The 4 key price monitoring indicators

07/11/2018

Angela de la Vieja

In the new digital paradigm, all brands and companies that sell online constantly monitor what their competitors are doing. Price monitoring, inside and outside of marketplaces, is essential to maintain their activity within an increasingly unrestrained market.

Price monitoring and management tools are increasingly demanded by these users. They will split the actions that are framed in the pricing strategies of each brand. However, the obtained results require good analysis and interpretation if you want to make the right decisions.

In this respect, it should be noted that the price monitoring tools are on track, in terms of the quantity and complexity of the data collected. However, it is important to understand which indicators are key for monitoring competitor pricing and to consider the correct ones before making decisions. Here we highlight four that can become very relevant and which go beyond the mere fluctuation of prices.

1. The average price of the product over time. At the height of the digital price battle, continuous and aggressive changes can cause what is known as price erosion. This erosion causes the average price of certain products to suffer large devaluations. Knowing under what circumstances these situations occur is key to not fall into the trap of offering unusually low prices and end up not generating profit. The volume of sales must always compensate the price offered.

2. Market behavior patterns. Who’s who within your competitors? Identifying the relevant actors within the market is essential to know what the true steps to take are. Who is the first to lower price? Does it make sense and is it reflected in the results? Guiding us by non-sensical strategies within our sector can have us incur serious errors. Having a clear idea who is the leader to follow is key to our own references.

3. Characteristics of competing businesses. This does not mean that you do not know in advance who you will face on the Internet, far from it. However, it is essential to compare prices and sales results with competitors that are similar to our level. In a project to improve our position, knowing how to limit our aspirations is essential to promote successful growth. However, it is important to consider who’s pricing strategy you can assimilate, for a specific brand, in a way as not to lower profit margins when competing with others.

4. Temporary dimensions. When analysing our competitors price fluctuations we already know that it is necessary to check if these correspond to dates of offers, sales, promotions, etc. But, if we go a step further, we will see how not only the calendar is important in this respect, but that there are many other temporary dimensions that can affect the products price and, predictably, any increase in sales. Seller activity studies, in platforms such as Amazon or eBay for example, reflect how the price of some products may vary during the day, in anticipation of the demand that exists at certain key moments.

Taking these points into account is of vital importance when it comes to correctly analyzing the data collected by a competitive price monitoring tool.

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.