In every industry, customers have certain expectations, businesses tend to have similarities and competitors are trying to thrive, and this will give your company some goals to work on, but how do you know if your goals are realistic and achievable? Maybe you have guessed right: Simply by benchmarking your reduced prices during the sales season. But, how come?
Let’s face it, reducing prices is not an easy strategy for companies who want to earn high profits, yet lowering the prices of your products and services is a common strategy during sales seasons for several companies. So before going further with the importance of benchmarking for reduced prices, let’s define first what sales season means.
What are Sales seasons?
Sales seasons refer to certain periods of the calendar year when companies reduce their products or services during special commercial seasons of the year, for example in Spain in terms of shopping, customers can find special offers in stores all year round, but still there are still some specific periods when there is up to 70% discounts on original prices. Surprisingly enough, July and August are still the top discount months for the summer season.
These discount periods can help you increase your sales by reaching new customers and close special deals.
Why is benchmarking for reduced prices important?
Now the importance of benchmarking for reduced prices is to identify the key activities of your competitors that have the most significant impact on customers’ demand, especially that benchmarking is a flexible process that you can apply for almost any period of your business.
You can compare in real-time your competitors’ discounts and track how much customers are willing to pay and predict their needs, because we know that sometimes customers don’t like to miss opportunities and will act immediately to prevent losing them, and this can help your business organise your benchmarking analysis for reduced prices.
But you know what else is also important? Reduced prices on some products doesn’t have to be only for certain periods. Businesses need to be creative and promote products that catch the customer’s attention considering the fact that these products are a limited-time offer. This is important as customers’ needs change through year sales and any business, small or large, needs to complete a benchmarking analysis to track how competitors are fulfilling the market needs.
To sum up, benchmarking on certain periods of the sales season can allow your business to have more insights on how you can use the same discounts for certain products that easily attract customers.