The price of a product is an important consideration when making a buying decision. Customers throughout their purchase funnel go through many levels, but pricing is one the aspects almost constant at every level. If the price of a particular product is very high, there are chances of a business losing significant sales. On the other hand, if the prices are set extremely low, the business will lose profit/ revenue affecting the health of the business. Now, nobody wants that to happen in any industry. Advanced technology has empowered the customers to analyze the price in real-time offered by different sellers. A business needs to set competitive prices for winning new customers. It is here that the pricing intelligence platform comes into the picture.
Today, in this blog, we will go through the distinguished benefits of a pricing intelligence platform in detail.
So, let us dive right into it.
What is Price Intelligence?
Price intelligence is the ability to track, monitor, and analyze the pricing data along with the competitor’s prices within your market landscape. It helps in making an informed decision which leads to data-driven pricing performances. To begin with, it is crucial to understand the market pricing data and accurate pricing information as the price of any product is one of the main deciding factors for sales. The assumption is that the market is price sensitive and is going to compare many similar products for price, style, longevity and features.
Now, the price of the products always keeps on fluctuating and hence it is necessary to analyze the relative price position to keep up with the price changes. You might wonder why. Well, it helps in incorporating a dynamic pricing strategy for your product. However, a business doesn’t lower its prices just because a competitor did! It is important to collect competitive price intelligence data for making the best decision and achieving a competitive edge over others.
Investing in a good pricing intelligence platform like WebDataGuru can make all the difference for any business.
Features of Price Intelligence
Here’s a look at some of the features of Competitive our Pricing Intelligence platform and why should you use it to gain a competitive advantage over others:
1. Optimizing Prices: Pricing intelligence offers a list of competitors in the marketplace along with their prices (with or without shipping). They offer information on price change history and product performances across the eCommerce market. Now, as an online retailer, you might be interested in knowing the competition and their tactics for better marketing. Furthermore, the platform provides in-depth analysis and comprehensive insights on the pricing and its impact which enables you to make better pricing policies. And as discussed earlier, pricing plays a vital role in customer’s decision making process. So, this helps giving the nudge in the right direction which is toward your product. A smart move isn’t it? Our pricing intelligence platform uses the most advanced tools to obtain information from the internet.
2. Reporting: It offers in-depth insight into the demand for the products and price elasticity. Real-time reports are delivered by the platform in order to make decisions that are relevant and efficient enough to drive sales. Not just that, the reports can be understood by anyone. Let us elaborate. For example, you are a shoe manufacturing company and you don’t have a big team of people. So, even your employee with no background in AI can understand the reports. It is that simple. Basically, the reports are provided in a summarized format where key points are highlighted. So, investing in a good platform like WebDataGuru is the right choice for your business. Don’t miss out on that!
3. Competitive benchmarking: With the help of price intelligence data, a business can quote appropriate prices. It will not only help in boosting the sales of the product but also help in generating new customers for the business. Allowing businesses to carve out a strategy that helps them stand out in the competitive market is what our platform does. Competition is present in every industry, but the eCommerce market is significantly cut-throat. So, you need a plan that works wonders for your business and adapts according to the constantly changing market demands.
4. Product Optimization: Whatever the price may be, the product matters the most. Once the customer buys your product or says any product for that matter, the experience of the product will ensure a repeat purchase. If the product is of poor quality and not driving results, then the customer is not going to purchase it again. So, the pricing platform helps you optimize your products with respect to the features and after sales service, etc. Moreover, the product detail page on your website or on any eCommerce platform can be optimized for improving the performance on the search engines platforms such as Google and Bing. This optimization can be achieved with the help of correct keywords, descriptions, images, customer reviews, ratings, product availability, and competitive prices. So, a pricing platform can help you achieve great heights in your marketing channels without much of a hassle.
Significance of Price Intelligence for E-commerce and Manufacturers
Now that you have gained an insight into the features of price intelligence and how it works, it’s time to have a look at the importance of the pricing intelligence platform.
1. Identifying Sale: Pricing intelligence plays a crucial role in determining the sales and profitability of a business. As mentioned above, the business needs to analyze the market pricing data for understanding the competitive landscape in a better way and price or reprice the products accordingly. Buyers never make the buying decision right away. In fact, they go through various stages of the buying journey before making the final purchase. It reflects the significance of offering competitive prices for winning the sales game and transforming today’s smart shoppers into your customers.
2. Tracking Competitor Prices: The biggest e-commerce platforms such as Amazon, Walmart, etc. are monitoring the prices of products constantly in real-time and repricing the products accordingly for staying ahead of the competition. Businesses, retailers, manufacturers, and e-commerce portals can track competitor prices with the help of a pricing intelligence platform and optimize the pricing strategy proactively. It consists of repricing and dynamic pricing. The best pricing tools are able to offer pricing data along with insights from the marketplace, direct-to-consumer sites, and SERP.
Price Intelligence Process
The process of price intelligence is very simple. Let’s have a look:
1. Identify your competitors in the marketplace. It is important not only from the viewpoint of pricing strategy but also from the viewpoint of developing marketing strategies.
2. Scrap pricing data from these competitors as identifying them alone is not enough. It is equally important to get the real-time pricing data of these competitors.
3. The next step after the collection of data is to analyze it. You need to look for patterns in the competitor’s pricing data and gauge the habits and practices to gain an insight into the competition and competitive landscape.
4. After the data analysis, it is time to make informed decisions on pricing strategies with the help of data-driven insight.
Challenges of Price Intelligence
As the competition increases in the marketplace, pricing intelligence can come across four major challenges in offering the desired solution and insight to brands, retailers, and manufacturers.
The challenges are as follows:
- Variant level product matching
- Conducting automated repricing
- Collecting pricing data globally from various platforms
- Large-scale data collection and monitoring
What is Dynamic Pricing?
Dynamic pricing is one of the important pricing strategies which businesses use for selling products to different groups of customers. It is based on the strategy of supply and demand focusing on the demand aspect. It is also termed as demand pricing or time-based pricing.
However, dynamic pricing as a concept is underutilized. It offers dramatic pricing benefits to a business when practiced the right way. Unlike the static pricing strategy, dynamic pricing optimizes profit by working at different price points based on the market demand. The dynamic pricing strategy is popular in different industries such as transportation, professional sports, e-commerce, hospitality, and retail.
Boost Your Sales in the Right Direction With us
Price intelligence can help any business irrespective of the industry. It is beneficial for a business to invest in a top pricing intelligence platform like ours. Such tools can help you in getting ahead of the competitors in the marketplace. You can find various price intelligence platforms by reputed companies designed for meeting diverse business needs. You can choose the platform depending on the features required by your business. Our system is tailor-made for every industry.
With the help of our software, you can find the competitors and track high performing prices in real time. A business can make data-driven and informed decisions for staying competitive. It helps in tracking and monitoring the prices, repricing the products, and several other advantages.
Want to start gaining with WebDataGuru? Reach us and find out what your can get by partnering with us!