Overtime price intelligence has adapted to benefit multiple areas of the retail sector. Having all the key knowledge required for businesses to price intelligently, has caused this data to be manipulated and used for a multitude of additional benefits. More bespoke price intelligence solutions are being implemented to benefit a variety of key business areas and functions.
5 Additional Benefits Of Price Intelligence –
- Optimising Ad spend.
- Inventory management.
- Range analysis.
- Automating the pricing process.
- Promotional pricing strategies.
In this series of content the “Additional Benefits Of Price Intelligence”. We aim to give you some insights into the different ways price intelligence is evolving and being utilised starting with how the analytics is being used to optimise ad spend.
With price still being the highest-ranking factor consumers are taking into account when making a purchase decision. Marketers are utilizing price intelligence into all paid marketing campaigns to help with conversion rate optimization. All marketing strategies require you knowing who you are competing against furthermore this is taken one step further by utilizing competitive intelligence. Tools such as SEMrush give you a great understanding of the search marketing world both organically and through paid search advertising like PPC. This is fast becoming fundamental as understanding the tactics and strategies used by your competitors will help your overall return on investment with your ad spend.
The same way you wouldn’t start a PPC campaign on keywords you rank number 1 for organically. Why would you want to run any sort of paid advertising on a product or service that you are not that competitive with in regards to pricing.
Having a price intelligence system in place gives marketers key useful information with a wide range of analytics built upon data such as-
- Up to date prices on each product alongside your competition’s prices.
- Historical pricing data.
- Profit margins.
- Stock availability.
- Delivery costs.
- Your product feed against your competitor’s product feed.
- Promotional information.
All of this data can be manipulated in different ways to best suit you such as benchmarking on different levels such as product, brand, categories, or a competitor level. Customizing the Data visualization allows the relevant big data to be best fit for your needs.
This price intelligence information then becomes actionable intelligence in regards to optimising ad spend through some of these benefits.
The ability to identify key products for ad promotion. Being able to identify products, or groups of products where you have a competitive advantage price-wise alongside a good product margin allows you to optimize your ads conversion rate. Take advantage of stock availability information and quickly identify opportunities where some form of paid advertising would be a win-win. On the other hand, being able to see stock information and your price position you will be able to identify products that could benefit from some of promotional push.
Another key opportunity that we see getting utilized is the knowledge of your competitor’s promotional information whether this is free delivery, buy one get one free, discounted product etc. Having this knowledge allows you to quickly react and optimize product prices and the price of your PPC ads. Even introduce your own short term marketing strategies with having the data needed to speed up the decision-making process. A lot of the competitive pricing analysis data collection is done on an Ad-hoc basis when going through the planning and prep of introducing some form of advertising. The ability to have the data needed in one place also speeds up decision making.
Price intelligence is just a small piece of the puzzle when utilizing competitive intelligence in your marketing activities. So, to end this blog post off here is five top tips to increase your advertising campaigns-
- Keep up to date with advertising trends.
- A/B test and give your Ads a new lease of life.
- Take advantage of SEM software.
- Create high quality converting landing pages.
- Don’t put all your eggs in one basket.