If you are a retail business owner, then this blog is for you. For staying ahead in the tough competitive market, it is essential to have a complete understanding of what your key competitors are doing with their pricing strategy. For any business, having a quality data can be a crucial aspect of the marketing strategy. However, only a few businesses have the required expertise and resources for optimizing their pricing strategy. It is here that competitor pricing intelligence comes into the picture.
Today, in this blog, we will get a detailed analysis of pricing intelligence software for different businesses.
Let us start.
What is Pricing Intelligence?
Pricing intelligence is the practice of monitoring competitor prices for making informed and strategic decisions regarding your product/ service prices. WebDataGuru is one of the leading data extraction companies providing guidance to industries for better pricing. You know where to look when you get stuck in any kind of pricing glitch.
Furthermore, pricing intelligence harnesses the power of your pricing strategy and helps you drive the sales to a level that is at its peak. There are various ways of collecting price intelligence data. One way of doing it is the manual collection of data by visiting the competitor websites and stores while another way is to opt for automatic data collection with data scraping. Now, as this is one of the easiest ways, it also needs some careful observation to get the best results. Irrespective of the method, it’s essential to make sure that the data collected is accurate and up-to-date. As the data needs to be relevant to get the correct analysis. Once the data collection is done, it is used for analysis to notice any specific trends or patterns in the competitor pricing. It also helps in identifying any threats or opportunities that might impact your business. Most importantly, the data is useful for creating your pricing strategy.
There are excellent pricing intelligence tools like ours with specific features to meet the diversified needs of any business irrespective of the size and industry. These tools are a powerful way of saving valuable hours and getting access to meaningful data. Having actionable insights by your side can help in making quick changes in the pricing strategy and staying ahead of the competition.
How to Collect Pricing Intelligence Data?
There are different ways of collecting competitor pricing monitoring data. As mentioned above, one way is to collect the data manually while another one is to collect it automatically.
When collecting the data manually, a few things should be kept in mind. Always collect accurate data and compare similar products in the terms of features, quality, etc. It is a time consuming and cumbersome process, and most businesses lack the required resources for doing it on their own. Data collection tools can prove to be a better alternative!
When you decide to use data scraping tools, a few things should be considered. The tool should be capable enough to accurately collect the required pricing data. The internet is like a vast ocean of information and making your pricing decisions based on poor quality or unverified data can lead to significant issues.
The tool should be set up for collecting the data on a regular basis so that you have up-to-date information. Irrespective of the method chosen, it is important to make sure that there are sufficient data points for identifying trends and patterns in the data. Aim for at least 100 data points every month, if possible. It helps in getting an understanding of the key trends.
The more data points you have, the more accurate insights about the price elasticity and fluctuations. It enables you to be strategic about the price change decisions.
Right Way for Competitor Price Analysis
Once the competitor pricing intelligence data has been collected, it’s time for analysis. As seen above, the information should be used for observing any particular patterns in the pricing as well as opportunities and threats for creating a perfect pricing strategy for your product.
- See if there are any seasonal trends in the pricing
- Are the competitors increasing or decreasing the prices when there is an increase in demand
- What happens when there is a new competitor in the market
It can only be done by a seasoned data analyst as it’s challenging to perform this level of analysis. It is here that automated solutions come to your rescue. There are solutions that help with collecting pricing intelligence tools data in a specific market and efficiently offering businesses with the tools which can help in saving time. It helps in creating brilliant marketing campaigns for consumers looking for the best deal to optimize revenue.
The competitor price analysis helps in deciding if you are paying more for the goods and services. It offers insight if you are getting a fair deal. If you are paying more than the competitors it is not possible to get the best deals.
Identify Why Competitors are winning
There is no particular way of performing competitor price analysis. Consider a few things before starting the analysis.
- It is important to compare apples with apples. Look at the same products having the same features.
- Make sure the same method is used for price comparison.
- Analyze the same period of time.
- If applicable, make sure that you look at similar times of the day.
You must identify aspects that you can learn from the competitors. If everything else was done right, you must be able to learn a lot from the competitors. In the process, you might even find out where they are going wrong and treat it as an opportunity.
Establish the Ideal Price Range
While getting started with the competitive pricing database, a good step is to establish an ideal price range. Collect data like industry costs, consumer demand, and competitor prices for optimizing the prices and setting your business apart from the competition.
Analysis of these factors helps in determining the best value you can provide the consumers while staying profitable. Further, a competitive pricing database can be used for understanding how these variables adjust and interact.
Benefits of Pricing Intelligence
Now, you might have got an idea that pricing intelligence is beneficial in many manners. But let us just point out a few pros.
1. Enhanced Pricing Strategy: Every business has a pricing strategy in place. What matters really is the optimization of the same. Pricing intelligence tools help you identify the gaps in your pricing strategy and helps you redefine them, so they perform for your business goals. Now, that is necessary for today’s digital era.
2. Higher Profitability scores: A business is run with an ambition to make a profit in the long run and with higher margins. Everyone wants a piece of cake and eat it. So, with pricing intelligence like ours, you can rest assured of having good opportunities for cost reduction and increasing your revenue streams without much of a hassle. Profits define a company’s growth graph and taking the right steps towards driving the customers towards buying your product ensures more revenues.
3. Better Customer Relation: We need customers to survive and thrive. And retaining customers is the real task for every business in such a competitive market. There are millions of options available for your product. Firstly, you need to attract a customer, then provide them the best offers and then give them delightful experiences so they stay with you for a longer time. People don’t constantly change their loved products. It is when there are certain changes that don’t go well with them. With the help of pricing intelligence, you can get honest feedback from your customers. This in turn helps in developing a strategy that helps them stay loyal to your brand for long.
4. Competitive Advantage: Retail business is not deprived of competition. Competition drives many businesses to stay on point in many aspects like marketing and providing many deals. Building a reputation among your audience becomes the main priority when it comes to grabbing their attention. So, pricing intelligence can help in comparing the prices and the marketing strategies as well of your competition. For instance, you can know the deals given by your competition on different eCommerce platforms enabling you to decide the right moves to stay ahead of them at every step.
Why is Competitor Price Intelligence a way forward?
Competitor pricing intelligence plays a crucial role in defining a pricing strategy that is simple to adopt and understand. Some research on the competitors can help in going a long way. It helps in identifying the brand value.
There are already renowned players in the market so the pricing strategy might fail if it’s based on competitors’ products. This is a competitive pricing analysis. And that’s the way to find competitor pricing.
Competitor pricing intelligence is a crucial tool for any business that wishes to stay ahead of the competition. Monitoring the competitor’s prices enables you to make well-informed decisions about prices. It ensures that the business remains competitive as well as profitable.
Are you still reading? Join us to boost sales and make your pricing speak volumes. Reach us to get results that are certain.