Let’s play a game: which of the following acronyms are types of ecommerce tech, and which are styles of electronic music? Hover over the image for the correct answers.
With all the different options out there, it can seem impossible to find the right software for you (and the right style of electronic music, for that matter). It’s not as complicated as it looks though—it just takes a bit of research when you’re getting started.
With that in mind, I’ve put together this guide to help you distinguish between two frequently-confused options: Product Master Data Management (a.k.a. Product MDM or PMDM), and Product Information Management (a.k.a. PIM). We’ll look at the key definition and characteristics of each and then go over when and why each one could be the right choice for you and your business. Ready when you are!
Product Master Data Management (or just Product MDM from this point on) is a variety of the more general Master Data Management (MDM), just in case that wasn’t clear from the name. MDM is all about connecting all the different parts of your company—so production, marketing, sales, customer support, HR, you name it—and getting everyone to work from one single, well-defined version of all the important data in an organization, also called a “golden record.” For more information about how MDM software compares to PIM software, by the way, you can watch this handy video guide:
Product MDM, then, is the side of MDM related to your products (logically enough). It means creating a central library of your company's product data, in which you meticulously organize and store detailed information about every aspect of your products. This detailed cataloging covers a range of different data, including categories, prices, product numbers, manufacturing information, stock levels, and sales statistics for each item in your company's product line.
Product MDM is a pretty important practice for a company's infrastructure since it basically comes down to managing product data in an efficient, logical way. By making sure every product is accurately represented with all the necessary data points, Product MDM lets you maintain the integrity of your company's product portfolio. The data governance involved can prevent things like overlapping categories or mislabeling, and it plays a vital role in detecting and eliminating duplicate data too. Having unique and precise product information is crucial in a market where even minor discrepancies can lead to significant consequences (in other words: selling less stuff, making less money, and general misery and woe all around).
Behold the majesty of accurate product information! No flash photography, please.
The practice of Product MDM comes with a symphony of complex, critical challenges, since it involves managing a massive library with thousands of attributes, relationships, and records, all spread across different platforms and systems. Trying to keep track of everything with traditional methods (*cough* like spreadsheets *cough*) is like trying to play techno on a harpsichord—you just won’t be able to keep up with the up-tempo beat of modern product data.
For that reason, software solutions designed to help with PMDM should offer a selection of key features—here are five of our top picks:
Moreover, Product MDM software is an analytically driven application, and normally provides interactive and customizable dashboards to give you a convenient way to oversee your data (and remix it as necessary). Tools like this can help you prioritize tasks and make informed decisions, based on real-time information.
Product Information Management (PIM) is another headliner at our ecommerce technology/music festival (don’t knock it till you’ve tried it, some of us are still wearing our wristbands from last year). While Product MDM can give you an overview of all the different types of product-related data, including production and post-sales data, PIM has a more specialized, in-depth focus. It's primarily concerned with managing and optimizing the product information essential for effective marketing and selling products through various distribution channels.
At its core, PIM is about helping you get all your product information accurate, up-to-date, and tailored for the specific requirements of different sales and marketing platforms. This includes everything from the basic product details like names, descriptions, and prices, to more nuanced data like multimedia files, specifications, customer reviews, and even localized content for different regions.
By focusing on this area of product data in particular, software that’s specifically designed for PIM is able to offer more advanced features in this regard than the more general option of (Product) MDM software. PIM tools are designed to make your selling process as smooth as possible, from start to finish, and to integrate easily with other platforms and systems related to ecommerce and product-related information. There are also functions to enrich all this data and content, which can end up massively boosting sales and improving your customer experience—but more on that later.
Don't worry, confused purple shirt man, there's more info on the way!
On that note (pun 100% intended), let's shine a spotlight on those key features that make PIM software a must-see act on the ecommerce stage.
PIM and its associated software give creative direction to your product information, providing you with the tools to tell each product's story in the most compelling way possible. It's not just about managing data, it's about crafting experiences, engaging customers, and building a brand narrative that resonates across all channels. With PIM, your products don't just exist in the market—they sing (and in tune, too).
Both Product MDM and PIM are instrumental (I’ll stop with the music puns soon, honest) in the world of modern ecommerce, with each serving distinct but vital roles. The choice between them can be a complicated one, and it often reflects the unique priorities, situations, and operational contexts of each individual business.
Product MDM is often considered the backbone of data integrity, offering a centralized approach that lets you manage and synchronize product data across your whole organization. Software in the MDM sector is particularly beneficial for larger enterprises with super complex product ranges and loads of diverse departments, upholding uniformity and accuracy of information throughout the company.
PIM software, on the other hand, has been developed extensively to help deal with the demands of modern digital commerce. Its capabilities go beyond just managing your data, and include specialized aspects that are crucial for contemporary marketing and sales.
PIM software = a stellar option for your business.
Ultimately, it comes down to your business and its needs, as well as the other systems that you already have in place. PIM software goes above and beyond when it comes to getting your product information out into the world in the most appealing way possible, but isn’t designed for inventory or product design-related information—you’re better off linking it to something like an ERP system for that. Product MDM software, on the other hand, is able to handle that kind of data, but generally lacks features to help you populate your product listings with sales-boosting content.
Given their different strengths, you may well be thinking “Well hey, why don’t I just get both?”. It’s not a bad idea, but naturally, doubling up on software will increase the investment and effort involved as well. Since there is a degree of overlap between the two, the majority of companies do tend to just use one or the other, and it’s really only enterprise-level businesses that go for both. Still, if you’ve got the resources available and the need, then sure—why not both?
Miguel and Tulio both love ecommerce software.
To wrap things up, it's pretty clear that the symphony of ecommerce technology, though clearly complex, doesn’t have to be overwhelming. The key is to understand the unique attributes and strengths of both Product MDM and PIM systems. The first can help share data between all the different stages of a product’s lifecycle, which helps guarantee data integrity across your organization. The second, on the other hand, gives you a way to take your data and transform it into captivating, market-ready content that can be shared with the wider world. The decision between the two hinges on your business's specific needs, scale, and ambitions in the digital marketplace we all share.
For those eager to stay ahead of the curve, understanding how adopters of these technologies are putting on the best performance in the industry can provide invaluable insights. Dive deeper into the world of Product Information Management with our comprehensive guide, which really gets into how PIM adopters are not just meeting but beating their competition—it’s a great way to make sure your business is hitting all the right notes in your ecommerce concert (ecomcert? No? Okay, now I’ll actually stop).