Price Comparison Software for Retail
Regardless of the buying channel they use, from 50% to 70% of consumers prefer to check and compare prices online before making purchases. As a retailer, you can use this behavior to your advantage by using high-quality price comparison tools adapt pricing strategy, ensuring significantly increased revenue and higher sales in the process.
Not all software is the same
Choosing the right price comparison tool is easier said than done. Several price checking software tools exist on the market, and from a surface-level point of view, they all tend to offer the same product for your company. However, key differences exist between the price comparison software providers you may find. This article will help you identify important factors that can make the difference between an adequate price comparison tool and an excellent one, so that you may select the best software according to your company’s needs and goals.
Choosing the right price comparison tool
The most important aspect of choosing the right price comparison software comes down to the seemingly minor aspects of how the tool being offered works. They are far more important than it may seem at first, and also may be difficult to identify at a glance. When you are taking a look at the software being presented to you, take careful consideration into the following details:
Check the data. The data collected and analyzed by any price comparison tool will be the basis of your pricing strategy. It is one of the most important factors that can make or break a good price comparison software. Knowing this, take the time to find out how accurate the data offered by this tool is. A data rate of 90% may sound great at first, but keep in mind this can translate to you possibly comparing thousands of products incorrectly as a result.
Also try to find out how often this data is checked for accuracy, and when it is delivered to you. Many eCommerce retailers utilize dynamic pricing, meaning they change their prices up to several times per day. Your software provider may be giving you very accurate data that was collected at noon each day, but if you’re comparing and changing your own prices at 3pm, this data may already be out-of-date and therefore much less useful to you for price comparison. Ideally, as a retailer you should be able to request your data at the exact time that you need it.
Read through the SLA. Your service level agreement is vital in understanding exactly what this price comparison tool can guarantee you in terms of quality, accuracy, delivery, and customer support. Ask yourself the following questions:
- What is the minimum/maximum accuracy rate this company can promise me in their SLA?
- Does the SLA state that the data provided to me can be customized according to my needs? Can you change what competitors you are comparing prices with when you need to, or are they giving you large, general data-dumps of information on companies you do not need to be paying for?
- Do they offer a pay-per-use model so you can avoid unnecessary costs? How accessible is their customer support service?
All of these questions are vital in understanding not only the quality of the price comparison tool in general, but also the dedication the provider has to your company and their ability to customize their product so you can avoid spending extra money on services you do not need. User-friendliness. The main objective of a price comparison tool in regards to your pricing strategy is to save you time and money. If the platform the software provider offers you is difficult and time-consuming to use, this should be a huge red flag for you that it may not be worth its cost.
Profitability. At the end of the day, your price comparison software exists to save you time and money. If the software isn’t easily integratable into your current pricing strategy, you could end up investing far more funds into using the software than what it’s worth. Typically, you should be able to try some sort of demo or trial of the software, which can help you determine how profitable it will be for your company, and whether or not it is worth the investment.
Choose your software wisely
If you want to remain competitive in the market and ensure that you are always providing the best prices for your products, a price comparison tool can help you do so whilst maximizing your sales and increasing profit in the process. Not all price comparison software is the same, though, so keep in mind these important factors that can really make or break the usefulness and profitability of any price comparison tool. Hopefully, with this knowledge, you can select the best tool according to your company’s objectives.