Competera continues the series about retail during the crisis. In this piece, we're publishing a video of our second webinar. Global turbulence forces more and more retailers to move online. At the same time, an average buyer also becomes more fastidious while making purchases. In this video, Competera Pricing Solution Architect Julia Beregovaya will walk you throughout the process of setting up an efficient price in online retail.
You will learn how to increase the shopping basket of your buyer and find how to react proactively to price changes for the entire range as well as your key-positions.
To be or not to be online is no longer a question
During one of our webinars, we conducted a small survey among retailers. All the surveyed participants understand the importance of online channels and are ready to invest in e-commerce. The difference is only in the amount of funds (most are only willing to spend only free funds) and the period for focusing on e-commerce business (someone's already developing this channel, someone's waiting for market stabilization). However, there is no clear leader on which key parameter you can measure success. Some think it may be the lowest price, while others believe it is an assortment or an additional service.
Defining focus in e-commerce
E-commerce efficiency defines a mix of four parameters. It is assortment, speed, price, and simplicity. To build a genuinely effective online channel for sales, you need to evaluate opportunities and prospects as well as outline priorities.
How to strengthen your positions
Validate your business using three key parameters. Firstly, find your true KVIs using specific features of working with targeted assortment, ranging products regarding price sensitivity (either absolute or competitive), or by RRP -MAP-based segmentation.
Secondly, find your actual competitors. As practice shows, only 3 out of 10 competitors selling the same product might have a real impact on you. Also, competitors might be different in every category or segment (more diverse competition compared to offline).
Thirdly, remember about your promo efficiency. Range products based on their sensitivity to promo. Promo history works under more tough and strict terms. Take into account the product basket size.
Don't forget to scale up
The key priority for this point is operational management aimed at optimizing resources and team time. Therefore, our answer is automation. Automated platform-based solutions will help you with optimization tasks and a regular review of short- and mid-term performance dynamics.
Develop your channels because the consumer journey is non-linear
Remember that 74% of consumers use more than one sales channel. More than 30% of consumers make purchases through more than three channels during a month. Thus, you should take into account these points:
Dvelop digital scenarios: catch the uncatchable, provide the brand-new shopping experience.
Online covers a certain demand and requires additional communication.
The cost of every consumer: control and optimization.
You will learn more about all the highlighted themes in the full webinar video. We also recommend you view other useful videos on our official YouTube channel.