Pricing for the New Customer – Competitive Pricing Data
Customers use price comparison websites and apps every day, to compare products and prices across stores and channels, to get the best value. Retail organizations have used similar solutions too, to gather pricing data from competitors and integrate it into their own pricing strategies. Now, technology is allowing retailers the ability to collect and analyze competitive pricing data quickly and ensure accuracy and timeliness. The price has never been so relevant and important in the marketing mix.
Maximizing margins are the primary goal of pricing strategies for 46% of retailers, but pricing intelligence is not as simple as collecting data from your competitors and matching their prices, it’s how you act on that information and integrate it into your own pricing strategy that makes the impact. According to How Retailers Can Win the Pricing Game, a study released by RIS in June 2014, retail organizations are integrating competitive pricing data into their strategies in a number of innovative ways to stay competitive- it’s not just about having the lowest price.
Competitive pricing solutions help retailers find margin opportunities for growth, for example the chance to quickly put a product on promotion that your competitors currently have on full price. It allows retailers to be flexible with their pricing, reflecting what is going on in the market, match competitor’s pricing to retain customers and loyalty, and gain valuable insights into their positioning and brand identity.
The ability to collect and analyze pricing data has given retailers an opportunity to make significant changes to primary items across key markets. The demographics of a market changes from county to county. By being able to collect pricing data at the region, state, county or even store level, and trust that it is accurate and up to date, retailers can create the perfect shopping experience for their target customers.
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