Every day, there are more and more-sophisticated business intelligence and analytics tools available to optimize pricing for thousands of products, help spot possibilities to reduce prices and increase sales, analyze data, determine ideal product mix, and increase overall profitability. And the competition grows more keen with every moment. In November, 2011, in Online Retailers Will Spend More $$$ On Competitive Intelligence In 2012, we cited a 2011 Survey by the Global Intelligence Alliance (GIA) noting that nearly 70% of North American companies planned to increase their budgets for competitive pricing intelligence in 2012; 94% agreed that they had benefited from competitive intelligence; 42% without a competitive intelligence operation intended to launch one within 12 months; and 69% planned to increase their investments into competitive intelligence over the next two years.
Reasons for needing and utilizing competitive intelligence were: The ever-increasing pace of online retail development; lines between store retailing and online retailing blurring; competition growing and getting more sophisticated; greater transparency; and increasing retailer-use of pricing intelligence tools.
Now, Results From 2012 Business Intelligence and Analytics Survey:
Here are results from a 2012 International Business Intelligence and Analytics Survey done by independent research and reporting agency, BizTechReports, for a global business software company based in the Netherlands. The survey queried 120 enterprise decisionmakers in North America and Northern Europe -- in companies reporting sales from less than $100 million (7%) to excess of more than $1 billion (24%).
Here Are Some Of The Decisionmakers' Responses:
1. BI&A solutions are critical to their business operations today. (78%)
2. It's growing more important to support day-to-day decision-making in their organizations with BI&A solutions. (73%).
3. Increasing change in the market is a factor driving the importance of BI&A in their organizations. (78%).
4. Reducing costs while growing revenue important as operating margins require organizations to seek new IT solutions. (78%).
5. Improving competitiveness by better use of BI&A is needed by line of business units in their organization. (80%).
6. Analytic/decision/operational tools (should be) easy to buy, low cost and can be modified/changed easily to quickly impact operational change. (68%)
7. Organization would be more competitive if all business users had direct access to BI&A tools tailored to their specific operational needs. (69%).
8. Modular pay-as-you-use economic models contribute to broader adoption of BI&A tools across different business units in an enterprise. (68%)
9. The ability of users to make changes (without coding) to enterprise software applications, including BI&A applications, would improve the ability to make better day-to-day decisions. (75%).
"There was a growing international consensus that Business Intelligence and Analytical (BI&A) tools employed by mid-to-large-sized enterprises must be more flexible, more affordable and provide more support for day-to-day decision-making," the report summarizes.
Bottom line for your pricing intelligence bottom line:
With the ever-increasing pace of online shopping, retailers have to act on their competitors' behaviors in real time to remain competitive and viable. To do so, they need to use the sharpest intelligence tools available to get the data to take correct actions in order to stay competitive and make sales, today and tomorrow.
Competitive intelligence is extremely important for online retailers because they need up-to-the-moment information on their competitors’ products and prices to gain pricing insights, identify significant pricing opportunities, and note comparative price distributions and trends.
The proof is all around as companies of all sizes act on the importance of learning, knowing, and responding to what their competitors are doing in real time -- both in the use of competitive intelligence in general, and pricing intelligence and analytics in particular.