Just like real estate is all about location, education is all about quality and food is all about taste, e-commerce is all about price. Yes, your product and services need to be exclusive, and the overall user experience should be great, but price optimization is still the most important factor to determine your retail success. That is why; all modern-day brands need a winning competitor price monitoring strategy to outcompete their rivals.
Why is it Important to Spy on your Competitors?
Online shopping is best defined as comparison shopping. Customers either browse different portals or use a comparison site like SlickDeals or Google Shopping to pull out offers by different brands and display it all together in a single tab so they can find the best deal. If your prices and promos are not better than your competitors, you end up losing a loyal customer because shoppers tend to buy from the same store all the time.
In the virtual world, you are competing against everyone therefore, you need to be aggressive.
Competitor price monitoring helps you keep tabs on user perceptions, prices, products and promos. There are several tools available in the market that can help you:
- Alert you to market trends as they occur
- Collect and analyze user data from different sources to establish your position in the market
- Spot better opportunities
- Make the right changes to your price range
- Take relevant action to boost sales and maximize margins.
- You save a lot of time because apps automate the entire process.
- You can execute the best pricing strategy to attain profits.
- You are up-to-date with the market trends so you know exactly when your competitors will change their prices or promotional offers.
- You know how to react in different situations.
- New retailers often make mistakes.
However, you can rely on competitor price monitoring tools to scrap out relevant data for you. This way, you can re-price your products and automate vital marketing algorithms for making effective decisions.