You want to ace it, but so do they.
You know your market, but so do they.
You have a huge array of products to offer, but so do they.
So how do you actually beat them at this game?
The answer is Competitive price intelligence!! If you aren’t leveraging big data to your advantage, it’s about time you start. You can be sure at least some of your competitors are keeping an analytical eye on you.
What can big data do for a retailer?
- For starters, it can help you spy on your competition.
Since the inception of economy and market system, merchants and retailers have been trying to ace the race. Now big data just makes it all that more convenient. With the right tools, you not only will know what your competitors did last week, year or month; but you can find out what they are doing right now.
Big Data analytics give real-time Competetive Price Intelligence insights which provides the ability to:
- Identify profitable prices that achieve strategic and financial objectives
- Forecast and measure the impact of price changes
- Automate the pricing process to ensure consistency of price image while eliminating manual, error-prone tasks
- Execute competitive positioning while maximizing profit opportunities
- Simulate real-time “what-if” scenarios for predicting alternate strategy outcomes
- Localize prices based on shopper demand and competitive behavior
Despite this 75% of retailers do not use real-time competitive analytics.
- Comparing apples to mangoes.
One huge advantage that big data offers is the possibility to compare different types of info and find out connections in between them.
What is most likely to revealed upon analysis of such info is-
- Prescriptive Insights: Recommendations as to the type of actions that should be taken
- Predictive Insights: Scenarios that are might occur
- Diagnostic Insights: What happened in the past, and why
- Descriptive Insights: A ‘what’s happening now’ viewpoint based on real-time data
How it’s done?
There are a tremendous amount of insights that big data can unearth, but to be able to use it for your benefit requires a structure. Here are a few things to look out for –
- Prove Automation Potential:
Always check that the processes you are planning to apply can be automated or not. Although everything today can be automated, it’s always good to be thorough. You don’t want to end up manually doing such a hectic task.
- Validate Sources:
Be certain that the info you are putting for analysis is accurate and from a credible source. Also, ensure that you feed the right kind of info for the most accurate results.
- Develop Instant Insights:
Create applications that make it easy for employees to pull the real-time info and put it up for analysis. This can come in very handy when dealing with tricky customers.
- Gather Feedback on Performing and Non-Performing Locations:
The best thing about competitive price intelligence analysis is the location-specific insights. This form of insights can be some of the most valuable bits of info you will come across.
- Determine Strategy Violations:
Make your strategies smarter. Your strategy can’t be as simple as lowering the price every time your competitor does so. Your strategy should enable consistent development and most beneficial actions based on your sales strategy.
- Formulate Basis for Clearance planning (markdown plans):
Always include long-range planning in price lowering by matching your competitor’s actions. For example, you need to consider if lowering the price on a given item deplete inventory too quickly?
Want Competitive Price Intelligence to glam up your business? Visit us at Datahut, your big data experts.