No online website is an island. It is surrounded by many thousands of other websites offering competitive products. An enterprise’s pricing strategy is a crucial factor to its survival, so there is no room for guesswork. Acquiring real-time competitive pricing intelligence is vital because competitors’ prices for similar products to yours are highly dynamic. In order for your brand to thrive, you need to gain an edge through price optimization, which is only achievable via an AI-based pricing intelligence tool.
Several use cases where AI-based competitive pricing intelligence can tip the scales and sales in your favor
Ensure consistent and accurate price comparisons
As the volume of products you handle grows, the harder it gets to keep track of your own SKUs and your competitors’ products. In addition, due to the proliferation of items, only AI-based algorithms based on price crawling can enable you to pinpoint similar or identical products sold by competitors under different names or labels. By attaining a holistic picture of your competitors’ products, you can acquire actionable competitive intelligence and effectively follow their pricing strategy.
Create a timely pricing strategy
One of the main factors that affects competitive pricing is timing. An AI-based marketing analysis platform provides you with crucial real-time data about special offers and sales campaigns offered by competitors. It also yields historical data about the timing and products displayed in their past campaigns. Study this information immediately and offer counter sales simultaneously or even slightly earlier than they do. Price optimization at precisely the right moment is an excellent strategy to lure new customers.
Choose the best pricing strategy at every stage
Due to the dynamic nature of product pricing, your pricing strategy may need to change over time. Various factors affect your strategy: Is your enterprise just penetrating the market? Are you offering a new niche product? Are you bundling products? Apply the most effective strategy at the right time but be ready to change it as your brand grows. Use competitive product benchmarking to make the right decisions:
- If you are a new brand or enterprise attempting to penetrate the market, you may choose to lower your prices in order to gain a foothold and raise brand awareness. While profits may initially be low or you may even be suffering from a calculated loss, you can raise prices once you have established yourself.
- If you are introducing a one-of-a-kind or bespoke product, at the initial stages you may take advantage of your competitive advantage and charge premium pricing. Justify the relatively high price by offering striking packaging and advertising your item’s uniqueness.
- Bundling products is a strategy that enables companies to sell multiple complementary items at a lower price. Bundle pricing allows a brand to price intelligently while attracting customers to a perceived bargain.
- Optional pricing is closely connected to optimized product cataloging. When displaying a product, offer additional options to upgrade the offer. For example, if your company sells camping gear, make a special offer on a backpack if a buyer purchases a tent.
An AI-based marketing analysis platform, which provides competitive pricing intelligence for marketplaces, brands and enterprises, is not a luxury. It’s a must for any business seeking to make its mark in a highly competitive online retail environment.
Want to learn more about the benefits of competitive pricing intelligence? Schedule a demo today.