MANAGEMENT NEED TO IMPLEMENT KNOWLEDGE.
Benefits of pricing should be clear or at least somewhat understandable, if you are a leader. Although pricing is a complex issue, it will yield strong benefits for overall profitability of the company, if you do it right. You may have heard the term ”price optimization” in some discussions. In eCommerce it is not a hype word, but rather a reality. So what does price optimization include and what are the benefits of well implemented price optimization?
Make price optimization your secret weapon
In it simplest terms price optimization is the use of mathematical analysis to see how your customers will react to different prices and make the best possible outcome for your profitability. The analytics are naturally depended on the quality and quantity of the data.
Consumers are taking more and more control on what they buy. There are a few main factors that have increased the power of consumers. Firstly, the growth of mobile shopping means power shifts to consumers. Secondly, faster logistics are a norm today – 1 hour delivery is reality already. On top of this big commerce players fuel price competition and make retailer loyalty a distant memory.
So, wouldn’t it be great if instead of guess the right price for your buyers, you could optimize the prices according to their purchase behavior? Price optimization turns your pricing into a meaningful communication and pulls people towards your company by offering them what they want with a right price.
It’s no miracle that we believe in market based pricing. Ecommerce, it it’s purest form, is volatile. With Sniffie pricing suite your team is able to take advantage on the data that is needed to optimize pricing based on all critical factors.