E-commerce Tips - How to Use Competitor Monitoring to Optimize Your Pricing Strategy

 

By using a fully customizable and automated intuitive monitoring platform to Competitor Monitor, intelligent retailers are taking SMART action on …...

1.       Track Daily Changes

Intelligent online retailers are making smarter decisions around market changes and their product assortment performance compared to their competition.

2.       Receive Customised Price Comparison Reports

Intelligent online retailers receive actionable intelligence on the cheapest and most expensive products on the market, out of stock and delisted products while implementing recommendations from automated audits on individual products compared to the cheapest competitor match or alternative.

3.       Monitor Price Changes  

Intelligent online retailers have full visibility on any product price changes from target competitors including change amounts by value and percentage.  Intelligent online retailers use this to spot opportunities to increase margin.

4.       Set Unique Triggers

Intelligent online retailers set unique triggers and are informed when a competitor reduces product prices below a pre-set percentage within a specific product category or across their full assortment. This could indicate competitor strategy to begin their seasonal sales or discounting initiatives, providing intelligent retailers with actionable information.

5.       Understand Historical Trends  

Intelligent online retailers use historical trends to adjust prices at notable periods, run certain promotional incentives to capitalise on a forecasted opportunity or even drop a whole product line altogether and maybe consider new products that may help achieve their objectives. This could be increasing sales volume, higher margins or both.

6.       Develop Scenario Plans

Intelligent online retailers receive actionable insights that complement their business scenario planning. This could be looking at trends to see how competitors have priced based on seasonality’s, new product launches or even end of line stock.

7.       Receive Smart Recommendations

Intelligent online retailers receive recommendations based on set goals. Some retailers aim to offer the most competitive prices and receive custom recommendations on products that could be reduced to be the cheapest. Others may want to be 10% cheaper than their closest competitors at all times and receive recommendations on how and where to increase prices while being most competitive.