The pricing and marketing strategies applied in the eCommerce market constantly evolve and vary to align with emerging trends. Generally, when you visit online stores, you will go through a few websites while checking the ratings, reviews, and prices before making a decision.
But certain factors such as price intelligence have revolutionized and made product research by customers easier and effortless. You can make most data from your online store publicly available on the internet to help your business stand out among competitors.
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Price Intelligence: What is it?
As an online business owner, it is important to understand what price intelligence entails. So, what is price intelligence? It is a process that involves the automated collection of price data across various websites for analysis and tracking purposes.
Some of the processes include dynamic repricing and monitoring competitors’ pricing. With price intelligence, you can assess where your business stands among competitors and make relevant changes in order to be competitive.
Price intelligence also offers you price change alerts, and product matching, and suggests price values for your products. But first, you have to install AI software to set up price intelligence. Price intelligence software collects data and does the analysis on your behalf. The benefits of using AI to track and monitor pricing strategies in the eCommerce market are obvious.
For instance, it saves you time which you would otherwise spend on individually researching what your competitors do to exponentially increase their traffic.
Moreover, when you effectively manage to set up price intelligence you get to enjoy a deep analysis of the competitors’ market position, their market behaviours, and price fluctuations.
With such data, you can come up with strategies to counter your competitors and also improve customer experience. Well, there is a lot more your business can gain from using pricing intelligence software.
1. Keeping Up With Marketplace Trends
Tracking product prices in the market gives you real-time insights into how to price your products. This gives you a wide range of prices, from minimum to maximum prices, as charged by our competitors.
Knowing the price trends in the market not only helps you identify potential threats from competitors but also derive requisite strategies to stay on top of the competition.
2. Outperforming Competitors
Pricing intelligence software provides you with data on where you rank among competitors in terms of pricing strategies. With such data, you can monitor competitors’ assortment planning, prices, promotions, and stock-outs, and improve your strategies further.
This ensures that you keep up with product trends and stock up on trending products. Imagine missing out on products that are in high demand as your competitors enjoy traffic crowds.
3. Refining Pricing Strategies
Sometimes business people are scared to set the right prices that will suit their products hence earning a lot less than what the marketplace actually offers.
Do you know that there is a market price for every product? Well, price intelligence software identifies the market prices for different products and also generates price values for your products to help you maximize your profits.
4. Improving Sales and Market Share
One major factor that also contributes to a customer’s purchasing decision is the price of the product. Therefore, you need to sell products at a price that can push customers to pick you over competitors.
Ultimately, this tremendously boosts your sales and market share.
5. Improving Customer Loyalty and Satisfaction
There are three complementary factors that customers often recall when they visit a shop; affordability, quality and quantity. When you purchase a lot of quality products at an affordable price, chances are that you will go back to that shop.
And that’s just the case for every other customer. With price intelligence software, you can set a pocket-friendly price for your products to cultivate customer loyalty and satisfaction.
The ultimate decision depends on what works for you. However, even if your business does well without pricing intelligence software you will still need the extra automated data collection and analysis that comes with price intelligence.