Overtime, price intelligence has adapted to enhance 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 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 “Additional Benefits Of Price Intelligence”, we aim to give you some insights into the different ways price intelligence is evolving and being applied, beginning with how analytics is being used to optimise ad spend.
With price still being the top-ranking factor consumers take into account when making a purchase decision, marketers use price intelligence in all paid marketing campaigns to help with conversion rate optimization. All marketing strategies require you to know who you are competing against; competitive intelligence goes a step further than this. Tools such as Semrush give you a great understanding of the search marketing world, both organically and through paid search advertising like PPC. It has fast become fundamental, as understanding the tactics and strategies used by your competitors will help your overall return on investment with your ad spend.
In the same way, you won’t start a PPC campaign on keywords for which you rank number one organically. Why would you want to run any sort of paid advertising on a product or service that you are not that competitive in terms of pricing?
Having a price intelligence system in place provides marketers with important, useful information and a wide range of analytics based on 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 this data can be manipulated in different ways to best suit you, including benchmarking on different levels such as product, brand, categories, or competitor level. Customizing the Data visualisation allows the relevant big data to be the best fit for your needs.
This price intelligence information then becomes actionable insight in terms of optimising ad spending 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 along with a good product margin allows you to optimise 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, by being able to see stock information and your price position, you will be able to identify products that could benefit from some promotional push.
Another key opportunity to be used is the knowledge of your competitors’ promotional information, whether it is free delivery, buy one get one free, discounted products, etc. It enables you to quickly respond and optimise product prices and the price of your PPC ads.
Even introducing your own short-term marketing strategies with the needed data speeds 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 preparation of implementing some form of advertising. The access to all the data needed in one place also accelerates decision-making.
Price intelligence is just a small piece of the puzzle when using competitive intelligence in your marketing activities. So, to end this blog post off, here are 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.