{"id":46550,"date":"2017-08-23T23:00:38","date_gmt":"2017-08-23T23:00:38","guid":{"rendered":"https:\/\/www.akeneo.com\/blog\/pim-roi-part-3-2\/"},"modified":"2024-07-04T06:51:02","modified_gmt":"2024-07-04T06:51:02","slug":"pim-roi-part-3","status":"publish","type":"post","link":"https:\/\/www.akeneo.com\/fr\/blog\/pim-roi-part-3\/","title":{"rendered":"PIM ROI #3: Calculating Your Actual PIM ROI"},"content":{"rendered":"       \n  \n<section id=\"hero-block_5f3f40551367c5ec9e734ff086408281\" class=\"hero  py-0\">\n            <div class=\"container\">\n            <div class=\"row\">\n                <div class=\"col-12\">\n                    <div class=\"hero-inner hero-inner-blue\">\n                        <div class=\"row align-items-center g-3\">\n                            <div class=\"col-lg-6\">\n                                <div class=\"hero-content\">\n                                                                            <div class=\"hero-tags\">\n                                            <span class=\"tag tag-white\">Product Experience<\/span>\n                                        <\/div>\n                                                                        <h1 class=\"hero-title\">PIM ROI #3: Calculating Your Actual PIM ROI<\/h1>\n                                    <div class=\"hero-text\">\n\n                                        <p>How can Akeneo PIM increase your bottom line? This final blog post in our three-part series shows how to calculate the return on investment (ROI) of a&#8230;<\/p>\n                                    <\/div>\n                                <\/div>\n                            <\/div>\n                                                            <div class=\"col-lg-6\">\n                                    <div class=\"hero-image\">\n                                        <img decoding=\"async\" src=\"https:\/\/www.akeneo.com\/wp-content\/uploads\/2022\/01\/Akeneo-PIM-ROI-Part3_Twitter_Banner.jpg\" class=\"attachment-full size-full wp-post-image\" alt=\"\" \/>                                    <\/div>\n                                                                <\/div>\n                        <\/div>\n                    <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n  \n        <p class=\"justify\">How can Akeneo PIM increase your bottom line? This final blog post in our three-part series shows how to calculate the return on investment (ROI) of a Product Information Management (PIM) system. Our <a href=\"https:\/\/www.akeneo.com\/blog\/pim-roi-part-1\/\">first<\/a> blog post focused on the savings associated with reducing product management overhead; the <a href=\"https:\/\/www.akeneo.com\/blog\/pim-roi-part-2\/\">second<\/a> showed how PIM contributes to higher revenue through lower returns and increased sales. These calculations demonstrate the bottom line value of a PIM.<\/p><div class=\"mb-2\"><div class=\"press-copy\"><p class=\"justify\">The table below shows how productivity savings, conversion improvements, reductions in return rates, and increased margin from higher revenue yields a total of $140,629 in gains the first year. Depending on the complexity of your project, you can quickly reach \u00a0financial breakeven very soon, accelerate \u00a0market expansion and offers can significantly leverage your Return on investment<\/p>\r\nAssumptions:\r\nTable 3.1 shows the entire ROI equation over the three-year period based on calculations from the two previous posts.\r\n<ul>\r\n \t<li>Productivity savings are shown in <a href=\"https:\/\/www.akeneo.com\/blog\/pim-roi-part-1\/\">PIM ROI Blog post #1<\/a><\/li>\r\n \t<li>Sales and conversion data are shown in <a href=\"https:\/\/www.akeneo.com\/blog\/pim-roi-part-2\/\">PIM ROI Blog post #2<\/a><\/li>\r\n \t<li>Retail average net profit shown at 3% (see <a href=\"https:\/\/pages.stern.nyu.edu\/~adamodar\/New_Home_Page\/datafile\/margin.html\" target=\"_blank\" rel=\"noopener noreferrer\">Stern.nye.edu<\/a>)<\/li>\r\n<\/ul>\r\n<div class=\"table\">\r\n<div class=\"responsive-table\"><table>\r\n<tbody>\r\n<tr>\r\n<td><\/td>\r\n<td>Year 1<\/td>\r\n<td>Year 2<\/td>\r\n<td>Year 3<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Productivity Savings per year<\/th>\r\n<th>$12,500<\/th>\r\n<th>$27,917<\/th>\r\n<th>$43,056<\/th>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"4\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>Increasing Revenues of a PIM by<\/strong><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Decreasing Returns<\/td>\r\n<td>$400,000<\/td>\r\n<td>$400,000<\/td>\r\n<td>$400,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Increasing the conversion rate<\/td>\r\n<td>$3,870,968<\/td>\r\n<td>$3,870,968<\/td>\r\n<td>$3,870,968<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Expanding markets and offers<\/td>\r\n<td>Intangible<\/td>\r\n<td>Intangible<\/td>\r\n<td>Intangible<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Total of additional revenues<\/th>\r\n<th>$4,270,968<\/th>\r\n<th>$4,270,968<\/th>\r\n<th>$4,270,968<\/th>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"4\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Average net profit margin<\/td>\r\n<td>3.00%<\/td>\r\n<td>3.00%<\/td>\r\n<td>3.00%<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Benefits<\/th>\r\n<th>$128,129<\/th>\r\n<th>$128,129<\/th>\r\n<th>$128,129<\/th>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"4\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Benefits + Savings<\/th>\r\n<th>$140,629<\/th>\r\n<th>$156,046<\/th>\r\n<th>$171,185<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table><\/div>\r\n<\/div>\r\n<em>Table 3.1 \u2013 Summary of cost savings and revenue increases enabled by the use of PIM at a company with 30,000 SKUs in year one.