Pricing your product right can be a very overwhelming and time-consuming process. Companies with their manufacturing best also go for price intelligence software to get it absolutely right. Basically, competitive price intelligence is a crucial aspect of the product marketing process. Moreover, it enables the product marketing managers to identify the gaps in the market for improving the products and services, meet demands, and stay ahead of the competition. Price intelligence software can prove to be helpful to product marketers as it can increase the customer acquisition as well as overall revenue. In this blog, we will focus on the significance of a price intelligence software for all kinds of businesses.
So, let us begin right away.
What Is Competitive Price Intelligence?
Competitive price intelligence, also known as price intelligence is a powerful strategy which can be used by organizations for tracking the price and performance of the competitor’s products in the market. As you get into the online market, it is understood that there is far more competition than we anticipate. So, keeping track of your competition and market trends becomes pertinent. And price intelligence helps in determining how pricing decisions can be made in an informed manner. WebDataGuru is one of the best companies providing software for all industries.
Role Of Competitive Pricing Intelligence In Product Marketing
Products are everywhere. Innovations are being made every minute of the day in the world. And the market is evolving constantly and the prices of your products can affect the sales and profits of an organization. Both correct and incorrect prices can impact the sales. You need to find out a way where customers to find your product affordable without affecting the revenue and profit of your organization. Now, that is very tricky and needs more strategies than you might think. Pricing intelligence helps you in getting through that tunnel vision and takes you to the final destination. And that’s what is needed for the company.
When you have an insight on where your product stands in competition in the market, you can immediately respond with price changes. And getting to that insight is the key. Without that knowledge, you will be shooting in blindsight. Pricing intelligence will enable you to target the customers, widen your customer base, and improve your revenue figures without much hassle.
For example, when an organization gets to know about higher selling price of the competitive products, they can immediately offer discounts or lower their prices which can help in getting more customers leading to improves sales and revenue in spite of the low price for the product. Or even offer better service and discounted/free shipping for the consumers. This way, you ensure a sale and also rope in brand loyalty.
Price intelligence software can help with alternative issues as well. The organization can also analyze and find out if they are underpricing their products. This will enable them to quickly increase the price point which would help their organization in earning more revenue by grabbing the opportunity. This helps you in maintaining a good ROI and also not miss out on the good pricing gap.
How Can Price Intelligence Strategy Be Optimized?
There are several aspects of a strong price intelligence strategy that should be considered while incorporating the strategy into a product marketing plan.
1. Identifying The Competitors
Competition is an evident part of any kind of market. So, the first step of the strategy is to figure out your competitors so that you can benchmark the pricing against them. Also, you will get a fair idea of your market position as compared to the competition. The competitors will be different and you need to analyze which competitor should be given priority in your competitive price intelligence strategy. Because you don’t want to get into silly pricing wars as it only disparages your identity and the brand value. So, to get to the best point with the competition becomes necessary and focus on a few competitors than all of them. As otherwise, it might cost you more than you might lose out in the competition.
Price changes on different platforms are based on the overall demand from customers on that platform. Even for the same products, you should check which competitor is coming from which platform and if they are present online, offline, or both. This will help in identifying how to change the price point and how much are the customers willing to pay on that platform.
Not to forget, that all the eCommerce platforms use unique algorithms that help in designing a better user interface. And pricing intelligence can help you in garnering a good perspective about your product ranking. According to that, you can focus on optimizing the product for your benefit.
2. Collect Price Intelligence Data
There are different ways of receiving the data. Experts say that simply relying on public information isn’t a wise way of differentiating you from a competitor. It can be the right strategy to collect information which is not available publically. If you stop where others do, it won’t make you different from competitors.
According to price intelligence software experts, you should consider the following approaches for collecting price intelligence data. You can practice competitive intelligence with the help of win/loss interviews with your buyers. The approach helps in getting everything that you need to know about competitor pricing.
Order of magnitude questions in win/loss interviews with the prospects can help in getting confidential information. In fact, 3rd party mystery shopping firms can also come to your rescue and can ethically help you.
Asking the prospects and expecting them to land on a price is a good approach but will need you to ask the questions in a different manner. Instead of asking them directly about how much are their willing to pay, you can ask the below mentioned questions:
– How much is too expensive for you to buy a product?
– How much is expensive but still, you would be ready to buy?
– What is the price point where they will definitely buy?
– What price point is too cheap for them to question the quality of the product?
This will help in landing on a great price point for your new product.
For instance, if you want to collect millions of data from the internet without getting into hiring or training an employee, then companies like WebDataGuru are at your service for all kinds of data requirements. You can just fill in the details and wait for the results along with the insights. What more could you have asked for?
3. Identifying Which Strategy Will Suit Your Product
The next step is analyzing the data and identifying what strategy would be suitable for your product and implementing it. Yes, knowing what will work and what won’t is spiraling. So, you must first list your products and find out the competitors you want to monitor. Then, you will get the result you wished for.
Challenges With Competitive Price Intelligence
Though there are more pros than negatives to pricing intelligence, there can be some challenges in collecting competitive pricing intelligence that must be taken into account. The biggest challenge is that some methods are very complicated. Thus, this should be deeply researched before continuing with price intelligence software. You must go for the most reliable and authentic software out there. So, let us understand some challenges.
1. Mystery Shopping
It allows you to get pricing information from the competitors but you should not misrepresent yourself when talking to a competitor. You should never pretend to be a customer when you are a competitor as it is not a way for healthy competition.
The best way to get competitive pricing is using a price intelligence software. Deep web searches, asking a prospect, and asking an existing customer are some of the right ways of finding out about the competitor pricing. Yes, this way you can be on the right track without being shady. Pricing intelligence is the most amazing thing to happen for an online seller.
2. Significance Of Price Intelligence Software
You can outperform your competitors with the help of price intelligence software. It helps in improving your pricing strategy as you will be able to track the competitor’s price, promotions, and more.
Tracking the trends in the marketplace can become easy with the help of real-time price intelligence software. To stay on top of the competition, you must stay updated about the latest prices.
You can even refine your pricing strategy with the help of competitive price intelligence software. If you are selling the product at much higher or lesser price, you can modify the price point accordingly.
In this digital era, it is the need of the hour to use price intelligence software to stay ahead of competitors and boost your sales and revenue figures.
Driving the Change of Price in an Upward Manner
Making a mark over your consumer is the aim every seller has. But, going for the lowest price is not just the one. You can offer value and get the pricing you want for profitability. But getting there can be a long process. Pricing intelligence can make that journey a little fast and more effective. So, order a free demo or contact us today to drive your change towards a better future!