4 Best Tools for Retail Price Optimization
by Arina Smith Retail 20 February 2019
In order to reach the zenith of success, you need to find solutions that best optimize retail methods and practices. The ideal price can help you get positive and significant ROI immediately. However, it needs to be kept in mind that price optimization is quite a difficult thing. To begin with, organizations need to store and process significant volumes of historical data. The same can be collected, stored, and processed in various ways, and through various tools. Many times pricing managers are continuously coordinating their activities by collecting information either manually or in an automated fashion.
The thing is, retailers, pay attention to expert-based pricing, thus neglecting a lot of data. That is not wrong since they are at a crossroads between the KPI and the strive for setting optimal prices. However, since this never stops, managers do not have enough time for thoroughly analyzing their guesswork. Therefore, there is not much to correct or improve. A bottleneck is then made which creates an intense cycle of failures and constant mistakes. Even though the entire process appears quite strange, it still takes a while to figure out this imperfect process, therefore when new staff is needed, retailers lose what is most important to the- time.
Keep reading to learn about the four best pricing tools that can help you win market share as easily as possible.
Revionics believes that tech-savviness is necessary as retail is in a vicious environment, so they help meet demands via their automated dynamic pricing, promotions, and markdown tools in addition to competitive insights and advanced analytics. Specializing in all retail segments, they strive to break the cycle of poor promotions by figuring out how everything works.
This pricing software offers Artificial Intelligence and Machine Learning enabled recommendations on prices, which allows both physical stores as well as digital based online retailers to figure out the most optimal prices. This task is completed by analyzing several patterns through information in user behavior, consumer feedback, seasonal variations, and competitor activity.
If processes are followed in the right manner, we find that revenue from the customer front increases between the ranges of 5% to 15% via 300-500% ROI. However, such numbers depend on several factors like efficiency, indicators of business, and the swiftness with which decisions are taken.
The AI platform offers a set of tools for price optimization as well as provides help, locating, and narrowing down on appropriate opportunities through detection in various sectors. PROS Control supplies spreadsheets along with manual inputs through just an individual tool, which allows companies to achieve across the spectrum and synchronized price supervision as well as implement a winning pricing strategy. The concentration and focus lie in industries such as aviation and travel through their repricing solution.
Zilliant is famous for its IQ engines, which implement price optimization, AI algorithms, and predictive analytics in order to analyze the true commercial prospects of customers. Based on that, they can create a strategy that will bring forward profit. It is especially helpful in industrial manufacturing, industrial distribution, food service distribution, and building products manufacturing industries. In addition, Cart IQTM analyses and calculates client data, which provides help while also makes sure that the digital or ecommerce stage is in order.
Every company strives to meet today’s challenges in the busy market by offering comprehensive solutions to clients’ problems which is why it’s important to be both straightforward and direct. Automated pricing management software based on machine learning plays a really big role by providing trustworthy information across the board, a lot of time and cost savings, a strong customized growth strategy, consumer behavior forecasts, and simple to understand and use management techniques.
In addition, digital price optimization has also garnered a position as a supply chain tool.