“Retail pricing will become highly visible, real-time and localized.” Erik Lystad, The Home Depot.
This quote was excerpted from an NRF Stores Magazine article covering an NRF 2015 presentation with Erik Lystad, Sr. Mgr, Pricing Strategy for The Home Depot and Jim Sills, CEO for Clear Demand. Read the article. This article spawns a few more important talking points as follows:
Faster Competitive Intelligence. Erik suggests that “pricing strategy must be articulated, nuanced, defined in advance and based on fast and accurate competitive intelligence.” Today, price surveillance technology (think dynamic pricing) needs to process competitive pricing data feeds from any source, at any frequency, compare prices with the retailers’ pricing rules and alert merchants when prices are out of compliance. Read our white paper on competitive pricing.
Rigorous Pricing Science. The article headline reads “effective omnichannel retail pricing requires omniscience.” Today, pricing science needs to support shifts in shopping behavior and increased competition and be more precise and predictive. Read our white paper on what’s new in demand science.
Robust Product Intelligence. “To know about your customer is not enough,” said Greg Girard, IDC Retail Insights. “You have to understand everything about the products and services your competitors offer.” Online transparency has expanded the number of attributes which influence consumer purchases, requiring a shift from SKU-based to attribute-based demand modeling. Read our white paper on why attributes are so important in forecasting demand and see Greg’s recent commentary on why product intelligence is case for big data analytics.
You can also register for our webinar March 17, 2015 entitled “Pricing in an OmniChannel World: A Retailer’s Survival Kit.”
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