When establishing a dynamic pricing strategy, it is essential to take into account the critical moments in which possible price changes will occur in our competitors. However, there is also a factor that retailers should not lose sight of, and that is to emphasise the dates in which the buying customers themselves compare prices online.
In general, it is logical that both situations coincide. On one hand, the e-Commerce will guide its dynamic pricing strategy based on the dates in which it is more likely to attract sales from a greater number of potential customers. On the other hand, users will be more aware of the price tracking of those products that interest them at times when they know they are susceptible to change by online stores.
Having a calendar that defines the key moments for comparing market prices essential to be able to carry out the necessary actions & changes at the precise moment.
A priori, there are date that are common knowledge which surely already appear in the sentences of any online seller and in their pricing calendar: Black Friday, Christmas, Mother’s Day and Father's Day, Valentine's Day, the recently established Single Day in China... However, it is also essential to take into account the specific dates in each sector so as not to dissociate the business from the reality of the market.
Clear examples of these cases are the typical January sales throughout the textile and fashion sector or Easter for the travel and tourism sector, but you can also cite other more striking dates such as St. Patrick's Day in Irish e-Commerce or other dates specialised in drinks and beer.
In the management of this pricing calendar, the sales and pricing teams must work hand in hand with marketing to establish both the actions to be carried out and to detect new trends that can be exploited by the on-line store. This will be what enables us to create specific actions via the e-Commerce until we can even incorporate them as a sign of our identity.
Today, this strategy, normally associated with branding, is already being seen in sales during the year with days as varied as that of the day of friendship, international kissing day or even unofficial celebrations such as Star Wars Day.
How do these dates affect the actions of the e-Commerce with the customer?
The fact of having fixed the key dates for price comparison supposes a huge advantage for any e-Commerce that we can break down into two main benefits:
Stay alert for changes made by the competition at any time.
Trace the pricing strategy together with balancing the different changes with the proposed sales prospecting.
However, from a pragmatic point of view for the customer, it is essential to take into account what was mentioned at the beginning of this post, and it is: online buyers also keep track of the price changes in stores where they make their acquisitions.
How to take advantage of this knowledge in advance? The answer is clear: maintain a strategy of moderate pricing, fair with the user and without cheating. We have already seen on other occasions how malicious price changes in the days before Black Friday do not make a good impression on the audience. No other reaction could be expected...
Knowing in advance the dates in which these comparisons are most likely to be made will not give the online store “carte blanche” to make indiscriminate actions, but it will be an element in its favour when making the necessary re-adjustments without which may be misinterpreted. In addition, obviously, to correctly select the day and time for these changes will be an advantage over the competition if we are the first to offer a better price for the most demanded products.
In short, having a programmed calendar within the dynamic pricing strategy will allow the -Commerce to readjust its prices in each of the most relevant moments for its audience. Keeping this calendar of events, and the pricing software that implements it, updated, will be vital to remain in the game.
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