A new report from KPMG predicts that pricing analytics will become a competitive standard for all retailers, both largae and small. With consumers benefiting from price competition and ever increasing transparency online, dynamic pricing and auction models are now set to even things up for retailers. Those who don’t get it right are unlikely to survive.
The KPMG report, Pricing: The Retail Response, states that many retailers are already sophisticated users of analytics to inform price and promotions decisions – taking the lead from the travel and entertainment industries who have successfully pioneered the concept of variable pricing for many years.
KPMG believes that in order to compete effectively against e-tailers “for whom data analytics is in their DNA” – citing Profitero data on Amazon’s 2.5 million price changes every day – pricing analytics is key. Those retailers who don’t develop such a capability ‘will remain in a cycle of discounts and promotions’.
According to Robert Browne, Partner and Pricing Specialist at KPMG, pricing analytics will become a competitive standard for all retailers, large and small and across all categories, embedded in key decision-making processes. Browne references B&Q and how they are already trialing an Amazon-style variable pricing model, with price changes based on day of the week, time of day, or popularity of the product line.
Browne concludes by stating that prices and promotions are critical drivers of profitability in retail, but they must always be aligned to the bottom line:
“Consumers have benefited enormously online – from new e-tail competitors to price transparency and collaborative consumption. Pricing analytics, dynamic pricing and auction models enabled by data and technology will even things up. Retailers that don’t get it right are unlikely to survive.”
Discover how Profitero delivers accurate and reliable competitor price intelligence to help retailers compete more effectively with e-tailers on price. Email us at email@example.com or visit www.profitero.com to find out how we can help you grow sales and margins.
Profitero.com: Online competitor price monitoring for retailers and brands
Profitero is the leading global provider of online competitor pricing data. We provide both bricks & mortar and online retailers with their competitors’ prices, promotions and full product assortment information. Profitero’s accurate and timely competitor intelligence enables our customers to make better informed and more profitable pricing decisions, helping them to increase sales as well as margins.
Our pricing data can be seamlessly integrated into price optimization solutions such as Blue Yonder, Revionics and IBM DemandTec, to deliver more accurate and effective price optimization. Profitero is also the preferred supplier of online competitor pricing data to Nielsen’s retail customers across more than 100 countries.