Monitoring the competition prices

06/06/2014

Angela de la Vieja

What should we bear in mind when it comes to monitoring our competitors? There are many issues to be taken into account when designing a price tracking strategy. In Minderest we are going to give an answer to the main variables:

Guidelines to choose the competitors:

- What is your client´s target? We will choose those company which are aiming the same target. We can use Alexa and its audience metrics ( gender, age, etc.) We can use El Corte Inglés as an example. Do our e commerce metrics coincide with those of El Corte Inglés? We will carry out this first analysis in order to filter our potential competitors.

- Visitors entry keywords. Very important to use similar tools to Alexa in order to measure which are the keywords by which our potential competitors are receiving visitors. A direct measure of competitiveness is the key words coincidence. In other words, there could be a web site addressed to our target and with very similar products, but its positioning in search engines is no good, reason for which the clients are not ending up purchasing in his web.

- From the above competitors, which ones serve their products in the same regions or countries that we do? We will not take into account those who operate in different areas or which only share unimportant areas for our business

- What are their delivery times? If we deliver in 24 hours the great majority of our catalogue, we will compare ourselves with other competitors with similar delivery times. The great majority of clients that search for 24 hour delivery times, will not buy in other e commerce who´s delivery times are several days.

- What % of products does our e commerce share with the competition? Let´s make a selection of products in our shop, the 30 top sales for instance and let´s look for this products in those potential competitors. What is the % of products that we find? The greater the % the greater the competitiveness rate.

Once we have applied the above filters, we will have a very good selection of which are our direct competitors. Finally, there is only one more question we should look at: how much time and resources do I have to monitor my competitors? In other words, How many competitors am I going to be able to handel? Even though a competitor´s price monitoring software easies the task, I am still going to have to review each product price. For this reason, we will order the competition by % of shared products in order to choose the amount of competitors we will be able to handle. Generally this number will be between 3 and 6 competitors.

If we the above job has been carried out well, we can be sure we will control our target market, differentiating our company from our competition.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.