A product’s price is an essential factor that plays a huge role in the purchasing decision of a customer. Surveys worldwide have revealed that buyers list price as the second important factor behind their choice to buy or not buy a product.
A wrong price can hinder sales of a product that’s otherwise of excellent quality. Pricing intelligence refers to a proactive approach to modifying your online prices and offering the best ones to people through a dynamic pricing strategy.
With a good AI-powered online pricing intelligence platform, you can stay on top of the market by setting alerts to and monitoring price changes across crucial categories and SKU’s.
Why Is Price Intelligence Significant?
Price intelligence is critical because retail pricing is highly competitive and dynamic. Today, your customers are more sensitive to price. They have the ability to undertake a thorough comparison of prices through their smartphones.
Buyers can view products online or offline and then check if they can find a better price from a different channel. Do you know that multiple mobile apps are being designed particularly for people to compare prices? A majority of retailers provide price-match policies to remain competitive.
Additionally, the increasing scale of eCommerce implies that prices online change much more quickly than at brick-and-mortar retailers. In fact, Amazon changes the costs of its products every few minutes.
In such a scenario, an online pricing intelligence tool that allows you to set accurate prices, track products across 25+ countries, and offer customized reports proves extremely helpful. You can thus track the changes in prices that your competitors make and adjust yours accordingly.
What Are the Advantages of Competitive Pricing Analysis?
A deep pricing analysis allows you to gain an edge over your competition and find opportunities to enhance your sales.
With robust competitive pricing analysis software, you can get near-real-time insights on products, brands, and categories that your rivals promote, including discounts, duration, and campaign frequency. Here are some advantages of competitive pricing analysis.
- By tracking the price trends of your competitors and in the market, you gain a real-time overview of the market. It enables you to make accurate pricing decisions for your products.
- On products with high demand, the profit margin can become a bit narrower because of greater competitiveness. But you need to ensure that you aren’t falling into a loss by reducing the prices too much.
When you incorporate competitive pricing analysis, you know what position your business is at in comparison to the competitors. On this basis, you can determine whether reducing the prices more will benefit you or not.
- Pricing analysis helps you recognize the best practices and techniques that your competitors are following. It also helps you to identify the advantages you have over your competitors. You can then enhance your pricing techniques accordingly.
- Pricing analysis also lets you gain an understanding of price elasticity. You’ll thus be able to pinpoint opportunities and threats in the market. If you desire to get ahead of your competitors, staying updated about the current prices is crucial.
Competitive pricing analysis helps you gain greater knowledge in all these areas. Software for online pricing intelligence for retailers correlates your and your competitor’s promotions with sales volume fluctuations.
It helps you to pinpoint precisely where you should focus your promotional expenditure. You can optimize your marketing by monitoring the seasonality of product types, product attributes, and brands featured in your competitors’ promotions.
Thus, price intelligence allows you to improve your pricing strategy in numerous ways. All this helps you to serve your customers better than before.