A benchmarking strategy consists of analysing the prices of the competition, with a clear objective: to understand the competitive position of ones own offer in relation to that of the competitors.
Many ecommerce, increasingly, give a strategic value to price monitoring and price intelligence technology. The ecosystem of electronic commerce is increasingly dynamic and the movements of competitive prices directly affect sales. When an ecommerce applies the intelligence of prices as a pillar of its commercial strategy, it is able to anticipate the price fluctuations of the competitors and adjust their prices so as not to remain out of market.
The value of benchmarking
The objective of doing benchmarking is clear: to know the pricing policy of competitors. But in reality, the scope of the analysis goes far beyond the price and requires analysing the product catalogue, understanding the movements of stocks and, of course, observing the price movements of the competitors' ecommerce and establishing a dynamic pricing strategy.
Speed is a key in ecommerce, and, the ability to react is absolutely essential to remain competitive in a market that does not stop changing, and does so increasingly faster. In this environment of unstoppable dynamics of electronic commerce, a benchmarking strategy needs to have a price intelligence technology to achieve that margin of anticipation so relevant to business success.
The price monitoring tools make this margin of anticipation a reality with three clear advantages for the business:
- Detailed data. Price monitoring solutions provide maximum granularity information. This implies a very great level of detail along with a large breadth of tracking capacity. And with these two premises you can achieve a huge reach and reach the maximum detail of the complete catalogue of any ecommerce.
- Real time. The price analysis tools provide an immediate view of the market, through the creation of tracking rules and alert systems that allow you to be aware of what the competition does at the moment, in real time. This immediate knowledge of the movements of the competition is the key to monitoring.
- Automation. Like all price intelligence software, a start-up is essential in which the competitors to be tracked are defined, the products and prices to be tracked, the catalogue and stocks to be monitored, etc. However, once this effort has been made for the initial start-up, the tools work in an automated way, tracking data, triggering warnings and presenting reports.
Benchmarking and price analysis tools allow to have information quickly and easily, automated and in real time of the movements of the competition and the market situation, which allows to make informed decisions and save time and money, so that they reveal themselves as the way forward for any ecommerce that wishes to remain competitive.