“When price-sensitive consumers spend, they want to feel like they are buying merchandise that is fairly priced, if not a significant bargain,” reveals Plunkett Research.
To entice these prudent shoppers into making a purchase, you need a combination of human intelligence and automation – a good market intelligence solution. Here are a few ways in which you can rely on a solution for data and redefine your marketing strategies to increase sales.
Pricing that is “Just Right”
If you want to get your pricing right, take a leaf out of the fairy tale, “Goldilocks and the Three Bears”. Goldilocks was a little girl who did not believe in extremes; for her, everything had to be “just right”. So she did not eat porridge that was too hot or too cold, and nor did she deign to sit on a chair that was too big or too small.
Just like Goldilocks, you need to ensure that your price is not so high that consumers turn to your competitors, and yet not so low that your products are viewed as low quality. Compare your prices against your defined competition using a tool-assisted market intelligence solution, and create a smart pricing strategy.
Compelling and Competitive
However, a smart strategy does not mean that you should slash prices or offer heavy discounts to attract price-conscious customers. Monitor your competitors daily to check if you are overpricing, but do not consider underpricing. The latter will not only eat into your profit margins but may also create a perception of low quality. Your pricing should be competitive and compelling enough to lead the competition, drive sales and generate better margins. For best results, use a solution that provides precise and up-to-date intelligence.
Timing is Everything
The volatility of the market is such that you will need to constantly be on the lookout for changes. Time is of the essence when it comes to revising your strategies, especially in case of promotions. Beginning a promotion strategy later than your competitors translates into significant losses for you. A solution intelligent enough can help you plan a timely promotion strategy by tracking your discounts against the competition. Moreover, up-to-date intelligence lets you make snap decisions that could have great impact on your business.
Stock it Right
It is not always about price. Sometimes consumers, even the prudent ones, are willing to make a purchase but the product is either not available or out-of-stock. So, if you do not have the right inventory at the right time, you are losing out on revenue and giving customers the impression of mismanagement. According to a survey by the E-Tailing Group and trading partner software vendor BetweenMarkets, 57% people who get an out-of-stock message go to competitors’ web sites or stores to find what they want.
To ensure that there no gaps in your inventory, monitor and compare your assortment vs. your competitors. It is possible that they have popular items that you do not have, and vice-versa. Stock intelligence will empower you to optimise your inventory management and make intelligent merchandising decisions.
Econsultancy found that 74% shoppers abandoned baskets due to high shipping costs. Given this figure, it is essential to monitor your shipping charges vis-à-vis your competition, and check whether your rates are reasonable or not. Alternatively, you can go through various delivery charges to come up with a flat shipping rate for your products.
Furthermore, you need to develop the eyes of a hawk if you want to attract price-sensitive customers. So invest in a good market intelligence solution – one is accurate, precise and up-to-date – to constantly monitor your competition.