Retail Analytics in Dynamic Pricing

Retail analytics

Shopping trends have changed, so is the behaviour of the customers. Every shopper wants fast, cost effective and easily accessible shopping solution. Who else but online shopping sites offer them all this and lot more! How do they perform so effectively? This new phenomenon is named as Dynamic Pricing!

Overview on Dynamic Pricing

To meet the demands of today’s shopper you need to be innovative with your offerings and highly sensitive towards pricing. How can you do it? Well, there is one quick fix solution Dynamic Pricing!

Today’s shopper is smart, well informed and vocal, hence tagged as a super-shopper. Technology has given them freedom to choose and pick the best deal within budget. There are various online sources wherein amazing offers are floated on a regular basis. Even personalized offers are mailed or messaged so that customers don’t lose interest and keep buying stuff from a particular online shopping portal. For a customer, besides cost effectiveness online shopping saves lot of time and effort. Sitting anywhere anytime you can easily shop, which is so convenient for someone who is busy. Hence, most of the online shopping portals and other e-commerce websites are adapting retails analytics for effective dynamic pricing.

If you want to earn maximum profits through your business you need to offer best prices to your customers. Whether you are running a hotel chain, a retail outlet or an airline company, the core area is pricing that directly affects your company’s profitability. And if you own an e-commerce business then you can’t do without an effective dynamic pricing solution. We have some great examples like Amazon who is doing good as they have adopted dynamic pricing model to its core.

How to design Dynamic Pricing

There are several factors that determine an effective dynamic pricing model. The key determiner is the customer’s willingness to pay. Yes, without knowing this you can’t predict a workable pricing model for your business or product. This particular aspect further depends on various internal and external factors. Retailers have to use dynamic pricing strategy taking into account external factors such as competitive products and their prices, conversion rate, traffic and demand. Internal factors include brand image, supply, goals etc. Using both these factors retailers design an optimized pricing model.

Retail analytics is one of the motivating factors that have greatly helped businesses design their winning dynamic pricing strategy. This analytics data is used by the retailers in rising or reducing their product prices – as per the situation. Some retailers use price cutting strategy in dynamic pricing whereas most of them stick to price increase strategy, which is generally considered a business boosting approach. Amazon follows price cutting model as they prefer sacrificing profits over extreme market share. But this is not a sustainable model for most of the companies; hence they prefer the second option & price rise. There are many instances where price rise helps boost your revenue. For example, if your competitor is running out of stock or there is high demand for a particular product, rising prices can considerably boost your revenue. Whichever strategy you pick, you need to be within dynamic pricing parameters. One step here or there can affect your business performance!

Importance of Dynamic Pricing

Today market is highly competitive and the customers are highly price cautious. This is very obvious as the market has a lot to offer. Moreover, they are educated, smart technology friendly buyers who know what exactly the requirement is and what the right source is and where is the best deal available. Can you fool them? Not at all!

Technology is fast and advanced and easily accessible too. With the coming of smart phone, things have greatly changed. Now, internet access is all the time and a single click gives them all the information about the shops and the prices. They can easily do price comparisons and can crack the best deal within no time. Shopping is that easy! To match up to this volatile environment your business strategy needs to be dynamic, especially pricing! You have to make yourself aware of your competitor’s pricing changes, that too, in real time. So, if you want to be in the competition and remain profitable at the same time, be real. Use dynamic pricing to find an optimal price for your products. For introducing a new product in the market, it is essential to use price elasticity strategy. It greatly impacts your product’s sales.

Use dynamic pricing strategy, a cutting-edge product pricing solution, and improve your customer retention rate in the industry. This pricing model is relevant and effective in every possible manner! Choose the best dynamic pricing strategy and be on the top.

Pricing optimally is the need of the hour’s Embrace Dynamic Pricing Solution!

Let’s create something brilliant together!