In today’s competitive scenario, it is important to stay ahead of the competitors. When every competition can make you anxious and out of the place. Pricing intelligence software can help beat those competitions in the retail world with great finesse. Knowing what your company stands for and how pricing plays a key role in determining the drive of purchase can help you a lot. And experts like WebDataGuru can help you reach there.
We will talk about the reasons for depending upon a pricing intelligence platform. While it will make you independent and guide you toward making more smarter choices. So, let us move ahead and explore.
To begin with, pricing intelligence is a broad concept which consists of monitoring and tracking the price trends and further analyzing them for understanding the market. It helps in making informed decisions for different types of products efficiently.
Product prices happen to change consistently which means you need to keep an eye on the prices as compared to the pricing trends in real-time. With the help of price intelligence, you can adopt a proactive approach and make changes in your prices across various product categories. This enables you to offer the best prices via a dynamic pricing strategy.
Pricing strategy helps you target your consumers in the best possible manner. The segments that you target will have specific pricing in mind and you can cater to their individual needs rather than all the segments of the market.
Here’s a look at major reasons to use the pricing intelligence software:
1. Stand Out In the Competition
It is important for any business to be aware of its position in the market as compared to its competitors. Now, why should you do that? Let us elaborate. Firstly, it helps in improving the pricing strategy. Secondly, with the help of data that you receive from the price intelligence software, you will receive an idea about the competitor’s promotions, product assortment, stock-outs, and much more. Finally, that information will help in staying on top as well as stocking the inventory of the products which are trending.
Now, when we speak about online competition, it is far more intense than regular offline or store competitions. There is a very important reason for that. Basically, when you are an online eCommerce owner, you compete with not just one but many online stores. You even compete with the giants like Amazon and eBay. Let us explain. For instance, you might have a presence on other eCommerce platforms. But your ultimate motive is to drive more traffic on your website and earn more from that only. So, you have to compete with the big platforms as well. And pricing intelligence software can help you take some steps toward making it big out there.
2. Improving the Pricing Strategy
Sometimes, businesses sell products for a lesser price which leads to lesser profits than what they could have gained from the market. This is where the pricing intelligence solution comes into the picture. The software will identify such products and enable you to change the price in such a way that the price still remains lowest but your profit margin increases.
Moreover, the pricing intelligence software is completely automated, so you save on many resources and most significantly time. Yes, you can prioritize your work in such a way that can help you focus on the operations rather than pricing alone.
3. Boost Customer Loyalty
If you think about your satisfying buying experience so far, it is mostly when you spend a lesser amount of money and get more products. It goes without saying that customers are happy with shopping experiences that don’t pinch their wallets. They are more likely to repurchase from that seller if they feel that they got value for the money spent.
The pricing software will help in understanding the pricing trends for a similar product like yours in the market. This will enable you to offer the best prices to your customers. When you offer the best cost to your customers consistently, you will witness increased customer retention in the long run. This will boost customer loyalty.
4. Widen Your Customer Base
It can make a huge difference when you can identify the right time to change the price for offering competitive prices. You will get a chance to set the price as well as strike a great deal with the suppliers. This can only be achieved by staying up-to-date on pricing trends.
A business needs consumers. Now, consumers have a preference for changing their buying behavior and you need to be ahead of that. How, can you do that? With a platform that helps you study your consumer behaviors and their preferences over different time periods. Providing the best to your consumer is what keeps them loyal, but that is not enough. You need to enhance the CLV (Consumer Lifetime Value). To make that happen, you need a plan that is designed for such an outcome with increased efficiency.
5. Better Product Search Performance
Apart from website content, keywords, page optimization, etc., the cost of the products can also play a role in improving the visibility when the customer is searching online. For example, Amazon uses an AI-based price intelligence platform for deciding which items should appear in the buy box and which ones should display on the first page. This is done on the basis of the calculated predicted conversion rate. The AI-based price intelligence software can offer the same ability.
6. Improve Google Shopping Campaigns
If you are looking forward to optimizing Google shopping campaigns, it becomes imperative that you use pricing intelligence tools . To elaborate further, the software sends a custom feed to Google shopping automatically depending on the products a business is competing for. The rest of the products gets ignored by the software. The software will perform the same task daily automatically.
7. Access To Smart Data With Analytics
For businesses that wish to stay updated about the customer moves without any data collection and manual tracking, price intelligence is the answer. The software will help in saving money and precious time. The price data will get updated automatically enabling you to make the right pricing decisions for maximum profits.
8. Efficient Inventory Management
When the market shows a plummeting trend for a price of a specific product, no business wishes to be left with an excess of its stock. Otherwise, you will be compelled to sell the remaining stock at extremely low or zero profit margins for liquidating the stock. That is something dreaded by every retailer. However, with price intelligence software, you will be able to offer competitive prices by keeping an eye on the competitor’s prices as well as inventory. This will help in maximizing your stock turnover.
For instance, you sell jackets for $50 and your competition sells at $52. But with a sudden excess supply of specific fabrics, the prices take a hit. Now, if you don’t keep a close eye on that trend then you might lose your valuable customers because of higher pricing. Here, you need to understand that customers who are loyal to your brand may still be inclined towards other brands just because of pricing. And it happens because the hypothesis is that consumers are price-sensitive all across the world.
9. Improve Sales And Market Share
The cost of your product is the first thing noticed by the customers. Thus, for boosting the sales figures, it is important for the customers to choose you over the competitors. This can only happen when you offer your product at a price which they can’t resist! This can be done with the help of the price monitoring feature of the pricing intelligence software.
You will be able to stay updated about the discounts, promotions, offers, and deals provided by the competitors. This data can be used for offering competitive prices along with meeting your profit margin goals. Your competitors won’t be able to stand against you and as a result, you will get a higher market share. Smart pricing strategy with help of pricing intelligence software can offer profitable results.
Route Towards Success
In the retail business, it is the war of prices that we all know. In case you make a mistake in setting the price for your products, you will witness a drop in your sales and margins. And in the long run, you will end up losing your customers and their trust.
The right pricing intelligence software like WebDatGuru offers will not only help in improving your sales and profit margins but also offer an edge in the market over your competitors in an automated way. For retailers and e-commerce sellers, it is time to find the right software and make an investment to come up with a profitable price strategy. Having a clear picture of where you stand in the competition can help in making smart decisions and improving your strategy.
Contact us to know better about our vivid offerings and hop on board toward the success path within no time. Call us or order a demo today !