Since product assortment is at the core of every business's existence -- and those assortments can be in footwear, appliances, electronics, jewelry, household goods, furniture, clothing, books, accessories, tools, handbags, pet supplies, drugs, medications, groceries, etc. -- price & assortment optimization -- the better you stock, price, and sell that product, the more profitable and successful your business will be. Sounds easy, but it's not. Many retailers ignore the well-known saying, "You can't please everyone" and make the mistake of trying to be everything to everyone. When faced with many different types of consumers —all with different needs and wants—most retailers plan (what they believe are) effective assortments to please every customer they can -- However, in today's transparent, price competitive, consumer dominant market, there are many pitfalls.
Having the right product assortment at the right time at the right price is critical in retail. Assortment Intelligence is a powerful tool, with powerful matching capability, that tracks assortment changes at competitors' websites in real-time -- and, from the data, retailers determine how to adjust their own product-mix and pricing accordingly. You want every customer to find (and buy) exactly what they are looking for the first time they visit.
The reason for this is that once they "buy into" your website and brand, they'll keep coming back for more.
Assortment Intelligence Provides The Insights You Need
With assortment intelligence tools, retailers can view, compare and analyze the overlap between their own assortments and that of their competitors. Assortment intelligence identifies products that you and your competitors carry in common: If you have the same products, you'll want to price extremely competitively. With Assortment Intelligence, you'll find out if your competitors have products that you don't carry, but that you may wish to add to your assortment. Assortment intelligence also identifies products you carry that your competitors don't, or that are out of stock, so you'll be in a position to command higher prices. All of this -- product availability, price changes, and stock fluctuation -- happen in real-time on thousands and thousands of products. Assortment Intelligence is the only way to keep up with, and ahead, of it.
Why Assortment Intelligence is Important To Every Retailer:
Assortment Intelligence tools that track your competitors give you the data and insights you need to better optimize your own product assortment and prices. The result is happy customers and a growing bottom line.
Here are six persuasive reasons every retailer should invest in assortment intelligence:
1. Assortment Intelligence tools identify the right mix of products to please customers and keep them coming back.
2. Retailers will gain valuable insights into how competitive their product assortment really is.
3. Assortment Intelligence capabilities enable retailers to compete more effectively and increase sales and profit margins.
4. Retailers can look at their competitors' product assortments and quickly adjust their own product mix and pricing—with accuracy.
5. Assortment Intelligence transforms classic manual merchandising by giving retail owners, executives, managers and buyers actionable and timely product assortment insights.
6. Assortment Intelligence helps retailers stay relevant to their target audience by having access to information that ensures they provide the right price and have the right product assortment at the right time.
Bottom Line For Your Assortment Intelligence Bottom Line:
The use of quality Assortment intelligence keeps you ahead of the other retailers with whom you compete, lets you set highly competitive prices, and brings you closer to pleasing everyone. In the past, retailers could visit websites (or actually visit their storefront competitors), browse around a bit and then bank on personal experience and manual tracking to optimize their product assortment relative to competitors, but those days are gone. Assortment Intelligence tools, using advanced artificial intelligence, data analysis, data-mining and other algorithms providing retailers with comprehensive insight and real-time product and assortment intelligence are among the biggest game-changers in retail competition.
Retailers must not only know their competitors' assortments, and equally, or more important, what prices they're charging. The secret is to be there with the right product at the right price at the right time -- covering thousands of products simultaneously -- a true real-time endeavor made possible by use of a sophisticated Assortment Intelligence solution.
(This post complements our previous post: 12 Profitmaking Benefits Of Retail Assortment Optimization, and several other posts we've done at Upstream Commerce on Pricing & Assortment Intelligence --see below).