What can we say different about pricing? Everybody knows the significance of pricing in a business. But what if we were to tell you that you can do more with your pricing? What if we told you that pricing can also help in building a brand, pushing competition, and creating loyal customers? Yes, you can find that out in this blog.
For any business, designing a pricing strategy can be a complex as well as challenging process. It can be particularly overwhelming when you don’t know where to begin with. But going with your intuition and no knowledge can be a wrong choice. We say that because smart pricing should be a deliberate attempt and done with so many efforts. Intuition does play a role but it can’t be the only ground for your pricing strategy in business.
Let us explain. For instance, you sell boots for $40 and your competition sells at $38. Now, you can’t just jump into the price war and reduce the price when your product has more value to offer. With simple intuition, you might feel compelled to follow the trade but with insightful information, you will still continue to sell at $40 and invest in marketing to show the value you offer the customer. That’s how pricing intelligence software helps you in growing the business. WebDataGuru provides the best Smart Price intelligence software for all the businesses across.
The tried and tested method which has stood the test of time is studying the prices and reviewing the findings on prices of competitors to come up with a smart pricing strategy. It is here that price intelligence software comes into the picture.
Here’s a look at how to price intelligence software can help in increasing revenue:
1. Staying Ahead In Competition
Online business has a lot of potentials but so is the cut-throat competition. Many companies just struggle to survive against the giants. But there is a smarter way to not just survive but thrive in the eCommerce retail market. The price intelligence software helps in studying and predicting the market demand. Also, you can get a fair idea about the competition moves. This helps you in designing a relevant and effective pricing strategy for your business. Now, you understand the importance of pricing but putting the time and resources will be expensive and tedious. And automated assistance will be great in such situations. Pricing intelligence software is the right way to go.
When you monitor the pricing data of competitors, you can position your products in the market by planning your pricing accordingly. Early as well as constant monitoring of the price can enable you to develop better strategies.
2. Predict And Plan
The market has many changes with respect to holiday season, economic conditions, and customer preferences. Now, knowing all that and changing your pricing at the exact moment can be tricky. Pricing intelligence helps you in knowing a predictable future trend and enables you to adjust your pricing according to that dynamic.
Market dynamics and the right move can help you in staying ahead of your competition in an efficient manner. It saves the business from any situation wherein they end up pricing their product too low. Low prices might offer significant business but end-up experiencing loss in the long run.
When you have an insight into the different demand indicators and an understanding of competitors’ behavior, you will be in a position to modify the prices and increase your profit margins. If competitors face a negative backlash and several customers back out, your business can benefit from that situation without decreasing the prices much and driving the traffic to your website. You can also start relevant marketing campaigns to further attract the customers to your business.
3. Manage Inventory Levels
Being in retain means having a good handle on your stock. Now, with online business many times you might overlook the inventory. For instance, one location has a high demand of your clothing line. But, you don’t deliver there or have enough stock to cover that demand. So, with pricing intelligence, you can get a clear idea of the demand and then you can stock up to deliver to those customers. It is all about grabbing the right opportunity. The price intelligence software helps in predicting the real-time situation and tracking demand. This will enable you to manage your inventory well. There can be nothing worse than a customer arriving at your webpage because of an ad claiming low prices only to find out that your product is out of stock. It is important to manage this aspect of your sales as it plays a crucial role in customer experience.
4. Helps With Better Advertisement Campaigns
Marketing and pricing go hand in hand. One is an overhead which needs to be covered while taking pricing into consideration. Also, while you think that you have a good price to offer, it is equally crucial to market such a communication. With the help of price intelligence software, you can design advertisement campaigns with a thorough understanding of what and whom you wish to target. When you have a thorough understanding of your market, customers as well as competitors, you can design the campaigns accordingly. This ultimately saves a lot of money and time. If your competitors are offering a discount on car prices, you can offer accessories free of cost. Such strategies are bound to attract users and help your business thrive.
5. Recommend Products To Customers
With price intelligence software you can understand your customers better. This further helps in suggesting them the right product. If you have data on the kind of product they are browsing, you can make recommendations easily. If they are looking for an XYZ car model, you can suggest to them a similar car at a lesser price to make them curious and visit your website.
How To Utilize Pricing Intelligence?
Now that we know the significance of price intelligence software, you must understand how a business gathers information to design its pricing strategy.
1. Identifying The Competitors
While any business has a market full of competitors, there are some primary competitors who have more risk than others. When you understand who they are, the level of threat they pose, their reach in the market, and their ability to influence price, you will be able to identify the actual threat to your business.
2. Track And Analyze Data
Once you are able to identify the right competitors, price intelligence software will offer real-time information on pricing. You will be able to monitor when they are decreasing or increasing the price and the frequency of price change.
If you notice a considerable price decrease, you can deduce that a special sale is coming which will definitely drive more sales. Using this data you can adjust your price points so that customers find your prices better than the competitors.
3. Report And Evaluate
Price intelligence software offers a dashboard for understanding the data fast and making well-informed decisions confidently. It is always better to make data-based decisions as compared to the guessing game. It can be a smart choice for any business to invest in price intelligence software.
Finding software or application for anything can be a challenging task. But it is not the case with pricing strategy needs. There are several price intelligence software and tools available in the market. These tools offer data which enables any business to take action. The tools make use of AI to quickly recommend precise pricing. It also enables the distribution of prices across all your channels with just a push of a button which is convenient.
Price Intelligence Is The Future For Any Business
It goes without saying that businesses thrive and sustain on revenue and profits. However, you need to take several measures to ensure good revenue. Apart from offering a good product or price, you also need to work on the prices. Pricing is everything when it comes to revenue.
Price intelligence also helps in understanding the market demands in a better way for acquiring a significant market share. The software might come across as upfront cost but it is an investment that will help in fetching higher ROI along with protecting and improving your profit margins.
Thanks to advanced technology like price intelligence and analytics, the organizations can now design intelligent pricing. The new approach to pricing enables businesses to come up with different strategies with benefits such as empowered sales, improved margins, and increased revenues. The trend for data driven and tailored pricing is inevitable. Price intelligence tools can fuel competitiveness, growth, and innovation.
With price intelligence software you can make use of all the information at your service and become a pricing wizard which not only leads to business growth but also improves your profit margins.
Push Your Business in The Right Direction
Pricing intelligence can enhance productivity, and build a brand and good customer base. And we are sure that this article must have cleared your doubts regarding pricing intelligence software. Generate revenue at an unimaginable scale with WebDataGuru. Contact us today to know more!