Competera Price Index Tutorials

Furthermore, you need to recognize that the information about competitors and your sensitivity to them. This comes in terms of, both affect the conversion “right here and right now”, as well as online store positioning and customers’ perception on the long-term horizon.

Clients’ loyalty is an absolute measured parameter, especially for online retail. The loyalty is measured by customer churn, drop in sales as a consequence of competitors activities such as special offers, promotions, loyalty campaigns etc. Usually, such activities relate to price changes, because the price increasingly figures as the key factor of a purchasing decision, according to the latest PWC research.

Can you answer the following questions?

How does your price positioning correlate with market price or competitors’ prices?
Which products can you sell at a higher price without a loss of profit?
Which of your competitors (whom you consider being your competitors) are actually affecting your sales?

You can find the right answers to these and more questions with the help of Competera Price Index.

What is the Price Index?

The Price Index is a metric enabling the visualization of price positioning of your products, product categories, leading brands, and a whole assortment of your online store, regarding similar parameters of the competitors. This includes the market in general, especially if several competitors constitute it.

In addition, the Price Index detects which of the competitors, and how intensively, influence your sales during a certain period of time.

The unit of analysis of the Price Index is a Price Position.

Competera Price Index is one of the instruments within Competera Price Intelligence Platform. This displays how your price position correlates to the market price in general, but also to particular competitors or certain categories of products.

Employing Price Index, you know everything about the price positioning, and the sensitivity of your online store towards the market and certain players.

That is how the Price Index looks like within Competera

The intersecting assortment compares and analyzes the quantity of similar products available at your, and your competitor's, stores.
The green dashed line is your company in default.
The blue line (*it can be another color on your report) is the average position in the market regarding your company. For example, the current diagram shows that when considering the chosen segment of filters, all the competitors have higher than average pricing position of given products than the average pricing of your store.

The increases on the diagram signal that you, or some of the competitors, made a repricing. The market accordingly changed prices following one of the players.

You can explore the Price Index by different parameters: choosing required segment of competitors, product category, brands, KVI positions etc...

Here is an example of filter appliance in Competera Price Index:

This example demonstrates the diagram of filter appliance to competitors, and further identification of competitors by the parameter of maximum and minimum prices.

How to read the diagram:

Choosing a filter of the upper bound of the Price Index regarding price, makes a point of two upper graphs:

The graph #1 is the competitor with the most substantial difference in price due to the maximum assortment intersecting (the central tendency of pricing position among maximum prices of the market). In other words, this is the largest sample of similar products in your online store, and the competitor’s store with the maximum value of difference in price;
The graph #2 is the competitor, which doesn’t have an assortment intersecting with your store. However, there is some part of the assortment, where his price is higher than all the players’ prices: extremem value;

Within Competera Price Intelligence, you can form different segments for analysis on the level of products, product categories, competitors, brands and others.. In addition, by creating a special tag for the following work with Price Index or changing prices with Competera Repricing.

How to create a customized tag in 10 seconds

with a set of elements (products, categories, brands, competitors and etc.) to make an analysis within the campaign of Competera Price Intelligence:

What is the “Price Position” as a base for Price Index forming?

Price Position is price index basket, formed on the base of a few priced couples.

Pricing pair is in the case of when you and one of your competitors have the product in stock, and the price is available.

Pricing basket: the diagram shows the assortment intersecting with your competitors - the base of Price Index calculations.

SKU	My Price	Competitor 1	Competitor 2	PIx SKU	PIx
SKU₁	1	A		PIx₁	PIx₁ + PIx₂ + PIx₃ 3 = PIx Price Index average performance against all competitors and their assortment
SKU₂	2		B	PIx₂
SKU₃	3 Our Products in stock	A Two pricing pairs: products are in stock at your and competitors' stores	One pricing pair: only one product is in stock at your and competitor's stores	PIx₃ Price Index average performance against particular product and competitor

SKU

My Price

Competitor 1

Competitor 2

PIx SKU

PIx

SKU₁

PIx₁

PIx₁ + PIx₂ + PIx₃

= PIx

Price Index average performance against all competitors and their assortment

SKU₂

PIx₂

SKU₃

Our Products in stock

Two pricing pairs: products are in stock at your and competitors' stores

One pricing pair: only one product is in stock at your and competitor's stores

PIx₃

Price Index average performance against particular product and competitor

Price Index has been calculated in terms of the basket of three coincidences. This means that only three similar products on that day were in stock, both your store’s and your competitor's store. Such an excerpt is not enough for decision making, or making an adequate analysis.

