In today's transparent, always-on, highly competitive marketplace, savvy retailers are quickly adopting "the best technology so far" to compete strongly in the pricing arena. Price optimization software melds big data, science, and historical information to help retailers price millions of SKUs, product-by-product, in the most accurate, timely, and profitable way. Essential components of price optimization solutions are predictive analytics (using accumulated historical behavior to predict and project successful pricing); dynamic pricing; and competitive price analysis.
With regard to competitor's prices, other retailers' price behaviors are always relevant to what you do. For example, if a competitor is beating your prices, you'll know that you may not realize the increased sales you expected; or, if you see that a competitor has increased his/her prices, you may benefit from having a lower price).
What price optimization empowers the retailer to do:
1. Use science to turn big data into actionable insights.
2. Base pricing decisions on the most accurate data available.
3. Anticipate and merge customer needs and market trends.
4. Manage inventory in a principled, logical way.
5. Adjust prices for maximum profitability on an as-needed basis, in real time.
6. Understand the lifetime value of products.
7. Allow automatic price adjustments at the desired level of control.
8. Have full control within the rules, including guardrails to keep prices from spiraling out of control.
9. Move and manage inventory more efficiently and effectively.
10. Make shoppers feel their favorite brands are delivering value.
11. Control and manage the need for markdowns and promotions.
12. Provide consistency across the omni-channel.
13. Prioritize your most timely goals while keeping the next priorities ready to go.
14. Ensure alignment with business goals by giving power and information to different departments and levels of responsibility.
The ideal price optimization solution provider has:
* Powerful tools, simplified operations.
* Solutions, out-of-the-box pre-integrated.
* A lot of experience gained from working with, listening to, and supporting numerous clients.
* The ability to analyze your data, share valuable insights, and help engineer the outcomes of your stated objectives.
* An unimpeachable ethic to protect your proprietary data.
* Assistance to help you strategize and implement.
* A customer success team that can smooth the adoption curve for you.
* The dedication to help you explore additional pricing opportunities.
* The ideal price optimization vendor has all their solutions under one roof, is a one-stop-shop for all your critical pricing automation; and a no hassle, dedicated customer success team to help with all your needs and questions.
Finally, the "proof of the pudding" to anyone who wants to see how an optimization solution actually works, is a demo by the vendor, using your own current data.
Bottom line for your bottom line
Enterprise retailers are finding that the path to effective pricing is found by combining the insights of science with big data of historic value, data of your company, and data of your competitors to reveal the biggest profit possibilities for each of your products.
By integrating predictive and dynamic pricing solutions, competitive data, and the company's honed knowledge, retailers can anticipate consumer needs, adjust prices on an as-needed basis, and find the most profitable pricing. The key to achieving these strategic objectives is to react appropriately and objectively, in a timely manner. Price optimization helps do this.
When retailers were slow, initially, to adopt these tools, it was attributed to fear of the unknown; reluctance to give up old ways and infrastructures; entitled attitude that price was "too precious a commodity" to be entrusted to someone else (including machines); and a desire, by some, who thought they could do it better themselves.
So, as with many innovations and disruptions of our modern times, retailers who wonder why they didn't "do it sooner" -- are eagerly joining THE RACE TO THE TOP -- thanks to the latest price optimization technology.