Historically, retailers rely on pure gut reactions, manual tracking, and personal experiences to optimize their pricing associated with their competitors. However, this manual approach is not very effective any longer. It is not even feasible or practical, especially that the market is getting more dynamic and competitive.
Today, if you want to collect real-time information about their pricing, products, promotions, and assortments, you have to track them daily. The good news is that you can use the power of technology to be more competitive.
Why Using Price Tracking Tool Matters
The eCommerce environment nowadays tends to be more multi-dimensional than before. For instance, after you changed your prices and beat your competitors, you will notice they will follow suit.
As you start tracking your competitors’ prices, you will see how pricing changes take place and notice how your competitors react to your price or pricing changes. Through competitor price tracking, you can determine what market trends are happening lately.
Having this knowledge help, you create strategies and tactics you can apply to set the best prices. After you understand the strategy made by your competitors, you have a better opportunity to compete more effectively. Plus, pricing optimally is a lot easier.
If you do not want to miss any pricing opportunities, you have to be flexible and opportunistic with your pricing. A competitor price tracking software helps keep you alert on the products you have labeled to be checked to compare with the competitors. You do not need to make extra effort to keep on top of the competitors’ prices.
Advantages of Practicing Competitor Price Tracking
Here are the benefits of competitor price tracking:
Combat eCommerce Incumbents
If your competitors have dynamic and automated pricing systems, they tend to become aggressive and try to price below you. However, you are aware of their prices; you can compete with them effectively. With tracking prices every day, you price competitively.
Minimize Price Tracking Mistakes
For manual tracking, most retailers opt for Excel to store competitors’ prices. However, you can make mistakes once data are transferred. If you use a good competitor price tracking tool, eliminating the risk is much easier.
Improve Data Analysis
The competitor price tracking software helps you learn about your products’ life cycle and whether they could be priced higher or cheaper over time. The tool also enables you to determine whether price changes should occur regularly or seasonally and whether promotions or discounts would be effective.
Instead of employing people to track your ROI and prices, you can go for a competitor price tracking tool. It is a more economical, accurate, and effective option.
When Does Competitive Pricing Offer A Good Chance of Success:
eCommerce is continuously becoming more crowded and competitive. This means prices change more frequently than ever. That is why individuals or groups involved in this environment should perform data analysis, price optimization, and strategic decision-making based on real-time data.
Below are the scenarios when competitive pricing offers you a good chance of success:
- Your offers are convincing;
- Your competitors raise their price or have some issues about delivery or quality;
- You can easily make a switch;
- You have identifiable differentiations;
- You have more well-known competitors that match your prices.
Competitor price tracking is critical for retailers alongside good tools. Without a competitor price tracking software, it would be difficult for you to compare. It will help keep you on top of the competition while ensuring that you can compete on price when you need to. You can also identify the products that are selling well and then keep them top of the line.