How does the average position of Price Index form for the common market?

The calculation operates by all the products in stock of your and your competitor’s store, if there are current price values on the products.
Every intersection of pricing couples is calculated by the percentage ratio between your price, and your competitor’s price.
The average value of price relations (between you and your competitor), for each product, is divided on the quantity (the sum of all values is divided by the number of competitors).
The result is the average value considering the prices of all competitors, which have the in stock product intersections with you at the moment.
Count average on average. This means that average values of each product are added up and divided by their number (see the preceding paragraph). That is how the middle market value of Price Index is generated.

The calculation makes a minimum price on the market, as well as the maximum and intermediate values.

For example, in the diagram above, we clearly see that for a long time, the store has been sitting on the most expensive market price.

How and which of my products are included in the calculation of Price Index?

All in-stock products at your and your competitor's stores at the moment, are calculated. The products should be available in at least at one of your competitor's stores. The products monitored by Competera Price Intelligence are also included.

Consequently, the more products that are monitored, the broader picture of the price positioning of your shop you see.

What if I need to know the positioning, not of every monitored product, but only by the KVI-positions, or just by certain product groups?

Competera is able to calculate the Price Index for every segment of monitored products. You can use two options for this analysis: tags and standard filters.

If you make a regular analysis of a certain segment (for example of certain products, product categories, and a few competitors), you need to use the tags. These are the boxes, which contain the saved segment of selected data.

The data set for analysis can contain an infinite number of variations that you require. For example, you can estimate how much your online store “costs” in the category of large appliances, by KVI-positions regarding the market in the requested period of time. To do this, you need to create a tag with the corresponding segment.

Applying a filter to the requested tag, you can get a PIx calculation, on any brand in any price range, on any competitor, in all categories.

How to create a customized tag for 10 seconds

with a set of elements (products, categories, brands, competitors and etc.) to make an analysis within a campaign of Competera Price Intelligence:

Standard filter is a type of selection of segments with the common, predefined (not customized), character of data grouping.

In this case, you can use the standard filters by selecting the competitors in the segment, product category, brand or a combination of ready-tag (KVI-positions and etc.) within Competera Price Index.

If you have questions, or you want a consultation, about the variants of tags you need, or about the settings and usage of filters, please contact your Customer Success Manager from the Competera campaign and you will get assistance.

When and why do I need Price Index?

To create retrospective reports, in order to be certain every day “on day N the sales were decreased in our online store. What is the reason for that?”*
*Please note that in order to maximize data enrichment and analysis, you can upload the information about sales, attendance and other parameters that will be superimposed on the data for the calculation PIx, and give a complete picture of the effectiveness and of KPIs performance.
To build a correlation between data sets, and identify patterns that affect sales and profits;
To create reports about price positioning of the online store, categories, brands, and products in stock referred to the market and certain competitors.

On the diagram, you can see the fluctuation in the context of several competitors (competitors are listed and displayed at the bottom below the graph) by certain days and in the chosen category.

What it means: most likely, these days one of the players changed their prices and the market followed him. A more detailed analysis within Competera Price Intelligence, with the help of retrospective reports, shows that the repricing was provided by our client. Following him, competitors changed their prices.

When don’t retailers need Price Index?

In the event the market doesn’t affect you;
In case of your pricing being based on an assortment, stock turnover and other parameters. Also, when work takes place in product verticals, where the market doesn’t affect you, or the influence is minimal.

What do I need to do if I’ve just started working with Competera and want to connect Price Index?

You need to go through the standard procedure of connecting Price Intelligence. Please leave your request and note Price Index in the comments.

How to connect Price Index, if I am already a customer of Competera?

You need to contact your Customer Success Manager. Thereafter, the data with the calculation of Price Index will appear at your campaign within three business days.

All the data for calculation will be transferred from data on the current monitoring of products.

Before you start working with the report, we recommend listening to the demo on the usage of Price Index, the main insights, and possibilities of solutions.

What are the options for data enrichment in the calculation of Price Index?

There is an infinite set of options for customization and enrichment. These all depend on the information that you need. In order to understand the full picture of your own market conditions, in comparison to your competitors.

For example, you can add data on sales, website traffic, MAP, etc...

To add new info, you need to contact your Customer Success Manager, who will enter any additional information (provided by you) to the Price Index report.

Which format is available
to export data?

CSV, Excel, JSON, JPG

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