Pricing Analytics Solutions: Boosting Profitability with Data in the Retail Industry

Despite recent advancements in technology and decision-support tools, companies in the retail industry are finding that the traditional approaches to devising pricing strategies are not keeping pace. Indeed, the new digital era stemming from pricing analytics and the explosion of omnichannel retailing has meaningfully changed the retail landscape and needs an overhaul of retailers’ pricing strategies and capabilities.

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Pricing is a crucial driver of growth and neglecting it can affect the profitability of retail businesses remarkably. So, retail companies need to understand and analyze the price point for maximizing profits. This is where pricing analytics can come to the rescue. Companies can get as close to their target as possible, provided they utilize pricing analytics solutions and devise best-suited pricing strategies for their business. In this article, our pricing analytics experts have highlighted a few ways to help retail companies boost profitability, optimize price and discounts, minimize price gaps and benchmark prices against competitor products with the help of pricing analytics solutions.

In a highly competitive retail market driven by digitally empowered customers with paper-thin brand loyalty, and agile online competitors, pricing analytics is the key to stay ahead of the curve.

Tips to Boost Profitability by Leveraging Pricing Analytics Solutions

Analyze and track your competitor’s pricing strategies

Pricing analytics solutions can help companies in the retail industry to monitor and track competitor pricing in real-time. By leveraging pricing analytics solutions, retail players can also make changes to their pricing strategies by comparing it with that of the competitor’s strategy. This can, further, help them to improve customer retention rate and customer responsiveness. With the help of pricing analytics models, retail companies can proactively respond and immediate responses to the competitors’ marketing strategies.

Our analytics experts employ effective price analysis models to identify price triggers and factors affecting the price of your offerings. Get in touch with an analytics expert to know more.

Track price triggering points

With the increasing competition in the retail environment, today it has become crucial for businesses to track the price triggering points and factors affecting the demand of their products and services. Pricing analytics helps retail companies in developing capabilities to understand the factors triggering the price of a product or service and then tweak their pricing strategies accordingly. The analytics experts at Quantzig believe that the best way to track price triggers is by tracking the purchasing paths of the customers which provide clues to what changes in price need to be made.

To help businesses sustain themselves in a highly competitive marketplace, we track and monitor competitor pricing in real-time through our customized pricing analytics dashboards. Request a FREE demo below to gain better insights.

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Understand price elasticity

Pricing analytics solutions can help companies in the retail industry to analyze past transactions and perform price segmentation to identify factors that influence price elasticity. Doing so can help retail companies to calculate the price elasticity for all price segments and select the one that maximizes profit and revenue. Consequently, companies can establish discounting strategies to remain competitive and improve their regional go-to-market strategies as well.

Develop robust pricing modeling capabilities

Disparate data sources, as well as market and category contexts, challenge a company’s analytical maturity. A one-size-fits-all cannot produce analytical rigor. Therefore, retail companies should leverage statistically validated pricing models to gain the desired business outcome. Pricing models can help retail companies to determine price elasticity, cross-price elasticity, and pricing corridors that can influence sales, direct marketing promotions, and other deals.

Wonder how insights derived from pricing analytics solutions can help you make informed decisions? Request for more information now!

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Pricing Analytics Unearthed New Opportunities to Capture Unrealized Profits for an Automotive Company

The client is an automotive manufacturer with business units spread across North America. They were looking at developing a data-driven pricing strategy to identify new pricing opportunities to drive growth. This success story highlights how the implementation of a data-driven, competitive pricing strategy helped an automotive company to outperform its peers.

The Business Challenge

There is no denying to the fact that the future of the automotive industry is currently at crossroads. In a rapidly growing automotive landscape, the lack of the right tools and expertise in setting the right price may bring in new challenges for players. It’s also crucial to note that businesses must have strong analytics capabilities to develop meaningful insights from their datasets and set the right price for their offerings. Our portfolio of pricing analytics solutions is backed by best-in-class pricing analytics models that aim to address the specific needs of businesses to drive bottom-line results.

Our pricing analytics experts can not only help you leverage data to understand the buying patterns of your customers but can also help you integrate this knowledge to meet your pricing needs.

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Since automotive companies face strong competition from international players it’s crucial for them to express the value of their offerings by setting the right price. The client, in this study primarily sold products through distributors and faced several challenges related to pricing, execution, and monitoring. A thorough analysis helped reveal that the client’s challenges were deeply rooted in their pricing strategy and poorly documented processes.

The lack of basic knowledge and pricing analytics expertise proved to be costly and the client soon realized the impact it would have on their organizational performance. Moreover, the growing competitive pressure from low-cost competitors, new entrants, and product commoditization along with the risk of falling into costly ad-hoc pricing habits prompted the client to develop a competitive pricing strategy.

