Price Intelligence Tools: Essential Capabilities to Maximize Profitability
In today's highly competitive business environment, staying ahead is crucial for success. The hardest part can often be figuring out your competitors' actions and why.
The price intelligence tools listed in the article attempt to cut through the noise by demonstrating where your competitors are setting prices and what factors their pricing decisions take into account. Armed with this data, you can make informed decisions about how you can use pricing to best position or brand your company or product. Read on for more information!
Do you want to find out how these price intelligence tools work? The following blog post will give you a closer look at the essential capabilities of these products, with tips on how competitor price monitoring can help you stay one step ahead of the competition.
The article begins with a complete description of each tool and its strengths and then identifies common problems associated with some price intelligence tools.
Why your business needs price intelligence tools?
The first questions are why you need price intelligence tools and how they can help your business.
Many companies use price intelligence tools because they feel it's better to do so than to ignore the issue. But does it make sense? Let's find out for starters.
The word intelligence has a lot to do with collecting and analyzing data. There are many different kinds of intelligence. For example, knowing which price is optimal for a particular product in the current market conditions can be considered price intelligence.
Additionally, it may be helpful to know what the competitors are doing and why they are doing it. Inventing their marketing strategy or introducing your pricing strategy would be fine if you know what your rivals were doing. You could observe how they position their product or service and communicate with the customers.
The Essential features Price Intelligence Tools Must have:
1. Accurate Product Matching:
Price Intelligence software matches your product or service with the competitors' products. For example, there can be a case when competitors offer more items than yours, and they may have more SKUs in total.
If this is your case, the price intelligence tool could only identify some of your products in the catalogs. If an item is not found, the program could be inconsistent and, therefore, less effective. It is vital to choose software that will correctly match every item you sell, no matter how many variants your competition offers.
2. Competitive Pricing Data:
The importance of competitive pricing data cannot be overstated. If you want to know what the competitor is doing, you need to know his price points. The software should show the average, minimum, and maximum prices for each product or service searched.
3. Product and Service Attributes:
The software must also examine all the attributes of your products and their competitors' offerings. For example, suppose a search uncovered a competitor's product that was more expensive than yours. In that case, the program should compare all relevant attributes such as weight, size, color, etc. Using this data could give you a competitive advantage since it will allow you to customize your offering based on these additional attributes.
4. Competitor Web Traffic:
You need to know the locations of your competitors' websites, not just their product offerings. Checking the location of a competitor's store within a given geographical area would be ideal. The website needs to provide accurate information regarding whether or not it is optimized for mobile users or whether it is easy for shoppers to find nearby stores that stock the product you are trying to sell. You can also use this information to tailor your website so users can easily find what they want without wasting time on irrelevant links.
5. Product Images:
A common problem with price intelligence tools is that they may exclude images from their search criteria. To avoid this problem, consider buying software that includes photos in its results. You should always make sure the tool you choose has product images. The software should allow you to scale and compare the pictures to see the differences quickly and easily.
6. Pricing History:
It is not enough to know what the competitors are doing now. If the price of your product is below the standard market price, it could be because your rivals are trying to clear out old inventory or simply because they want to steal your customers. Some price intelligence tools include historical data, so buy software lets you view each product's historical pricing data.
7. Comparison Charts:
The best price intelligence tools will allow you to analyze product or service comparisons. If you want to see the differences between your products and a competitor's, it should be easy to do so with a comparison chart. You should be able to compare as many of your products with one competitor's offering or as they can produce simultaneously. This information can help you create and tailor new marketing campaigns to fit customer needs and preferences.
8. Trend Analysis:
A good price intelligence tool should also support trend analysis. You can use this function to determine whether your prices are trending up, down, or staying the same as your competitors. It will help you better understand why your prices have changed.
9. Mobile Device Support:
Marketers today are always on the go, so you must ensure any price intelligence tool you use is compatible with your mobile devices, such as smartphones and tablets. It will ensure that you can access this information from anywhere at any time. Further, it is helpful if the software allows you to take action based on the data it provides. For example, based on the information, you can place a better price on your product.
10. Easy to Use:
Price intelligence tools are meant to help you improve your business, so they should be easy to use. The software you choose should not require you to spend hours learning how to use it. You shouldn't have to hire an IT expert or a lot of extra help just because the program is complicated. The tool should also provide a basic tutorial and introductory videos that allow you to get up and running immediately.
What Can Price Intelligence Tools Do?
Price intelligence tools can give you the upper hand when promoting your products on Amazon and closing more sales with fewer customer complaints. You can also use these tools to make your business more efficient and reduce the expenses associated with running it.
1. Price drops:
Price intelligence tools can help you spot price drops quickly and take advantage of them before your competitors. You can also target customers most likely to be interested in a price drop, such as those who expressed interest in a product you are currently trying to sell or those who expressed interest in a product from one of your competitors but did not purchase it.
2. Price switches:
Price intelligence tools can help you spot price switches in time, so you can take advantage of a better price while your competitors are at a disadvantage. These tools can also help you spot price switches after placing your order. You will have the opportunity to immediately change your order and take advantage of the lower price.
3. Price Analysis:
Price intelligence tools can help you analyze pricing on Amazon by looking at competitor data in the same area and on different Amazon sites. This information can focus on more specific geographic regions that offer competitive pricing data for certain items you want to sell. It can also focus on a particular product or brand from each competitor to better understand how they advertise their products.
4. Pricing Strategy:
Price intelligence tools can help you optimize your pricing strategy by finding the lowest price for your product during peak shopping times. You can also learn how often your competitors change prices, what times of the day they do so, and what prices they set for each product at a given time.
Price intelligence tools are a useful way to gain exclusive access to competitive information that would otherwise be unavailable. These tools are meant to help you improve your business and make it easier for consumers to buy products from you.