On any given day, retailers can attend workshops or webinars, read blogs, white papers, reports, or newspaper articles, and get advice on marketing, customer care, big data, social media, and use of mobile in shopping. It's surprising how many retailers overlook the BASICS -- assortment and pricing -- the foundation on which their business should be built, and from which all else follows. In today's competitive environment, retailers should not only track competitors' prices in general… they should track their competitors' prices every day.
Here are six compelling reasons to track your competitors' prices every day:
1. There's a whole lot of price comparing going on now, e.g.:
* Google Searches - 13% of consumers start out using Google for their product searches. (Forrester).
* Comparison Shopping Engines - 40% of online shoppers for household goods use comparison shopping engines. (Experian Study).
* Comparison shopping with mobile apps - 31% of smartphone owners comparison shop using their mobile apps. (Pricegrabber)
* The "Showrooming" Phenomenon - 56% of consumers this holiday season will use their mobile devices for checking prices at other places.
* Your Competitors are tracking your prices. Need I say more?
2. Accumulating daily price information allows retailers to map and chart price history and dynamics, i.e. the progress and development of prices over time, which helps:
* Set optimal price points.
* Gain visibility into your competitors' pricing strategies and tactics.
* View reaction to your own price changes.
3. Allows retailers to price proactively rather than reactively:
* Email alerts from your pricing intelligence provider keep you on top of the game.
* Reduces tracking and responding time to near zero effort.
* Response time to competitor price-changes - goes from taking weeks to months, to days!
4. Helps retailers stand up to automated pricing systems:
* Understand the rules used by the automated pricing system.
* See how competitors react to automated pricing systems.
* Follow reactions to your price changes.
5. Gain a real advantage over your competitors:
* At this point, few of your competitors are tracking you daily.
* Acting and reacting more quickly changes the game.
* You will have visibility they just don't have.
6. Enables retailers to devise better pricing strategies:
* You can reverse engineer your competitors' tactics and strategies.
* You can easily monitor how competitive you are on a regular basis.
* You can see if your strategies are paying off.
For a lot more detail and information on these points, contact Upstream Commerce and take a FREE test drive of Upstream Commerce's Pricing Intelligence Software today.
Retailers shouldn't expect to profit and succeed if they don't have the basics of product assortment and pricing as a foundation in relation to your competition. If you don't have a solid business foundation regarding product assortment and pricing, and you're not sensitive to and aware of your competition, you shouldn't expect to profit and succeed. Without this basic foundation, you may have customers and sales, but no profits. And if you don't have a clue to your value or profits, what point is there for you to be in business?