Think about the last time you had a fantastic online shopping experience. You probably hit a couple of websites to review various products and make your selection. The information on those pages—product data and digital assets—appeared at the right place and time.
Most manufacturers know that the back-office systems behind this great experience are PIM and DAM software. Simply put, PIM is the central source of truth for product data, while DAM is the same for product assets. Together, they create the engine that ensures a consistent shopping experience across channels for modern brands.
If you don’t have either of these systems yet, or you’re using antiquated or homegrown systems to complete the functions of PIM and DAM, where should your company invest first?
The answer: It depends.
We know that’s not what you wanted to hear. The good news is we have guidelines to help you make the right choice for your business.
A common misconception about PIM software’s DAM function
PIM is often the first choice for investment, thanks to its strengths in managing product information, such as specs and marketing copy—essential for omnichannel sales.
Yet it’s also common for companies to start with PIM believing they’ll get DAM functionality within the same platform—and that’s not the case.
If a PIM software claims to have “digital asset capabilities,” that means the platform can house and syndicate digital assets. Often called “DAM lite,” it won’t fully address the nuances of assets and metadata needed across a complex omnichannel world. For that, you need a standalone DAM system.
Regardless of where you decide to start, it’s a good idea to approach it with open eyes. DAM capabilities included within a PIM system are unlikely to scale to your digital asset needs.
Benefits of investing in PIM software first
PIM may be more critical when you have significant compliance or regulatory data required to sell your products. In some industries, that type of data might be more critical (or more of a bottleneck to selling) than having a robust visual media library.
PIM is made to deal with complex layers of data. If ill-managed data is holding you back from selling products, tackling PIM before DAM will move the needle faster. And when the most immediate need is to be truly omnichannel or improve SEO, PIM will provide faster ROI in those areas.
Benefits of investing in DAM software first
Some industries rely very heavily on visual media to sell products. (Think e-retail.) A footwear company might need great images to sell shoes more than it might need pages of technical specifications.
DAM is often a critical part of the foundation for successful syndication through PIM. How can you syndicate product information to sell products if you aren’t first linking the latest and greatest images and graphics to the right products, in the correct formats, for the proper channel?
DAM also reduces legal risk, in terms of rights management for talent and licensing contracts. If a company uses talent in product photo shoots or stock images for marketing, not carefully tracking usage rights can pose a vulnerability. DAM systems are inherently designed to mitigate risk around licensing and contracts, protecting companies from inadvertent violations.
A DAM system will also effectively address brand consistency. If an organization is looking to better manage or maintain how its brand is represented, DAM is a wise investment. Brand consistency can be especially critical during times of mergers or acquisitions.
5 ways to evaluate whether to invest in PIM or DAM first
We won’t leave you hanging with “it depends.” Here are five areas to evaluate and factor into your PIM or DAM investment decisions.
1. Expectations and pain points
Your customers and their buying experiences should be at the core of every investment decision. Start by understanding their needs on a deeper level. Conduct qualitative and quantitative research to uncover what experiences matter most.
Then, audit your data and internal processes. Where are the biggest gaps or bottlenecks to delivering a great shopping experience? What’s holding your business back from selling more or selling faster? What frustrates your users?
Finding answers to these questions—and mapping insights back to your strategy—will help guide your decision on whether to invest in PIM or DAM first.
2. Industry dependencies
Does your industry have strict compliance requirements that you need to track? For example, industrial manufacturers often have strict requirements for emissions, waste disposal, and resource use requirements, with oversight from bodies like the EPA. With high stakes such as fines and legal action, managing data for compliance is often an indicator for prioritizing PIM.
3. Channel goals
Are you trying to launch ecommerce? Sell on certain marketplaces like Amazon? This is where your channel goals come into play.
Let’s say you want to sell on Amazon. Sending digital assets in the wrong size or format can result in a rejected listing, costing even more time, resources, and frustration. If you struggle to manage images across thousands of SKUs and multiple channels, you may want to prioritize DAM first.
On the other hand, there are also certain product data points that you’ll need to syndicate (i.e., automate) across channels. Whether B2C or B2B, customers rely on accurate, consistent, and complete product data to make a purchase. So, if you have significant data gaps, you may want to prioritize PIM first.
4. Leadership priorities
When in doubt, start where you are most likely to succeed. On a practical level, it helps to determine which project is more likely to get buy-in from your leadership team or generate the quickest ROI wins. Think about what’s on their radar. If you already have traction in support for PIM or DAM, run with it. Once one system is in place, you can argue for the next system—with the end goal being a full integration between the two.
5. Complexity
Overly complex implementations can stall progress. The goal is to find the most direct route to success, setting yourself up for easy iteration. If one system offers a simpler path, it may be best to start there.
You also want to account for putting the right people and processes in place. Example: PIM requires a cross-functional data governance committee, while DAM requires librarians who can meticulously organize, catalog, and oversee digital assets. If one area seems more manageable to support, that may reveal your answer.
Can you implement PIM and DAM at the same time?
At this point, you may wonder: What if I want both systems simultaneously?
Remember that even one implementation is a significant undertaking. Two systems at once would require even more corporate focus and resources. It’s tricky. That’s why most of our clients focus on one implementation at a time, taking a phased approach.
However, it’s possible, and sometimes even recommended —and the approach has its pros. If you implement PIM and DAM at the same time, you can minimize the risks of decisions made in silos. Your strategy, governance, and processes will all align from the start.
Case in point: One of our retail clients is taking a holistic approach by conducting PIM and DAM discovery simultaneously. They’ve had DAM for a while but never a PIM. Lacking a single source of truth for product data led to plenty of pain points, especially around data quality and syndication—making a PIM an obvious need.
Yet, as they considered their challenges, they became more aware of how PIM and DAM intertwine to drive effective PXM. They’ve opted for a unified approach guided by Ntara’s PIM and DAM experts.
Another real-world example
Here’s another example of what goes into a PIM or DAM first decision:
For one of our CPG clients, product data was an issue—but we found greater urgency in managing digital assets. For example, with baby models in their products, thousands of images came with complex, high-stakes contracts—where could each photo be used, for how long, and what happens when contracts expire?
They opted for a modern DAM implementation to tackle the intricate and critical metadata and rights management. Today, the new DAM integrates with their legacy PIM, setting the stage for a future PIM platform upgrade when the time is right.
Our recommendation
There is much that goes into the PIM or DAM decision. We recommend analyzing early on, finding the quick wins, and evaluating how each system fits within the bigger picture of PXM.
Ntara can help you evaluate your specific needs, ask the right questions, and build the ideal roadmap for your particular scenario.
If you have questions or need help with any of the steps above, give us a shout.