Setting an optimum price for a product or service is an intricate and risky endeavor; the sales and profit of a business gets highly affected even when the price is off by a cent. Businesses should be able to find the ideal price for their products that the customer is willing to pay and gives you a comfortable profit margin. Data analytics solutions and pricing analytics can churn through millions of cases and variables, rendering the most exemplary pricing for products/services.
Focus on your data
Every business, irrespective of its size or market, owns large volumes of advantageous data. If you are a business owner and you are unable to develop exemplary pricing strategies from data, it is not because you lack adequate data, it is because you are unable to extract its true potential with impactful data analytics solutions. To drive exceptional decisions and profit, businesses should know how to accurately interpret the data available to them. Data strategies such as business intelligence and customer research allow business owners to re-focus on the factors that they might have overlooked such as product preferences, broader economic scenarios, sales negotiations, etc and fixate on the factors that drive prices according to the customer segment.
Invest in Automation.
Analyzing thousands of products’ prices and performance is a time-consuming and expensive activity. By implementing pricing automation, you can pin down even the smallest customer segments, determine the aspects that drive value for every segment and parallel it with historical data. Automation of price analysis and machine learning makes it much easier to duplicate analyses and tweak them in sync with diverse products and market trends. It saves you the effort, time and resources needed to do these analyses from the scratch every time. Follow this link to read more about pricing automation backed by artificial intelligence and how it benefits.
Optimize Customer Acquisition Cost
Customer Acquisition Cost (CAC) is a crucial metric that denotes the effectiveness of your pricing and customer acquisition strategy. Data analytics solutions help you gauge Customer Acquisition Cost against Customer Lifetime Value (LTV) and determine the right price for a product/service and the optimum amount to drive new customers to your business without sabotaging the revenue from that customer. This formula fixes the holes in the pricing strategy, reduces churn and increases revenue.
Swift Price Comparison
The efficacy of your prices is always ascertained by competitor price comparison; because that is exactly what the customers do before making a purchase. With thousands of brands selling products worldwide and online, comparing prices conventionally can become a herculean task that produces inaccurate results. Businesses can leverage data analytics services, pricing analytics and Artificial Intelligence to compare competitor prices in seconds. By automating this process, a significant amount of resources, effort and time can be saved; you can also track how customers responded to various prices in real-time.
To devise a productive pricing strategy, it needs to be augmented by big data and powerful data analytics solutions. Visit our website to find dynamic data analytics services and consumer research tools that provide functional access to industry-specific and value-based business intelligence, giving your business better mileage over the competitors.
