Whenever you shop, you see the product, its features and its price. And more often when someone decides to shop, the first thing they look for is the price of the product and then the rest of the things follow.
The name of the seller, the reviews, and delivery dates do matter but they are never looked upon at first. And it is obvious as mostly when you decide to buy something, you set a budget for the same. It is the price that matters the most. If the price fits the budget, other factors come into consideration.
Thus for any business, one of the most important aspects is to price their product in such a way that they can sustain in competition without losing their customers to their competitors. This can be achieved with the help of pricing intelligence.
Influence Of Pricing On the Customer Behavior
As per a study, almost 70% of the shoppers mention that the first factor for them while shopping online is the competitive pricing strategy. Everybody likes a good deal. Without even thinking, people subconsciously compare the prices before buying the product. Also, shoppers have become smarter and they want to get the same product at a lesser price. It is a common behavior for people to look at price and then reviews, while buying something. People visit at least 4-5 websites or e-commerce portals to compare the prices. Here, online retailers need to become as vigilant as the customers. And competitive pricing strategy will help you get there. WebDataGuru is one of the best web data extraction companies that deliver outstanding services all across the globe.
Comparing prices impacts the significance of a competitive pricing strategy which can be designed with the help of pricing intelligence software. More and more businesses are embracing price intelligence to improve their sales, and profit margins and get better customer relations. The process of constantly monitoring, tracking, and analyzing the changing pricing of products is known as price intelligence.
It is the work of the experts like WebDataGuru, who handle different products of many companies to develop dynamic pricing. It is to be known that price intelligence and strategies are not about reducing the prices of their products in response to the price set by the competitors. They simply come up with schemes such as buy one get two free, discounts, and several other offers. These tricks make the buyers shift from competitors’ websites to theirs. The strategies help you understand your market position and the customer preferences. So, you can also shift the customers by offering free shipping if that’s what they want. And you can find that information from the pricing intelligence software.
There are only a few men and women who would go to other pages for checking their offers. Most of them are glued to the offers made by you. Offers and discounts will make them attracted to your webpage.
Significance Of Pricing Intelligence
Now, we can get into the main importance of pricing intelligence in every eCommerce business. To begin with, the data which is generated by the retail industry is being used extensively in this era of the digital revolution. The data is also being used by the organizations constantly for developing perfect pricing strategies. It is important to understand that data will be in millions and sort8ing relevant information can become a herculean task and humanly impossible. Automated solutions are the only savior in such situations.
E-commerce portals such as Amazon, Flipkart, and Myntra are known for changing the prices of their popular products at least 10 -12 times a day. Yes, and sometimes it is target oriented. The algorithms work differently and in a user-friendly manner to keep up the customer interests. Furthermore, these prices are changed based on the competitive pricing strategy developed in response to the data obtained from pricing intelligence software. In fact, a study claims that some e-commerce websites change their prices every 3 minutes for garnering better sales. For instance, if you want to buy a handbag. So, the basic first response will be to surf through famous eCommerce websites. Now, you might forget about it, but suddenly you will be seeing ads for different handbags that you like with discounts. You might be wondering how they do that. Well, data extraction. Yes, and this data helps them in targeting the audience who will buy the product at a certain price and therefore, ensures conversion.
How Pricing Intelligence Can Help With Long Term Growth?
1. Pricing Intelligence Tools
The market is highly competitive and it can be really time consuming to monitor the competitor’s price manually. It is time-consuming and prone to human errors which leads to inaccuracy. Also, not to forget that it might be biased. Thus, you can use automatic pricing intelligence software for getting better and more precise results.
These tools use algorithms for keeping in check the price of the products. The name, layout, sizes, inventory and images of the product will differ from that of the competitor’s website. It only gives an idea about the pricing with the help of keywords. Now, this information will help you create a better plan for your marketing.
2. Develop Effective Pricing Strategy
You need to first identify the competitors in the market who are selling similar products. You should also identify the selling patterns of the competitors. Once you gather sufficient data, use it for getting a fair idea of the market. If you are in the clothing industry, keep a check on when competitors are starting promotions, having sales, and reducing or raising their prices during the festive or holiday season. Pricing intelligence software can help in offering better results for analysis.
3. Take Action
For getting the desired results, it is important to take the right action on time. Once the analysis of the competitors has been done with the help of pricing intelligence tools and the pricing strategies have been designed, it is time to implement the prices. Now, this will be done in a completely automated manner enabling you to focus on your business.
The product pricing changes daily but with the help of dynamic pricing strategies, one can attract customers by offering them great deals in a time-sensitive manner. After all, you don’t want to wait for weeks or months for implementation when it’s irrelevant and too late. Getting a conversion is a timely game.
How Can E-commerce Benefit from Pricing Intelligence
1. Growing Sales
Every business wants new customers and wants a bigger share of the market. Now, monitoring competitor prices can help in pricing your products in a better way and use the right strategies for your products. If your prices are most appealing to the customers, they are in any way going to choose you over the others. Also, the biggest benefit is that you garner brand loyalty in your customers and then they become permanent customers for life. The CLV is higher when the customer is hooked with your brand. They should feel that your product is best at the given price and is in fact helping them save a few bucks.
2.Improve Product Search Performance
Optimization of the website, choosing the right keywords, and positing the relevant content alone won’t help in fetching customers. Yes, keeping your customers happy is the first rule to retaining them. Moreover, the prices of products play a crucial role in deciding how customers will perceive your product in the long run.
For example, Amazon uses product prices to get an insight on conversion rates and therefore displays the customers such products which they might buy fast. You might also see the suggestions of “people bought these together”. These are strategies to make shoppers buy more.
3. Customers Are Satisfied And Happy
Customers are always happy with the shopping experiences where they pay less and get more. Unnecessary and additional costs make them leave the item in the cart. And we know that has happened to every one of us. So, your prices should make the customer happy and make them feel that they are spending less and getting the best of everything. This way you can get an opportunity to sell more products to one customer making you spend less on getting new customers. They will remember your brand name and keep on shopping from you if the prices are reasonable and there are no extra charges.
4. Branding and Marketing
When your products are priced reasonably and your products reflect quality, the word of mouth marketing will keep on selling your product. If people find your product good and reasonably priced, they will keep on spreading the positive word which is quite easy in this digital era. This will bring organic traffic to your website and help in improving brand awareness.
Bring The Best Price Forward
Pricing intelligence is very important for every e-commerce business for surviving in the tough competition. The price intelligence tools at your disposal will help in developing a competitive pricing strategy which is the need of the hour.
WebDataGuru can help you in doing that. We have the expertise and the experience to take your brand forward in every possible manner. So, contact us today to get the best pricing intelligence tools for 2022.