In order to analyze the impact of the competitors’ prices on conversion rates, Competera Price Intelligence and OWOX BI were used for data collection and analysis. Real-time market data were converted to Google Analytics Enhanced Ecommerce format and then sent to Google BigQuery along with the details on 90+ million page views on Ulmart’s website.
This allowed for an in-depth analysis of the price elasticity of demand for every customer acquisition channel, product category, and product brand. Information about competitors’ prices at the time of purchase provided a greater insight into customer behaviour, adding a new dimension to the basic information about traffic source, customer’s location and their interaction with the website.
Basic example of BigQuery report:
Competera Price Intelligence service provided fast and reliable price and product matching with competing online stores and marketplaces. These pricing data were sliced by the region and product category and included additional information about product inventory, promotions and price adjustments. As a result, Ulmart acquired quantitative understanding of how the competitors’ actions affect their conversion rates.
For instance, computer products showed strong dependence on the competitors’ prices and promotions, whereas small appliance shoppers were less sensitive to a slight price difference. Price elasticity of demand was quite noticeable for tablets and even more so for smartphones and TV sets, reaching optimal conversion rate at 7-10% discount to the market average.
Deviation of price form the market average
Customer acquisition channel performance was measured to optimize marketing budget and discover new opportunities to increase margins. Such was the case with Yandex.Market, where Ulmart’s conversion rates were optimal at higher than average prices. On the opposite end of the spectrum, torg.mail.ru visitors proved to be extremely price sensitive.
Competition price influence
Pricing data and conversion analysis allowed Ulmart to significantly improve their business performance. With a clear view on the market, Ulmart is now able to make calculated price moves and manage acquisition channels with maximum efficiency. Competera provided key technology to develop Ulmart’s online merchandising system and their Ecommerce platform as a whole into market-aware price-intelligent solution.