PIM, DAM or both? Why PIM and DAM belong together
Product Information Management and Digital Asset Management
Product Experiences. This is the buzzword of the hour – both before and after the purchase, in online business and in stationary retail. The company’s own system landscape undoubtedly plays a decisive role in this context. But those responsible often find it difficult to decide which software solution is suitable. In this blog article, you’ll learn whether a DAM system or a PIM system is more appropriate for your product experience management needs.
In today’s digital world, where consumers are literally flooded with offers and can place orders at any time and with just a few clicks, it is no longer the product that provides the decisive impetus to buy, but rather the associated experience, i.e. the product experience. Delivering a compelling product experience is a challenge in itself. Given the diversity of communication channels and sales opportunities, this is even more true. Without the right software support, the creation of product experiences is no longer manageable. The question arises whether it should be a PIM or rather a DAM, because the functions seem to overlap at first glance. Or is it not? A clear no! Although some functions of DAM and PIM are similar, they differ greatly in their application areas. But let’s start with the basics. What is a DAM and a PIM anyway – short and sweet promised!
At a glance: What are the differences between DAM and PIM systems?
DAM = Brand Consistency
DAM systems store and manage digital assets so that they can be retrieved directly when needed. Digital assets can be images, photos, logos, graphics, videos, audios, presentations or documents, i.e. all marketing materials of a company. The finished asset is the primary focus. Therefore, the main task of DAM systems is to store these assets in a central location, make them easy to find, version them, provide them to authorized persons and transfer them to the right systems (e.g. online store or marketplace). Summarized:
- The purpose of the software: Digital Asset Management
- The goal: To ensure a consistent brand
- The users: People who create, deploy and / or use assets
- The need: With a large number of digital assets that need to be distributed across the enterprise and platforms
PIM = Product Consistency
PIM systems manage product information required for marketing and selling products. As a central system, a PIM system imports required product master data and makes it available within the application for refinement. The result is accurate and appealing product information that can then be transferred to the appropriate sales channels. Consistent product information is at the forefront. This is achieved by centralizing all product information in one system and optimizing workflows for product data refinement.
- The purpose of the software: Marketing of products
- The goal: Creation of appealing, saleable product information
- The users: People who create product information
- The need: With a large number of SKUs and a dynamic product range that needs to be updated frequently
But then where does the statement that both systems are similar come from?
This is mostly due to the integration of the two systems. This blurs the differences between PIM and DAM because it feels like you are working out of one system. Ultimately, a PIM cannot work without a DAM and a DAM by itself, does not yet provide product information in the channels. Even though some PIM vendors offer parts of DAM functions in their PIM systems and some DAM systems can do a touch of PIM, it is advisable to consider the disciplines separately.
And what would be the right software for me now?
Attention, here comes the standard phrase: It all depends. Not very helpful. But don’t worry, I’ve outlined different scenarios for you here, each for DAM and PIM. Let’s start with DAM.
Digital Asset Management (DAM)
Are you only interested in managing your digital assets? Then there are only three scenarios that speak for a DAM system:
- Digital assets used by many different users
If you have a lot of digital assets that you need to provide to various stakeholders, then a DAM system will make your life a lot easier. As a dynamic and central ecosystem, all released digital assets are available in a DAM system for immediate use – at any time and from anywhere, because a DAM system works web-based. Therefore, the use requires only Internet and a browser. Thanks to authorized users, you can easily ensure that the respective stakeholders really only access the materials that are intended for them. This could be your colleagues, your partners, your agencies, your distributors and so on. Once the roles are determined, you never have to send files again, because everyone can pull the materials themselves. Since meaningful keywords are assigned to each asset, users simply search for keywords and have the desired result immediately at hand. When downloading, they can even specify for which use case they need the assets. This will then directly adjust the format of the asset. You completely eliminate material provisioning from your daily work routine and incidentally ensure your brand security. This is because only current assets are included in the DAM for sharing, and sensitive, proprietary assets are simply protected. - Digital assets distributed across multiple channels and platforms
If you have multiple channels and platforms where digital materials are delivered, a DAM system can help you maintain control over digital materials and ensure brand consistency. Whether CMS, online store, marketplaces, social media, brand portals or online and print catalogs. They all tick differently and all have their own rules of the game when it comes to digital content. Thus, it is commonplace that there are different, channel-specific formats for an asset. In classic folder structures, it’s easy to lose track of everything. Not to mention the work required to create different formats. Not so in a DAM system. Did you know that a DAM system stores assets in a media-neutral way and therefore only needs a single source file? So you only have to put the source file into a DAM and the correct format conversion depending on the channel is done by the DAM. Format adaptations and the storage capacities required for them take care of themselves with a DAM. - Digital assets that supplement product information with media elements
If you already have a PIM system, but the assets in it cannot be managed properly because asset management is only a rudimentary function in the PIM, a DAM system can ensure optimal interaction between text and images here. After all, in addition to rich, high-quality product descriptions, media elements also play a crucial role in product communication. Particularly on highly frequented marketplaces such as Amazon, pure text presentations would simply be lost and a single image alone no longer convinces customers of a product. Customers want to experience a product visually from all perspectives and have all the necessary documents at hand. In such contexts, a DAM supports you with channel-specific images, multimedia content, and supplemental documents that draw attention to your offerings and ensure that online shoppers fully engage with your products. In this way, you ensure that they don’t get the wrong idea about your products and subsequently regret their purchase decision – which in turn has a positive effect on your return rate. In addition, keywords assigned to each asset increase the findability of your products in search engines and boost your SEO efforts.
Product Information Management (PIM)
You are only interested in the creation of product info? Again, it’s pretty simple, because basically there are only three scenarios here as well.