Get in touch with a pricing analytics expert for more insights.

The Solution Offered and Value Delivered

To help the client identify the optimal price for their products we focused on developing a competitive pricing strategy that aimed to differentiate the client’s offerings. Our experts also conducted a detailed competitor pricing analysis to identify and analyze the patterns in pricing strategies adopted by their competitors. This helped the automotive client to identify over $2M in new pricing opportunities. The competitive pricing strategy also helped them analyze how price fluctuations impacted the overall profitability of the organization.

Quantzig’s pricing analytics solutions also empowered the client to:
• Improve the efficiency and consistency of their pricing policies
• Automate pricing dataflow and develop KPI dashboards using advanced pricing analytics
• Quantify product demand based on pricing

Quantzig’s pricing analytics solutions leverage advanced pricing analytics models and micro-segmentation techniques to help businesses identify new opportunities for improving profits.

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What is Pricing Analytics?

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Competitive Benchmarking Analysis: How Does It Help You Stay Ahead of the Curve?

What is Competitive Benchmarking?

Competitive benchmarking is the approach that compares the products, services, methods and processes of direct competitors by using a number of metrics. Competitive benchmarking analysis is conducted to measure the performance of a company at different levels and keep it competitive. Competitor analysis done through competitive benchmarking helps in examining the strategy of competitors and compare it with own strategy. A competitive benchmarking analysis program enables a company to compare their own products, services, business operations and customer experience with that of its competitors. Furthermore, it helps in understanding the services that competitors offer their customers and their approach.

Competitive benchmarking analysis can help you understand your current competitive position by offering in-depth insights into the competitive landscape. Wondering how? Request a FREE demo now.

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Benefits of Competitive Benchmarking Analysis

Benefit #1: Assists in prioritizing benchmarked performance gaps

Competitive benchmarking analysis data helps companies to target specific areas for improvement. Companies can utilize such data to identify the areas where results can be obtained quickly or such areas that can yield the biggest demonstrable benchmark impact for the business. This further helps in performance gaps to boost business outcomes.

Benefit #2: Helps in implementing best practices

After prioritizing the performance gap, companies can utilize competitive benchmarking analysis data to analyze the best practices in the industry and the practices followed by their competitors. Implementing best practices can help companies become more competitive, boost sales, develop new markets, improve workforce skills, reduce waste, and improve quality. Also, it can help in responding quickly to innovations in the sector.

Do you know how to stay ahead of the curve? Competitive benchmarking analysis is the key. Request a FREE proposal to gain better insights.

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Benefit #3: Helps in gaining a rational perspective on business process performance

Best practices identified through a competitive benchmarking analysis project helps in avoiding any assumptions. This helps in gaining a perspective in mind to avoid focusing on fallacious practices which can result in failure of the business process. Additionally, it helps to save money and time.

Competitive benchmarking analysis can help you evaluate your brands’ performance significantly. Get in touch with our experts to know how.

Benefit #4: Improves the performance of employees by fostering a competitive culture

Competitive benchmarking analysis can help companies to set benchmarks in several areas and develop a competitive spirit in employees to improve their performance. It also helps in focusing on personal improvement and understanding policies of the organization. Furthermore, competitive benchmarking analysis ensures the attainment of employee satisfaction, a competitive productivity-focused culture, and standardization of organizational practices.

Benefit #5: Measures progress and impact of process changes on the bottom line

With the implementation of best practices derived by competitive benchmark analysis, companies can develop dashboards to gauge the impact of the operational changes accurately. Also, it helps in defining KPIs to measure the performance of business operations at every individual level. It helps in incorporating change to improve the bottom line results by gauging the past performance, current performance, and target performance.

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Weekly Round-Up: A Storyboard on the Benefits of Pricing Strategies and Infrastructure

LONDON: Quantzig, a leading pricing analytics services provider, has announced the release of their new storyboard on pricing strategies and infrastructure. These stories explain how robust pricing strategies and rigid pricing infrastructure can help companies to manage profitability and brand image.

Today businesses are facing critical challenges like monitoring competitors pricing strategies in real-time, determining fluctuations in demand and identifying pricing triggers while trying to sustain their profitability. Solid pricing strategies and infrastructure can help companies to optimize pricing, promotion and discounting strategies. Also, it can guide companies in identifying new sales opportunities, increase profit margins and drive conversions.

Quantzig’s analytics solutions have helped leading companies to make data-driven decisions and boost profitability. Below, we have summarized some of Quantzig’s free resources for this week and have also highlighted ways in which robust pricing strategies and infrastructure has helped businesses to excel in the competitive marketplace.

