As you know, consumers are more sensitive than ever to price variations. Therefore, it is essential to adopt the right pricing strategy to stay ahead in the market. To do this, you require quality market data and you need to know how to extract the right information. Price Intelligence, also known as competitive pricing intelligence, allows you to monitor retail price variations and consumer behaviour in the market, as well as adopting a more dynamic pricing strategy. How exactly does this practice work, and what are the key issues for your business?
Price Intelligence: add value to price data in 4 steps
Price Intelligence, what is it?
Price Intelligence is a competitive intelligence methodology. It is based on data mining and an in-depth analysis of price data. The information collected offers a clear view of trends, from which a player can build a competitive and dynamic pricing strategy.
In order to analyse the information collected and track market developments, you need to follow several essential steps:
- Data Collection
- Cleaning and matching
- Data Preparation
- Data Visualisation
- Reporting and analytics
This process goes from the data collection to its analysis, and includes its preparation. At stake: clean, consistent and usable data. It is only once these different phases have been validated that concrete measures can be implemented to improve performance.
What are the business challenges?
As you now know, Price Intelligence allows a player to (re)position its prices to boost competitiveness and improve his performance. Overall, the whole company benefits from advantages of this method.
By refining your pricing strategy
, Price Intelligence has a direct impact on revenue and is a major competitive asset.
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