<\/em>\r\n<p class=\"justify\">As shown in the first two blog posts, an eCommerce business selling 30,000 SKUs could save $12,500 by improving product management productivity with PIM. As the product list and sales channels expand, \u00a0productivity savings increase in years two and three, as shown in Table 3.1 above. The PIM delivers additional revenue increases by improving on-site conversions and reducing merchandise returns.<\/p>\r\n<p class=\"justify\">\u201cR\u201d is the cumulative gains from productivity savings and increased revenue. The average net profit margin is 3% (see <a href=\"https:\/\/pages.stern.nyu.edu\/~adamodar\/New_Home_Page\/datafile\/margin.html\" target=\"_blank\" rel=\"noopener noreferrer\">Stern.nye.edu<\/a>). In year one, the $12,500 in productivity gain, added to the $128,129 in increased margin from higher revenue, yields a total of $140,629 in gains.<\/p>\r\nWhile omitted from our calculation due to wide variances across industries, PIM is also able to facilitate revenue growth by simplifying expansions into new market and product offerings.\r\n<h3>The Math of PIM ROI<\/h3>\r\nROI is a number determined by the following formula:\r\n<p style=\"background-color: #eceff2; text-align: center; padding: 20px;\"><strong>ROI<\/strong> = (Net Profit \u2013 Cost of Investment) \u00f7 Cost of Investment *100<\/p>\r\nAs an example, a Net Profit of $25 on a Cost of investment of $20, yields an ROI of 25%, as shown by the equation: ($25 &#8211; $20)\/$20 = $5\/$20 = 25%\r\n\r\nYour return (The \u201cR\u201d) in this case equals your PIM efficiency savings and increased profits from PIM. Your investment (The \u201cI\u201d) is the total cost of ownership of the PIM system.\r\n<h3>Akeneo &#8211; Smarter Design, Risk-free, Maximum Value, and Seamless Integration:<\/h3>\r\nWhat makes Akeneo PIM the superior choice? Low total cost of ownership is just the beginning.\r\n\r\n<strong>Akeneo removes the risk from your PIM decision<\/strong>. With Akeneo PIM, you can try the Akeneo Community Edition as a free proof of concept before investing in the Enterprise Edition. With first-hand system knowledge and experience, you understand how the system works with your product data &#8211; the risk simply goes away.\r\n\r\n<b>Akeneo is more cost efficient by design. <\/b><span style=\"font-weight: 400;\">We\u2019re open source. A traditional system is a closed box; you pay expensive licensing fees and must work with what\u2019s inside. With Akeneo PIM, you only invest in functionality that solves your unique challenges. \u00a0<\/span>\r\n\r\n<strong>Akeneo PIM delivers maximum value for your budget at significantly lower costs<\/strong>. <span style=\"font-weight: 400;\">We\u2019re open source &#8211; so the base cost of Akeneo is zero.\u00a0<\/span>With Akeneo PIM, you only pay for what you choose. And that means better ROI and higher growth, year after year.\r\n\r\n<strong>The Akeneo Enterprise Edition is smart design for seamless integration<\/strong> into current product enrichment workflows. Rather than clumsily trying to build new workflows to match a proprietary PIM tool, Akeneo enables easier adoption, markedly better user satisfaction, and greater efficiencies.\r\n\r\nThe Akeneo Enterprise Edition includes the standard features of the Akeneo Community Edition plus:\r\n&#8211; Advanced rights management\r\n&#8211; Validation workflow\r\n&#8211; Versioning and publication\r\n&#8211; Rules engine\r\n&#8211; Product asset manager\r\n&#8211; Teamwork Assistant\r\n\r\nThe Akeneo <strong>Enterprise Edition<\/strong> is a customizable PIM system, designed for seamless integration across your merchandizing workflows, to deliver maximum ROI.\r\n\r\nWant to see how PIM could decrease costs while increasing revenue for your organization?\r\nReady to learn more about Akeneo PIM integration?\r\nInterested in a demo of Akeneo Enterprise Edition?\r\n\r\n<a href=\"https:\/\/www.akeneo.com\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\">Contact us<\/a> for a free consultation. Not ready to talk anyone yet? Try taking Akeneo for a <a href=\"https:\/\/www.akeneo.com\/demo\/\" target=\"_blank\" rel=\"noopener noreferrer\">test-drive<\/a>.\r\n\r\n<a href=\"https:\/\/www.akeneo.com\/blog\/pim-roi-part-2\">&lt;&lt; How Product Information Management Makes You Money &#8211; Part #2<\/a><\/div><\/div>  ","protected":false},"excerpt":{"rendered":"<p>How can Akeneo PIM increase your bottom line? This final blog post in our three-part series shows how to calculate the return on investment (ROI) of a<\/p>\n","protected":false},"author":2,"featured_media":17484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[575,576,796],"class_list":["post-46550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PIM ROI #3: Calculating Your Actual PIM ROI | Akeneo<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.akeneo.com\/fr\/blog\/pim-roi-part-3\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PIM ROI #3: Calculating Your Actual PIM ROI | Akeneo\" \/>\n<meta property=\"og:description\" content=\"How can Akeneo PIM increase your bottom line? 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