Are you finding it difficult to understand how pricing analytics solutions can help your business to reduce price gaps, optimize prices and discounts, devise effective pricing strategies and benchmark prices against the products of your competitors? Get in touch with us right now!

#1. Why is pricing analytics important for your business? Pricing is a crucial component when it comes to product positioning and branding. Don’t you agree? This is the reason why robust pricing strategies have become the need of the hour for businesses today to stay competitive and ahead of the curve. Pricing analytics solutions can help companies make careful decisions on the margins to be reserved on particular products in relation to the competition. Also, pricing analytics empowers the companies to avoid costly mistakes by running advanced scenario modeling and identifies the potential impact of the change in price on the overall profitability and demand.

Developing a data driven pricing analytics strategy from Quantzig

Are you wondering how to devise effective pricing strategies for your business? Request a free proposal to check out our portfolio of pricing analytics solutions.

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#2. How can pricing automation help you achieve pricing mastery? Is the science of pricing strategies underdeveloped for your business? If yes, then you must give a thought to optimize your pricing strategies and this is where pricing automation can come to rescue. Pricing automation acts as a silver bullet to push your organization from the initial level of the pricing maturity scale to the level where your organization will be able to achieve pricing mastery.

How to Automate Pricing Infrastructure from Quantzig

Analyzing the feasibility of pricing analytics for any business is a daunting task. Our analytics solutions provide best-in-class frameworks for multi-dimensional data aggregation and price points optimization. Request a free demo for more insights.

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#3. What are the benefits of next-generation price optimization? Are you wondering what is new era price optimization? New era price optimization covers entire stages of a product’s lifecycle in an integrated way right from the base price, promotions, TPR to markdowns. This helps in avoiding conflicts in pricing and forecasting demand accurately to maximize ROI. Next generation price optimization has huge benefits like ease of use, reveals the reasoning behind price recommendation and much more which helps in improving overall pricing strategies of the business.

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Developing a Data-Driven Pricing Analytics Strategy

Developing a data-driven pricing analytics strategy

Pricing Analytics: Reasons Why it’ll Help You Crush the Competition in 2019

In 2019 one of the key questions for business leaders is how can the pricing lever be used to boost their business growth ambitions? As we are aware even a 1% improvement in price can impact a company’s bottom and shoot profitability significantly. But, the most daunting task is to make sense of dynamic pricing data and unstructured products and services. Most businesses fail to utilize the benefits of pricing analytics and pricing data and tend to take a back seat when it comes to determining the right strategies to enhance their product pricing.

Pricing is the most important driver of growth and neglecting it can affect the profitability of business remarkably. But, companies need to understand what the perfect price point for profit maximization is. And this is where pricing analytics comes into the picture. Companies can get as close to their target as possible, provided they utilize pricing analytics solution to its best and devise best-suited pricing strategies for their business.

At Quantzig, we understand the impact that pricing analytics can have on your business. And to help companies excel in the competitive landscape, our team of experts has provided a detailed guide on the importance of pricing analytics. This can assist businesses to optimize prices and discounts, minimize price gaps, benchmark prices against competitor products and finally can boost their ROI. (more…)

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Unleashing the Power of Pricing Analytics in Retail | A Customer Success Story

About the Client

A major brand in the home furnishings retail sector in Germany.

The Business Challenge

An uncertain economic environment, the rise in new product launches, technological disruptions, and a highly informed and demanding customer base are just a few among the many challenges faced by retailers today. To thrive and stay prepared for the future retailers should consider tapping into the vast datasets to answer crunchy questions that are essential to improve performance in these demanding times. Also, these challenges are directly linked to pricing analytics and the strategies adopted by businesses, which in the real world is a powerful lever that improves a company’s top-line and bottom-line performance. With the proliferation of shopping channels and a decline in customer spending, effective pricing strategies have become a target source for retailers looking to grow organically. While retail industry players realize the critical importance of pricing analytics to drive profitability, identifying the pricing strategies that drive growth still seem to be a daunting task.

The client, a leading player in the German retail industry found itself struggling to improve profitability and demand in a highly complex environment. Hence the retailer approached Quantzig to leverage its pricing analytics expertise to test their in-retail market price elasticity. They wanted to evaluate their pricing strategies to determine the extent to which it had been a drag on their performance. Like the client, many retail companies have reached a point where they realize the importance of data in making decisions, but many haven’t yet stepped up to the challenge of managing data needed to get the pricing right. However, until you do step up, your business may not be able to capitalize on the full potential of pricing analytics. (more…)