The importance of tracking competition prices for brands

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Angela de la Vieja

"Vodafone follows in the footsteps of Telefonica and Orange, and raises its rates", "Netflix could raise its rates in view of the movements of its competitors." News articles such as these, which we see daily in the media, highlight the importance for brands to monitor the prices of the competition and update their prices based on the movements observed, and to do so without making mistakes.

Brand positioning largely defines the price of products. And, as you know, price is the first factor of the buying decision for the majority of consumers. But is the price based only on brand positioning? To what extent are more objective aspects such as the quality of the products involved?

Many times the perception of the quality that is created around a brand, as with Apple, leads customers to consider all their products as the best on the market. But is the iPhone the fastest smartphone on the market? And one that offers the best image quality? Some of these points are debatable, but it does not prevent that the brand is considered one of the most valuable in the world, a value that is reflected in its pricing policy and ultimately determines the prices of other companies in the sector.

Question of perception and comparison

The brand perception that the owners and workers of a brand have is not the same as the perception that the consumers of that brand have. There is no point in considering yourself the ideal brand for urban youth looking for their first car, if reality shows that the young people who just took their driving license end up buying another vehicle. That is why it is fundamental to analyse how the brand is perceived: are there complaints in social networks? Are there negative comments on the web about the last campaign to promote a product? Or allusions to high prices in relation to perceived quality or comparative price competition? It's time to change.

Social networks have broken the barriers between brand and customer, and their interactions give a clear idea of ​​what they think about the brand and its products. In addition, followers of a brand in social networks are influenced by the messages and preferences of their friends. That is why it is fundamental to respond to these criticisms and suggestions, and to do so fast. To be accessible and close to solve any possible doubts that the customer may have before, during and after the purchase process, will significantly improve the perception of the value of the brand. It is about making the brand justify the price, not the other way around.

Adopting a dynamic pricing strategy allows you to change the prices of the different products according to the changes in the market in real time, something very simple to carry out with a program to detect the prices of the competition. This makes it possible to ensure that the product that the customer is looking for is available at the right time and at the right price.

The automation of the comparison process enables prices to be continuously updated and to avoid losing sales when a competitor decides to offer their products at a much lower price.

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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. 


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.


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