There’s a lot more to retail nowadays than just having the better product and flash sales during the holidays.
That method simply doesn’t work as effectively anymore. This means that if a retailer wants to be ahead of the competition, then there’s a lot of work that has to be done in order to stay ahead of the curve.
That’s where competitive pricing intelligence comes in.
But what exactly is it, and how does it help?
What Is Competitive Pricing Intelligence?
In plainspeak, Competitive pricing intelligence is the detailed analysis of past and present sales data, along with the pricing details of competitors, to ensure that a retailer can price their products competitively across any and all retailers that stock the same product on their website.
This means that a retailer no longer has to scour through hours of data and websites to create a competitive pricing strategy for their products. This is especially useful when a retailer has hundreds of products that they want to optimise prices for, saving hundreds of man hours in time, while still keeping the price as competitive as possible.
How Does It Help?
In the world of retail, having the right price can make or break your sales. Customers always want the cheapest possible product. If that means going to a different retailer, then they’ll have no qualms about doing that. There’s no loyalty among customers, since they always want the most for their money.
This makes it all the more difficult for retailers to retain their customers, unless they’re working out on a pricing strategy to beat their competitors and stay ahead of the curve.
Competitive pricing intelligence helps do that. Such retail intelligence software ensures that you’re not just staying relevant, but also staying ahead.
But What About Large Volumes?
One of the best things about competitive pricing intelligence is the fact that you don’t have to base a pricing strategy based on a small data set of products. It can scour through the entire internet and find a list of prices for the same product, ensuring that you can determine a proper pricing strategy for every product in your catalog. This means that you don’t have to go through each and every product on your catalog.
If you have less competition on certain products, it can also help you price them higher, getting a higher profit margin, while keeping your customers coming back for the highly demanded products, ensuring that they can shop for everything at one place without having to worry about where to get the best prices.
What Does This Mean For Retailers Who Use It?
For the retailers who actually use competitive pricing, this means that they no longer have to worry about which competitors are offering products at competitive prices. This technology automatically finds all of that and also determines what would be the best prices to compete against those prices.
This also helps monitor customer habits in real time, ensuring that the buying habits of the customers are tracked as quickly as possible, developing new strategies to maximise their sales.
After all of the sales are done, the software can also be used to generate reports and analytics, ensuring that future trends and possible avenues can be exploited for higher profits.
This may seem like a lot of work for very little benefit, but when you’re in the business of retail, dealing with hundreds to thousands of products or even more, this can mean a lot between retaining hundreds of customers, to losing them to another competitor who’s using the same technology against you.
Competitive pricing intelligence is definitely here to stay. It’s proven to give retailers who use it an advantage over those who don’t use it. It can mean the difference between having a business that breaks even, to one that actually thrives and establishes a brand name for itself.