“Retailers that fail to implement a strategic multi-channel pricing strategy, including proactive competitive pricing and multichannel consistency, will continue to lose market share to nimble competitors.” This is a quote from Bob Hetu, Research Director with the Gartner Retail Industry Services. Hetu wrote an article about one of the major factors contributing to successful retail pricing strategies – consistent pricing. Hetu references a unique retail study that suggests that 81% of retail respondents are planning to implement consistent pricing in the next 12 to 24 months.
What is consistent pricing and is it a plausible strategy for retailers? If so, how? Consistent pricing is exactly what it sounds like – presenting the same product offering to the same customer across all channels. Consistent pricing is most accurately managed through the investment of a competitive price intelligence vendor. A CPI vendor, like 360pi, can track and collect all the relevant and time-sensitive pricing information a retailer needs in order to make rational and dynamic pricing decisions. “The most effective retailers report they are 10 times more likely to use a centralized and/or automated method to manage competitive pricing across channels… this appears to be related to their ability to provide strategically competitive and consistent pricing.”
An article by Teradata, summarizing some of the top trends in retail for 2014, highlights two major movements that are quickly advancing on the retail world. Looping back to cross-channel consistency, it’s important to realize thatonline and in-store are no longer the lone methods of purchasing. “In 2013, mobile shopping accounted for 17% of Cyber Monday shopping, a 55% increase over last year, according to IBM.” Although mobile only accounts for a fairly minimal percentage of U.S. retail sales, they are slowly shifting towards more digitally advanced markets. The UK for example, estimates 24% of retail e-commerce sales in 2014, with an anticipated rise to 35% in 2017. Retailers need to shift their focus to cross-channel consistency if they want to keep customers shopping at their stores.
It’s no surprise to hear that the number of analytics investments are growing as the buzz of big data rises. Gartner forecasts that big data will drive $34 billion of IT spending in 2014. However, providing some context to this statistic, many retailers are ‘slow to adopt data-enabled insights and analytics best practices.’ Become a retail innovator, not a laggard. Did you know that 360pi can get a retailer up and running within two weeks?
Still not convinced on the ROI of a price intelligence vendor? Register for our upcoming webinar, Retail’s 2013 Holiday Winners and Losers, and see what 360pi’s holiday data revealed. Learn how various pricing strategies resonated with consumers and which, ultimately, led to wins and losses among major online and multi-channel retailers.