Dynamic pricing is not about the lowest price, but the best price. As a partner of Profitero, predictive analytics specialist Blue Yonder uses its software to help retailers attain their strategic goals, such as higher sales volumes and lower inventories.
With Profitero’s competitor pricing data integrated into its solution, pricing decisions are now even more accurate.
If an online shop’s sales volumes are low despite receiving a lot of visitors, prices in general are not right. However, few online sellers today are able to recognise this just by looking at sales figures and then adapting the list price of items.
In brick-and-mortar retail, prices constantly change, and dynamic pricing has become a crucial instrument for attaining sales and revenue goals. A unified and complete pricing strategy is based on prices being optimised across the entire product line, taking into account all relevant factors.
Retailers need to first define the goal of price optimisation. Is the goal to increase the sales volume or the gross revenue on merchandise? Or does selling inventory make more sense?
Blue Yonder’s Predictive Analytics software can be flexibly adapted to goals that change with time. The software accurately measures price elasticities in a statistical manner, and in such a way that forecasted best prices really do have the desired effect.
To meet market needs created by the increasing importance of real-time price adjustments, Blue Yonder is continually adapting its software and refining its algorithm. In order to further refine pricing decisions, Blue Yonder’s data scientists continue to integrate current and ongoing measurements of price elasticities into its solution.
OTTO, the world’s second largest multichannel retailer, used the Blue Yonder solution in a pilot project. The solution provided the optimal price at each moment in the product lifecycle, resulting in OTTO increasing sales and revenue and improving its overall results.
By integrating competitor prices from Profitero, forecasting prices of branded and comparable products is further improved. Combined, Profitero and Blue Yonder provide retailers with the ability to optimally position themselves by using automated decisions.
In today’s ever-changing competitive landscape, retailers will increasingly have a hard time making the right decisions without the help of big data analytics.
To help retailers better understand how they can compete and win in today’s fast-moving world of dynamic pricing, don’t miss Profitero’s essential webinar featuring renowned Forrester analyst Sucharita Mulpuru.
Profitero.com: 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.
More than 40 global retailers, including Staples, Sam’s Club, Tesco, Waitrose and Ocado, rely on Profitero Price Intelligence to:
Benchmark competitor prices
Manage their prices and promotions
Attract price sensitive shoppers
Negotiate better with suppliers.
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.