Knowing the influence that market prices have on users’ purchasing decisions and how this can affect your store is known as Price Intelligence. This knowledge is acquired through price analysis of your competition within your vertical, and allows you to adapt to any market situation.
How does it works?
The software automatically traces and matches those products with the same EAN – an international code to identify products-. In the case that competitors’ items do not have this code, the program relates the different items through common characteristics: their title, picture, etc… and proposes possible rival items that you can accept as equal.
Then, the system will show you basic information about the products – if they have stock, the price history, etc. – and the competitors’ stores – such as the price range they have, the distribution of brands in their catalogue or the percentage of stock in their inventory – and will show you what level your product is at when compared to the competition.
Price intelligence software allows you to be updated on the movements of the competition automatically and periodically, which means a relief of work for your e-commerce, which translates into more time to choose the effective pricing strategy and an important money saving, which allows you to be more competitive.
Price strategy based on competition
Using Price Intelligence allows you to know what prices your competitors are setting and to identify their pricing strategies. You can use your competitors’ information to ensure better prices from your suppliers. Combined with the dynamic pricing tools, with Price Intelligence you can automatically and periodically adjust the prices of your products to gain more competitiveness and increase the conversion rate of your items. This dynamic price adjustment is subject to the rules that you set. These rules allow you to always be more competitive than your rivals while respecting the profit margin.
Increase market share
Thanks to the knowledge of the prices of your rivals you can design campaigns of engagement with the users to turn them into clients and to fidelize them. Competitive prices are important, but appealing to feelings is a viable strategy in the medium and long term, and using social networks to connect with customers is a clear case in point.
Optimise performance on Google Shopping
With the vision of your store that provides you price intelligence you can find out which are the products of your e-commerce that are really competitive. Uploading all your products to the Google Shopping feed would be counterproductive, as you would be wasting your budget on underperforming items. The software allows you to automatically send those products you want to update in the Google Shopping feed on a daily basis.
Identify market developments
With the use of Price Intelligence you will be able to check what the elasticity is – maximum and minimum variations of product prices according to the demand – and know which are the items with the highest performance. The more you know about your products and their positioning in the market, the easier it will be for you to adjust the margins to get the maximum benefit. Market insight can help you identify patterns and anticipate changes in the market and set up a strategy accordingly.