”
Product recalls then typically become a reality due to the incomplete data present in your systems.
The entire challenge related to error sources involving identification of necessary data, access and acquisition of data, as well as data import and export, is why a PIM system can become a profitable investment.
How PIM Ensures Success When Launching New Products
#1 PIM Streamlines Your Data Sources
Many B2B and B2C companies receive data from numerous suppliers, each delivering their data in different formats. Some use Excel sheets, others send emails, PDFs, and so on. This creates a challenge because you have to spend a lot of time standardizing and adapting the data to make it valuable for your business. At the same time, your internal data is stored in ERP and PLM systems, which are not designed to handle product data. As a result, this leads to a slow and manual process that increases the risk of delays.
A PIM system automates the collection and standardization of data from all data sources — both supplier data and your internal sources (ERP, PLM, etc.). This completely eliminates the manual and error-prone process of reformatting data for your webshop, image bank, catalogs, apps, and more.
PIM streamlines all internal and external processes related to managing product data.
#2 PIM creates a workflow that operates seamlessly across departments
PIM breaks down barriers between departments, making data accessible, shareable, and synchronized across the entire organization. Product managers, the marketing team, and sales all have access to exactly the information they need to help ensure an efficient and fast product launch.
When departments have complete visibility of all product data in PIM, they can more easily create tailored workflows, track progress, identify challenges and delays. Additionally, they can prevent bottlenecks, eliminate duplicate work, and reduce time-consuming tasks such as managing Excel sheets, resizing images, and translating texts.
#3 PIM optimizes content production
Launching products across borders means your product data needs to be adapted. Translations, adjustments of specifications according to legislation or industry standards require many resources and involve yet another round of time-consuming processes. Unless you have a PIM system that efficiently allows you to create, enrich, and distribute your content quickly—and without complex setups.
#4 PIM increases your presence where everyone starts their search
SEO should be a cornerstone of your e-commerce strategy. Nearly 90% of B2B and B2C customers start their search online. With PIM, you can simplify SEO tags and meta descriptions, making it easier to support your SEO efforts.
If you’ve also invested in a professional copywriter, you’ve built a strong foundation to take control of organic traffic from search engines like Google, Bing, and others.
PIM strengthens collaboration with external agencies such as copywriters. It allows you to grant special access, so external agencies can only view and edit the information relevant to their work.
#5 Tell about your brand. Tell about your products.
E-commerce is about creating a unique buying experience. It’s about delivering the right information to the right buyer, at the right time, and through the right channel (webshop, retail, apps, catalogs).
PIM removes time-consuming tasks and frees up time for marketing teams, allowing them to focus on creating consistent, compelling, and channel-optimized content that boosts your conversion rates through the roof.
Let us help you get control of your PIM
With a PIM system, your product launches become easier and less chaotic.
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