RETAIL PRICE OPTIMIZATION – Backbone of a business!
The e-commerce industry is one of the fastest-growing and developing industries. Retail businesses have paced up and need smart solutions for smart customers. Price optimization solution has become the need of the hour in the era of technological growth.
Suppose, you need a shirt and search for it online, from the list of suggested shirts, the one you selected matches your budget and you get a discount offer too. Icing on the cake! Right?
Role of price optimization
Now, let us understand the strategy behind it. The price displayed after the discount offer is that price which is already increased but after optimization, you are still paying the exact amount for that shirt. In short, you don’t get any discount but end up buying your interested product and retailers make a profit out of it. This is the role of price optimization in retailing.
The products are sold as per the buyer’s interest.
How does a price optimization plan help retailers?
Optimization solutions use data-driven technologies and target potential customers. Artificial intelligence track activities of the customer’s data and help retailers to manage the optimum prices of products. Your involvement in searching the type of product, the price category, and the offers that grab your attention, such activities are monitored through the intelligence software and the retailers manage the plan to get command over the business.
The advanced optimization solution is a great way to lure your customers and retail high-quality products. Quality attracts customers.
Types of price optimization
- Single Product Pricing
Single product pricing is applied to every individual product in the market that figures out independent demand curves. The curve demonstrates the idea of price utilization in generating the required demands for the selling of products.
The price optimization needs effective management which helps the businesses to set profit-maximizing price.
- Multi-product portfolio pricing
A business deals in retailing of more than one product and for various related products, there is a requirement of a multi-product pricing strategy. It helps in amplifying the profit rates without affecting your customer base.
The multi-product portfolio ensures no major effect on the average pricing but makes minor changes on the related products to increase profitability.
- Reaction Pricing
For holding a leadership position in the business market, it is important to keep an eye on your analytics. Retail analytics help retailers to evaluate their value in the field. When you optimize the pricing of your products, your customers decide the consequence of your strategy. You get to understand the purchasing behavior of your customers. This is called reaction pricing.
- Strategic Pricing
In the long run, businesses need to reframe their pricing policies to match the playful perception and needs of their customers. The optimization software implements a strategic move by increasing or decreasing price value in each product without customers’ and competitors’ attention.
To help your retail business grow, Vistaar provides automated pricing software solutions and predicts strategic pricing for you to step ahead of your competitors.
