“Price transparency and the price sensitive consumer is not a fad and it’s not going away.” That was RSR Analyst, Nikki Baird’s, response to a question we asked her about our upcoming webinar ‘5 Ways to Win the Price Sensitive Consumer’. According to RSR Research, consumer price sensitivity was the #1 strategic pricing challenge for retailers in 2012.
Showrooming and comparison shopping are now commonplace amongst consumers, but are retailers’ actions to win the price sensitive consumer actually encouraging deal hunting and price comparison behavior?
As a recent article from the Associated Press highlights, many shoppers are no longer willing to pay regular prices and refuse to buy anything unless it’s on sale. For these bargain hunters, part of the enjoyment of shopping is the thrill of getting a good deal. With retailers becoming increasingly promotion-driven, especially during the economic downturn, consumers have become addicted to these sale prices. As Ms. Baird suggests, retailers are simply adding fuel to the fire.
According to Nikki Baird, retailers are reacting to this price sensitive consumer by:
• Sending more price changes than ever before to the store
• Becoming more promotional
• Doing less relevant or targeted promotions, more often
And these behaviors serve to encourage and heighten price sensitivity. Therefore, Baird suggests, retailers need to become smarter about price changes by making fewer, smarter pricing decisions – analyzing all the important inputs before setting their price. One of the most critical inputs is competitive price intelligence. This provides retailers with complete visibility into what the market will bear from a pricing point of view. Once they have this visibility, there are several other steps they need to take to avoid a race to the bottom on price, and this is exactly what Ms. Baird will discuss in the upcoming webinar.
The webinar, scheduled for September 27, will feature Nikki Baird, Drew Williams (VP Marketing at 360pi) and Tony Tomanek, a pricing strategist from Best Buy, and focuses on giving retailers new pricing strategies to win price sensitive consumers. Mr. Tomanek will be sharing his experiences in dealing with the price sensitive consumer and, as Ms. Baird puts it, Best Buy “has been on the front line of price sensitivity for so long, and they have the scars to prove it. If anyone is under pressure to respond to the price sensitive consumer, it is Best Buy,”.
To find out how you can stop encouraging price sensitivity and start changing the game, register for the ‘5 Ways To Win the Price Sensitive Consumer’ webinar.