Price intelligence is the process of tracking and evaluating accurate pricing data to make informed pricing decisions such as changing product prices. Pricing intelligence is vital for every business but more so for online retailers where the price is the foundation of purchase decisions. Customers are more aware than before and so making accurate pricing decisions is essential for business success. Pricing intelligence software gives retailers the tools to effectively price their products at the right time.
Here’s why more and more businesses are turning to pricing intelligence.
Gain a competitive edge
Pricing intelligence enables you to discover the best timing for price changes. By offering irresistible deals when your competitors aren’t doing so can bring new customers to your business which can boost your sales. You become aware of your competitors with pricing intelligence software and this can allow you to monitor their movements in real-time allowing you to have a better chance of success. You are also abreast with trends which can keep you ahead of your competition.
Maximize profit margins
Price intelligence software enables you to increase your profit margins substantially. With pricing intelligence, you are instantly aware of every opportunity. This allows you to make the most of an opportunity when it presents itself. If you provide customers what they need, even at a higher price, they will purchase it. Pricing intelligence is about smart pricing which means you can make an impressive profit from a gap left by your competitors without losing customers.
Manage inventory efficiently
Price intelligence is based on several factors including historic data, current competitor data, and market trends. When you have this information at your disposal, you can make smart inventory decisions. You want to avoid overstocking and understocking because you will lose sales when there isn’t enough and you will increase costs when there is more than enough. Pricing intelligence can throw light on inventory so you always have sufficient stock available to satisfy customers and reduce inventory carrying costs.
Improve customer satisfaction
Getting your pricing right at the right time is crucial and it also plays an important role in customer satisfaction. Pricing intelligence enables you to improve customer satisfaction as you can provide personalized deals to your customers. A satisfied customer is much more likely to make repeat purchases and become a loyal customer. With the help of pricing analytics, you can target your high-value customers who are most profitable to your business.
Imagine going through thousands of products every single day and monitoring their prices. It is practically impossible especially when you retail products across various categories. Pricing intelligence software is designed to constantly monitor and give you prompts when there are changes in the market. This automation helps you save time and effort as you have a sophisticated tool that gives you vital insights into pricing when it truly matters.
Attract new customers
You are essentially fighting for getting customers on board to buy your products. Pricing intelligence gives you the advantage of knowing when to change your prices for the most benefits. Without pricing intelligence, you won’t know when to do so. If your competitors have their prices low and you have them high, you will lose customers. Alternatively, if your prices are too low then your products can lose value in the eyes of customers. Pricing intelligence enables you to set the price just right so it’s a win-win.
Pricing intelligence isn’t an option for retailers that want to stay competitive online. However, the success from pricing intelligence depends entirely on the tool you use. A price intelligence tool like Intelligence Node’s gives you a complete 360-degree view of pricing. This enables and empowers you to make precise pricing decisions that are in your best favor. It offers insights that are practical and useful in making critical pricing decisions.