Competitive monitoring

How to monitor your competition and become a retail winner

One of the key factors which influences the customers is price, as PWC research shows. In the eCommerce highly competitive environment it’s crucial to set and fine-tune the pricing strategy to outperform the competitors. Here are the main points to build your competitive monitoring strategy.

price tracking

Point 1. Detect the rivals influencing your sales
Don’t track the data on all of the competitive companies you have. It requires many efforts and is senseless, as long as price tracking may bring profits even considering the information on several rivals.
Find the most price-sensitive items and see where they are echoing with the products in other online stores.
When those products are identified, you will use your competitive monitoring software to compare the prices and availability of them at yours and your competitors’ store.

Competitor data
— the results

Point 2. Visualization
It’s much easier to see who’s influencing your sales and where you may improve the pricing strategy if you have a visual chart with the categories, leading brands and the whole inventory price positioning on a clear visual chart.
You will be able to clarify the market situation and your positioning and to wisely optimize your prices.
Point 3. Higher prices and no profit loss
Having the visual embodiment of your price positioning, you can set higher prices, increase margins and keep your customers with you.
It’s possible with qualitative competitor data. For example, if you know that your competitor is out of stock today, or that his price is higher, don’t hesitate to raise your own price.
Ease the stock, attract more customers, increase margins while spending only 15 minutes on repricing with a set up price monitoring software.

Some tricks to improve
product assortment

Point 4. Price sensitivity
To become a retail winner, it’s not enough to acquire all competitor data, you also need to determine the items with the most sensitive prices regarding your competitors.
To do that, define the KVI’s. They play the central role in setting the pricing strategies. They help manage pricing decisions for particular items and to set up efficient price index.
Category strategy goals are directly impacting the KVI lists. To define the KVI’s in the modern way, use different sources, segment items in pricing groups, and renew the KVI lists as often as possible to stay on the wave.

Point 5. Save your time!
Category managers are daily optimizing prices and planning the product assortment. This processes should be automated to save time and help managers achieve their KPI’s. Our study shows, that Price Management tool saves up to 1 working hour per day which saves 30 working days per year.

Stay competitive

Keep an eye on your rivals’ data, reprice right products at the right time with Competera

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