Pricing Analytics Software
In the era of digital retail and price transparency, pricing analytics software can be a vital tool. Learn how to use price analysis software to boost your competitiveness and stay ahead of your rivals.
What is pricing analysis software?
Pricing analysis software is a tool used by retailers to collect, process, and analyze data in order to set optimal prices and boost competitiveness. Price analysis software can be used for various operational and strategic tasks from putting particular items on promo to making long-term demand predictions.
The main factor forcing retailers to look for advanced pricing analytics software stems from the fact that price itself remains a core factor considered by shoppers. Get this: 81% of consumers compare prices online before making a purchase.
The retail next era: technology is the new king
The global economic recession of 2009 forced retailers of all sizes and market segments to seek new ways of making business. Technology has become a new trendsetter replacing outdated sales strategies and pre-digital marketing tools.
The retail industry trendsetters have two things in common. First, access to comprehensive and accurate data. Second, they use advanced tech to get crucial market insights necessary for optimal pricing.
Using advanced pricing analytics, retailers are capable of bringing extra value to their clients. Customized promos, unconventional pricing strategies, and proactive competitive strategies are all possible with advanced pricing software.
How price analytics software works
There are plenty of pricing analysis software solutions available on the market today. Even though their complexity, accuracy, and reliability may vary, the three fundamental processes underlying the work of pricing analysis software are the same. These include:
Highly accurate data on competitors’ prices, stock availability, credit conditions, promo, and other metrics are collected or updated.
Procession and analysis
The software processes the data to deliver important analytical insights for better decision-making
The algorithm generates demand-driven price recommendations based on the retailer’s strategic goals.
How to choose the price analysis software solution
There is no single set of features and benefits offered by software providers. The choice of a particular solution depends primarily on a retailer’s business goals.
Here are just some of the benefits that retailers might receive using the price analysis software:
- customized data sets collected in real-time
- full visibility of market changes and competitors’ impact on sales metrics
- highly accurate exact and similar product matches
- a comprehensive vision of market violations by all the stakeholders
- comprehensive insights into competitors prices, stock availability, promo, credit conditions, and more
- visualized competitive insights indicating price sensitivity to market fluctuations
- actionable alerts enabling managers to prevent potential crises
How to Use Your Pricing Analytics Tool
A pricing analytics tool is one of the most important tools in your online business. It provides you with a clear picture of all your different pricing options and will allow you to save time, money, and effort by providing you with accurate and reliable information. This is something that many new entrepreneurs miss out on.
Before you start to work with your pricing tool, it is a good idea to know which of the many different methods will be more effective for you. After all, there are many aspects of your pricing tool that will need to be considered in order to make sure that you have a complete picture of the way you do business.
By knowing what each option entails, you will have a better chance of knowing what each price should cost. Then, you can choose the best option for your business. It will save you time and money as well as your customers will no longer wonder what price it should be.
When you work with your pricing tool, you can use the choices for each product separately or you can combine them. This will help you determine what price is right for your product. The product information that is displayed includes the type of the product, the features of the product, the cost per item with shipping and handling. You can also enter in the options for where the product is sold.
You can also add more information when you work with your pricing tool by having the customer service representative to give you feedback on each product. Customers will often recommend a product to a trusted business because they know the right choice will be the best fit for their needs. This feedbacks are what you will receive when you work with your pricing tool.
If you have multiple products, it will be important for you to combine your pricing tool. The larger the number of products, the more time it will take to complete the research.
Pricing analytics will help you have a complete picture of all your pricing options. With this tool, you will be able to determine exactly how much you are charging your customers, which product is best suited for each customer, and more.