For staying ahead of your competition, pricing intelligence software is critical in today’s retail world. It involves monitoring, tracking, and analyzing price trends to understand the market and make informed pricing decisions across various product categories efficiently. And since product prices change constantly, you too need to keep a check on your prices in relation to the price trends in the market in real-time.
Price intelligence enables a proactive approach to change your prices across your product categories to always offer the best prices in the market using a dynamic pricing strategy.
There are 10 major reasons why all top retailers today are using price intelligence to stay ahead. You can reap these benefits for your business too:
- Outperform Your Competitors
Knowing where you stand as compared to your competition can help you improve your strategy even further. With the data you receive, you will have the opportunity to keep track of your competitors stock-outs, promotions, and product assortment along with the prices.
This will also help you stay on top of product trends and in turn accordingly stock your inventory with trending products.
- Track Trends In The Marketplace
Knowing the minimum and maximum prices of the products in the market will give you important insights about your price elasticity. You will also be able to spot greater opportunities as well as threats lurking in the market. If you intend to stay on top of the competition, staying abreast of the latest prices is extremely important. And pricing intelligence software helps you do just that!
- Refine Your Pricing Strategy
It so happens that sometimes you may be selling a product for a much lesser price bringing in lesser profits than what the market could actually offer you. This is where pricing intelligence software comes in. It identifies such products and you can then change those prices to still be lowest in the market but maximize your profit margins.
- Improve Customer Satisfaction and Build Customer Loyalty
If you recall your most satisfying shopping experience it would most presumably be when you spent the least amount of money and purchased more. Customers are happy with buys that are easy on their wallet and will repurchase from the same seller if they have a good buying experience and feel like they have gotten value.
This is where understanding pricing trends across your products and your competitors help you zero-in on the best price to offer to the customer. Furthermore, by giving your customers the best costs consistently, you can retain your customers for a long time. To put it plainly, you build consumer loyalty.
- Generate New Customers
Realizing when to change costs so as to offer more competitive pricing or get higher profits makes a huge difference. You will have the opportunity to settle on increasingly powerful and beneficial pricing choices, and in the meantime negotiate a better deal with your suppliers. And you can achieve this by being up-to-date on price trends.
- Improve Product Search Performance
Aside from page optimization, website content, navigation, keyword research, etc. the cost of your item can be responsible for gaining visibility when customers do an online search.
Amazon utilizes custom AI-based price intelligence platform to decide which products should appear in the buy box, and which products should show up on the first page, and based on the calculated predicted conversion rate. You can leverage this same capability with AI-based pricing intelligence software.
- Enhance Your Google Shopping Campaigns
If one of your main business goals is to optimize your Google shopping campaigns then using a pricing intelligence software becomes indispensable. This software automatically sends a customized feed to Google Shopping based on which products you are actually competing for. And the rest of the products are ignored by the tool. The software does this automatically on a daily basis.
- Get Smart Data using Analytics
Pricing intelligence software is the answer for retailers that need to stay up-to-date about their competitors’ moves without doing all that data collection and tracking manually. This is how using price intelligence software will save you both time and money. The product price data will be updated automatically so you can make the best pricing decisions in order to receive maximum profits.
- Inventory Management (Avoid Surplus and Out-of-stock conditions)
When prices of a particular product are being reduced in the market, you don’t want to be left with excess stock. Because then you will be forced to sell the excess at lower margins, even zero margins sometimes in order to liquidate your stock. But with pricing intelligence software, you can offer competitive prices by keeping track of your competitor’s price and inventory and be able to maximize stock turnover.
- Boost Sales and Increase Your Market Share
As mentioned earlier, the cost of a product is one of the main components that your customers check when they decide to buy a product. So if you want to boost your sales and make sure that the customers choose you over your competitors then you need to offer a price that they just can’t refuse.
You can do this using the price monitoring feature offered by most pricing intelligence software. Stay up-to-date on what offers, discounts, rates, and deals your competitors are offering. And use that data to offer the most competitive price in the market while also meeting your profit goals.
This way your competitors don’t stand a chance against you and you will end up with a higher market share. Smart pricing using pricing intelligence software will give you profitable results.
Final Thoughts
It’s a war of costs in the eCommerce business. On the off chance that you commit an error in pricing your products, you may need to endure a drop in sales and margins and in the long run lose your customers’ trust.
The right pricing intelligence software can help you improve your sales and give you an edge over your competitors in an automated and easy-to-integrate way. For the competitive eCommerce retailer, now is the time to invest in price intelligence software so you can grow using a profitable pricing strategy.
About Intelligence Node
Intelligence Node is a real-time retail price intelligence platform that empowers retailers and brands to grow profitability and margins using AI and ML data-driven competitive insights.
Please visit our website and on Twitter @bigdataNODE.
