The importance of monitoring your competition’s prices

How to create a market strategy by analizing competitors

- 4 Minutes read

To know where your product is positioned in the market is a basic task for the development of the commercial activity of any company. Doing so requires spying on competitors in order to create a market strategy that allows for competitive pricing without compromising the profit margin. Monitor the competitionto know your advantages and to have a global insight of the market.

To beat competitors may be complicated, but thanks to the price monitoring tools it is possible to have a more concrete perspective of what is happening in your operation markets and sector or sectors of your e-store. This sort of platforms,collect, track and compare data on price changes and stock of your direct rivals in the market.

Through these price intelligence platform you can easily follow the competition, monitor their prices, analyze them and update your catalog prices accordingly. Sometimes it will not be possible to lower prices because of the profit margin, but on those occasions look for a differentiating element such as a proper and updated monitoring and support during the online purchase may change the situation of your product and the perception and satisfaction of your customers.

Develop your market strategy by observing the competition

Through price monitoring it is possible to notice patterns and trends in the prices of your rivals. Doing so can help you understand your competitors’ strategies to place your product at an advantage in relation to the market. Observing the competition, understanding the market around your product, implementing strategies that increase the conversion rate while respecting margins are essential steps towards the success of your e-commerce.

Price monitoring tools

To determine where your product stands in relation to your rivals, you will have to spy on your competitors to find out their product prices. To do this effectively and efficiently, the best solution is to use digital solutions like the one provided by netRivals,which allows you to automatically and regularly track direct competitors and get updated data on their price changes so that you can make the right decisions and adapt to the market’s current situation.How to create a market strategy through monitoring

How to create a market strategy through monitoring

Even though price factors sometimes have little margin for action – lack of stock, or exaggerated increase in demand – this is still the differential factor for the consumer when it comes to buying a product. The customer tracks and compares the prices of different sellers to choose the product they will buy. The basis for the success of your market strategy lies in three metrics: the price index, the margin and the conversion rate. There is no better way to adjust your price than by spying on your competitors’ prices and setting a price in correspondence. The margin should be kept to an unquestionable minimum to avoid losses, while the conversion rate lies in the ability to sell your product. Sometimes, when it is not possible to adjust the margin any further, the best option is to differentiate yourself from your competitors in a non-economic way. Focus your efforts towards optimizing the consumer experience before, during and after the transaction is the best way to compete with competitors.