Your company doesn’t exist in a vacuum. There are many external forces that have an impact on shaping your business strategy, whether it be consumers, suppliers, or competitors. Monitoring your competitors plays an important role in shaping your strategy and in particular, your pricing strategy. It’s not about simply checking and beating your competitors prices – a loss leader strategy isn’t practical for most businesses. It’s about about achieving greater profitability through the effective use of data.
Here are the top 5 reasons why you should employ a competitive monitoring solution:
1. If your customers are checking prices daily, so should you.
Consumers are savvy and it’s become increasingly easy for them to compare prices. The rise of showrooming proves that the ease of doing a simple internet search is all it takes to find a substitute. It doesn’t mean you have to have the lowest price if that‘s not aligned with your strategy. Factors other than price play a role in a consumer’s purchasing decision, but price monitoring can be a helpful benchmarking tool.
2. The ability to react quickly to changes in the market is a significant competitive advantage.
Dynamic pricing is on the rise. Amazon is just one example of a retailer that adjusts prices frequently. Having the ability to gather real time data and enable real time repricing means you never get left behind.
3. The cost and time savings are significant.
You can’t compete with automated systems like Amazon’s manually, at least not efficiency or in a way that’s scalable. Automated solutions ensure that you have a more complete set of data that is accurate, acquired faster, and easily accessible.
4. Data integration: Combining competitor data with your own company performance data allows you to create a more effective multi-dimensional pricing strategy.
Maximize your revenue by refining and optimizing your pricing strategy. Repricing tools such as WisePricer allow you to set advanced repricing rules based on multiple factors such as: competition price and inventory, time of day, sales performance, traffic, conversion rate, and more. You can set a weighted index in a way that makes most sense for your business. The rules are customized; the implementation is automated. Although rules can be adjusted, it also helps you stick to a more consistent pricing strategy without making impulse decisions based on every change in the market.
5. Built-in analytics and reporting features make it easy to compare the results of your pricing rules over time.
Get the information you need, when you need it. Configure and export powerful reports on price trends, competitor distribution, competitor margins, and more. You can easily build up historical data which can be helpful in forecasting, seasonal planning and strategy refinement over time.
Implementing a price intelligence solution can have a significant impact on both your top and bottom line. On average, companies using Wiser see:
- +22% increase in sales revenues
- +7% increase in bottom line profit
- +18% increase in checkout conversion rates
- +48% increase in pricing response time