Price Intelligence Software
In the highly competitive and high-tech market of 2020, price intelligence software has become an essential tool for retailers of all sizes. In order to set the right prices, your business needs a complete perspective of your market, your product positioning, and more. Using price intelligence software, you can stay two steps ahead of your competition and set your prices according to the ebbs and flows of the market effortlessly, increasing your revenue and sales in the process.
Price Intelligence for the Rapidly Changing Market
The amount of data in retail is growing every day. It includes internal data about sales, promotions, and stocks, as well as external, or competitive, data about prices and other market changes.
To make this data eligible for market analysis, a retailer needs to collect it properly from all available sources, and then clean and structure every data point. However, most retailers collect unstructured data from different sources. Therefore, it is difficult to use such data for price intelligence or to create a winning pricing strategy.
Retailers’ biggest challenge is to analyze data and obtain insights which they use to compete in the constantly changing market. The insights usually cover repricing, promotional activities or assortment: every one of these can transform a business into a retail winner if arranged correctly.
|60% of shoppers choose the retailer with the “optimal” price (PWC)||12,000 of retailers (mostly in the US and the EU) from different industries which manage over 1.6 million stores||71% of in-store shoppers who use smartphones for research say that it has become an important part of the experience (Google)|
It is important to transform the daily search and analysis of market opportunities into an organized and manageable process consisting of a minimum number of routine tasks. To do that, retailers need to select a solution that will do these tasks for them.
The benefits of pricing intelligence software
With all of this information at hand at all times, retailers have several opportunities to boost their revenue and sales, and can make pricing decisions at a lower risk than pricing based on experience alone. With an effective software, retailers can:
- Identify potential niches and market gaps that they can fill
- Discover opportunities to increase prices (e.g. when competitors are out of a given item)
- Protect and maintain their brand image
- Understand their exact market positioning for each individual product
- View the market positioning of key competitors
- Identify potential MAP violators
Price Intelligence Software: rich choice, scarce value
An in-house price intelligence solution is expensive to develop and then maintain. Retailers who value their time and resources use a SaaS solution to solve the same task: a cloud-based software ensures a quick and seamless integration with the retailer’s internal system and allows being flexible in price management by expanding or narrowing the set of functions.
It is hard to choose the right solution since there are many of them. Non-comprehensive research across relevant listings shows over 370 solutions to manage prices.
There are solutions that focus on data collection, while there are those which help retailers interpret the data and make the right decisions.
Businesses need to choose wisely: the perfect PI solution has to comprise the maximum number of functions necessary for retailers.
Comparing and choosing the right price intelligence software
Retailers have a plethora of options to choose from when selecting a price intelligence software. That being said, each software can differ greatly in terms of the data provided, how often this data is re-checked for accuracy, and how this information is displayed. When determining which software might be the best one for your company, keep in mind the following key factors:
- Data accuracy and delivery. The ideal price intelligence software should have very accurate data that is delivered when you need it most.
- Transparency. Your provider’s platform should notify you of important details, such as if certain information is out-of-date, or if your prices are considerably lower or higher than the rest of the market.
- User-friendliness. Your software should display all the information in an easy-to-read manner, provide graphs and other useful imagery for planning and analysis, and should not be too confusing or time-consuming to use.
- Customizability. The platform you select should be customizable to your needs. Avoid software that gives large data dumps of competitors you may not need to track.
- SLA and customer support. Read carefully over the provider’s SLA to ensure you have the flexibility and a guarantee of quality. Additionally, make sure that your software has adequate customer support available to answer any questions you may have.
Most software providers offer a trial or demo of their product for you to try, and it is highly recommended that you do so before making a more serious, long-term investment. Regardless, if you are not already using price intelligence software, you will most assuredly find that your pricing strategy is greatly enhanced once you find the right software for your business. With price intelligence software, you can increase your revenue effortlessly and stay in-the-know about your own market.
Retailers should remember that the main goal of this solution is to increase revenue by optimizing pricing. This consideration has to drive the choice of the solution and its integration.
It is crucial that the retailer-provider agreement contains additional points covering the following:
- the criteria for data quality and delivery
- all the reports are accessible to the user
- reports can be customized and optimized