Hacking ecommerce growth using pricing intelligence
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Pricing intelligence refers to understanding market pricing intricacies using data mining to optimize pricing strategy compared to competitors. It helps businesses set optimal prices for maximum revenue and helps buyers find lowest prices. It is important due to increased consumer price sensitivity, aggressive competition that changes prices 50,000 times monthly, and increased price transparency from comparison sites. Retailers use pricing intelligence to adjust prices relative to competitors, optimize paid search campaigns, and assist employees to boost in-store sales. It involves data discovery, extraction, quality checks, and analytics to optimize pricing, improve in-store experiences, boost online conversions, and enable repricing.
Hacking ecommerce growth using pricing intelligence
- 3. It refers to the awareness of market-level pricing intricacies and the impact on business, typically using modern data mining techniques.
- 4. It’s used by companies looking to optimize their pricing strategy compared to their competition. It’s also used by buyers who want to optimize their purchasing strategies.
- 6. #1 Increased consumer price sensitivity It helps businesses to set prices at the exact best point where supply and demand produce the optimum revenue.
- 7. #2 Increased aggressivenes s from competitors Retailers are using pricing intelligence combined with dynamic pricing tools to beat their competitors and turn inventory at an accelerated pace.
- 8. Retail giants change prices almost 50,000 times per month. Source: risnews
- 9. #3 Increased price transparency There has been a significant rise in the number of price- comparison websites/apps that help consumers ensure that they are getting the lowest price.
- 11. Price intelligence is used by retail organizations to adjust prices so that retailers are right-priced relative to their competitors.
- 12. It is used to shape the pricing strategy, to optimize paid search campaigns, and also by the employees to help boost in-store conversions.
- 13. Winners and their peers tend to agree that Pricing Intelligence is one of the most valuable technology to have in place. Source: RSR Research, February 2017
- 14. __________Steps involved in Pricing Intelligence
- 15. #1 Discovery Identifying the right sources to extract data from the web. Mainly, the product pages on various competitor sites.
- 16. #2 Extraction Process of gathering the price, shipping information and other available data from the web using automated web scraping services.
- 17. #3 Measurable data quality Checking accuracy of the extracted information regularly. Accuracy of data is often high when high- caliber web scraping services are used.
- 18. #4 Reporting & Analytics Deriving actionable insights from the data that has been gathered.
- 20. #1 Optimize pricing strategy Retailers are using price intelligence to gain a better understanding of their price position in the market to make strategic pricing changes according to real-data.
- 21. #2 Improve in- store experience Several retailers have taken price intelligence into their stores and empowered their in- store associates to ease the process of price matching requests.
- 22. In March 2014, Walmart launched Savings Checker. It allows consumers to check prices and get back the difference as a Walmart Rewards eGift Card if another local retailer has any of the advertised products at a cheaper price.
- 23. #3 Boost pay- per-click conversion rates Retailers are using price intelligence data in their paid search campaigns to throttle their ad spend based on price position relative to their competitors and in- stock availability.
- 24. This application can result in up to a 64% increase in conversion rates according to a study.
- 25. #4 Repricing With the data that retailers find through price intelligence, they can effectively reprice in line with competitors.
- 26. With the rise in competition in the retail industry, more and more retailers intend to engage in competitive price intelligence in the next 12 months.
- 27. Today’s customer has access to more information than anytime in the history. Comparing prices between competing vendors takes just a few keystrokes.
- 28. In such an era, it becomes all the more important to collect, mine and manage competitive intelligence data.
- 29. This eventually leads to increased market share by ensuring that the pricing is set correctly, boosting revenues and being responsive to the competitors’ actions.
- 30. PromptCloud offers fresh and custom data feeds from the web to ensure that you have a strong foundation to build mechanisms for dynamic pricing. Let us know your requirements at sales@promptcloud.com to enhance your pricing intelligence strategy.