Comparison shoppers ― whether at home, in stores or on the go ― continuously check online pricing for the best, most competitive deals. The ongoing evolution of the deal-savvy shopper, coupled with constant online pricing wars, has created an environment of constant change.
New dynamic pricing solutions can help retailers make better pricing decisions that can protect and grow margins, not simply match price. The PriceTrac monitoring solution from Ugam now includes a rule-based dynamic pricing tool for retailers. The SaaS solution delivers more competitive price elasticity for improved margins and conversions by automatically adjusting prices throughout the day based on competitor actions and internal factors, such as fluctuating inventory and profit margins.
Armed with rules-based dynamic pricing, PriceTrac users can create statutes that adjust product pricing whenever pre-set criteria are met. Retailers can offer competitive prices, improve margins and increase conversions on an ongoing basis, without extensive internal effort. Retailers also can see which products were repriced automatically and review the overall impact on sales.
Examples of factors retailers can utilize to create rules for dynamic pricing include:
• Competitor prices, without matching only to the lowest price;
• Page analytics, such as traffic source, number of page visitors and length of page visits;
• Instant gratification;
• Feedback loops based on performance goals; and
• Customer segments.
Building on this base of accurate pricing data, Ugam has “added a cutting-edge dynamic pricing rules engine to help retailers continuously stay ahead of competition without needing to rely only on dropping prices,” said Sunil Mirani, CEO of Ugam. The new algorithms “help identify, analyze and re-price to meet category objectives.”