- Product information compiled company-wide
Those who have many products know it very well. Product data resides in different systems and in different departments. Or they may come from suppliers. All this product data must first be merged in order to process it. If there is no PIM system and Excel files are used, errors are inevitable. Not to mention the time it takes to compile product info. Efficient processes and a fast time-to-market are simply not feasible with inconsistent data management. Therefore, it is advisable to rely on a PIM system, especially for a large number of products that then also have to be updated frequently. As a central system, a PIM system automatically pulls all relevant master data from other systems, such as an ERP or from suppliers, and the actual work of preparing product data into convincing product information can begin immediately. Everyone works in the same system with the same data. No frustration, no delays, no incorrect product info, because the entire product know-how is centrally located in the PIM system. - Product information that convinces at every touchpoint
Product information is the be-all and end-all of any product experience in e-commerce. The reason is simple, because in e-commerce, the products for sale cannot be touched or tried out, so online shoppers rely entirely on the claims made by manufacturers and retailers. Consequently, they must also be able to provide product information that covers all details. This also includes complementary products (keyword: up- and cross-selling). Likewise, it is crucial for the success of product communication that the information is always up to date and does not differ in content at the individual touchpoints. Because incomplete, outdated or even inconsistent product descriptions can quickly make your brand look unprofessional and drive online shoppers straight into the arms of your competitors. Therefore, in e-commerce, you can’t avoid investing in a PIM system if you want to be convincing at every touchpoint, because a PIM only lets flawless product info into the channels (there are quality checks in the PIM). Oh yes, product info must not only be flawless, but also channel-specific. This means that product info in the online store is longer than in an online catalog (space reasons, logical). On marketplaces, again, people are addressed differently than on social media. For this reason, with a PIM, and really only with a PIM system, it is possible to add channel-specific information to products. - Product information that is individualized for specific target groups
Every person is different. Therefore, product information must not only be consistent in order to convince. Ideally, product info should offer a personalized approach. In a PIM system, you can take customization into account and play it out as needed. Very modern PIM systems, rather PXM systems, are even able to play out not only target group-specific product information, but also context-related product information, i.e. according to the specific use case of your customers. This raises the product experience to a completely different level.
When do PIM and DAM make sense together?
For an effective product experience, you need both: text and images. Many companies have already recognized this. But to stand out from the competition and turn potential customers into loyal customers, another product content component is needed: personalization and contextualization. They are the guarantor for convincing brand and shopping experiences, because the product presentations and messages must be precisely tailored to the needs and wishes of the target groups and ideally brought to the man or woman as part of omnichannel publishing. For this to succeed, however, a solid database is needed. It also requires absolute control over product- and communication-related data processes and workflows in the company, especially in the areas of PIM and DAM. The need for both systems has therefore led to the emergence of Product Experience Management (PXM) solutions.
What is PXM now?
PXM, short for Product Experience Management, primarily comprises the disciplines PIM and DAM. The big difference is that only a PXM system enables contextual addressing. As a result, only a few PIM providers can meet these requirements, because only the latest PIM systems are able to provide potential customers with products according to context or according to use case. Means: Adapted to different lifestyles, companies can convey much more about their products than just generalistic product statements. Further, it is crucial that PXM systems, due to the ever-growing demands in digital commerce, will increasingly evolve towards a holistic platform, whereby PXM vendors partner with other solution providers to expand their offerings (e.g. PLM, pricing software, AI-based services for even more automation, etc.). In the future, the focus will be on the entire product, i.e. from its creation and introduction to its retirement.
Quite a lot of info, right? Let’s get to the point. A DAM, PIM or PXM is beneficial if you …
DAM | PIM | PXM |
… need to manage a large number of different types of digital assets. | … have a thousand or more SKUs with a dynamic product range. | … need to deliver engaging product stories to your customers. |
… need a central place to store and manage your digital assets. | … have a large amount of data coming from different sources. | … want to use a holistic system for product experience management. |
… need to access and retrieve digital assets on a regular basis. | … your products need to get to market at high speed. | … create compelling product experiences across all touchpoints. |
… need to share or distribute assets frequently within the organization or on external platforms. | … need to provide your customers with a lot of information when shopping online. | … need a foundation for exceptional customer experience (CX). |
… you have many different people within your organization who need to access or use the digital content. | … have several departments that need up-to-date and detailed product information. | … want to deliver product information in context. |
… use assets on multiple websites or platforms that have different requirements for the final product (e.g. file size, etc.) | … need your product info syndicated on multiple channels. | … need actionable insights on product performance, customer feedback and market share growth. |
… use digital assets in other applications such as PowerPoint, InDesign, Photoshop, WordPress and others. | … you want to deliver target group specific product information. | … want to keep up with the growing demands in digital commerce. |
Summary
PIM and DAM are not in competition with each other, quite the opposite. PIM and DAM each have their raison d’être and are complementary systems. Together, they form a powerful team when it comes to solving one of the biggest operational problems facing e-commerce companies: the efficient management, preparation and delivery of product information and media content. With a system landscape that closely integrates the disciplines of PIM and DAM, as well as other communication-relevant systems such as CRM or CM, you can simplify all aspects of your marketing and sales processes – and, as part of omnichannel publishing, distribute effective product content to a wide variety of communication and sales channels.
In summary, here are the benefits of PIM and DAM at a glance:
DAM
- A single repository for all your assets, ready to grab anytime, anywhere
- Consistency and protection of your brand through current and approved assets
- Streamlined asset management as the speed of publishing is dramatically increased and duplication of effort is eliminated
PIM
- Shortened time-to-market, as launches and updates are much simpler
- Improved operational excellence as processes are optimized to a maximum
- Ideal customer journey, as product information is timely, consistent and of high quality
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