One of the biggest reasons Amazon is so successful is due to its data collection, analysis, and utilization. To face off against an industry giant and numerous others, business intelligence and analytics have become an essential part of competing in the retail landscape. In a previous post, we explored the benefits of outsourcing the solution. Here’s how to act on the information you worked so hard to obtain.
Now that you’ve painstakingly gathered it all, what can you do with the pricing data? On the surface, from how competitors are pricing their products, you can gain insight into their pricing strategies and behavior. Then, you can better benchmark your own pricing position, determine price elasticity and improve your overall pricing strategy. The simplest pricing strategy would be to undercut competitors, but they would end up doing the same, resulting in a price war. But that would be pointless, because nobody wins. With detailed information on price elasticity and your position, you can optimize pricing strategically. Price optimization is the better alternative to a price war because it cements a brand’s position without compromising revenue and even maximizes profits by identifying the right opportunities to raise prices.
Assortment analytics allows you to see how your products stack up against what competitors are selling. Identify where there are white spaces and other categories where consumer demand isn’t being met by going through data collected on a competitor’s assortment. Comparing internally will also allow you to see where the gaps in your own assortment are and allow you to fill those gaps before those competitors can. For example, on Wiser’s platform, you can view an insight showing the assortments of various companies and easily spot where there are gaps.
Instead of reacting to market demand, you should be driving it. With proper assortment analytics and tools like these, you can forecast what customers will want and meet the demand with ease.
During holidays, competitors are sure to run similar promotions year after year. With promotional data, you can see their annual behavior and adjust your own promotions to draw in more sales with more enticing deals. The more information you have on the effectiveness of various promotion types, the more actionable the intelligence. You can also see how promotions compare across the competition and maximize the return on investment through tweaks to your own promotions.
Another point of analysis is to consider the visual component of the promotions, especially those that are seasonal. With Wiser’s screenshot database, you can look back in time to see what your competitors advertised and compare that with performance data. Promotional analytics give insight into which campaign customers may favor over the others, driving more sales.
Overall, utilizing data analytics and business intelligence enables confident decisions because they’re all backed by data. With smart decisions about pricing, discounting, and assortment strategies, you can maintain your position ahead of the competition.
Contributing writer: Matt Chow
Need better data to inform your decisions? Whether in-store or online, Wiser has you covered from pricing to assortment to promotions. Schedule a meeting today to learn how to turn retail data into action.