Retail pricing systems of the last decade espoused transparency but were challenged at delivering. These first-generation price optimization systems delivered science but not fully adapted to retail business process or merchant needs – not an uncommon outcome for any first-generation technology application. Retail pricing technology has evolved. Watch our recent video Price Optimization 2.0.
Merchants Require Actionable Information not just Big Data
Retailers are swimming in data and yet today have less actionable information, necessary to compete effectively. Because of online transparency, retailers must move faster while maintaining price image, consistency and protecting profitability. Omnichannel retail demands more dynamic pricing and while big data analytics can be useful in consolidating information from multiple sources, they still require additional retail science to deliver “exception-based” merchandise insights.
Advancements in retail pricing technology can eliminate the need to dig for merchandise insights and deliver actionable information to merchants and analysts. For example, systems now deliver “competitive alerts” only for product prices which are out of compliance with competitor rules; isolate key value items (KVI) which must be priced competitively and non-KVIs which present a margin opportunities; and identify product line inconsistencies which must be corrected to present a consistent shopping experience.
Merchants need insight into which competitors, products and categories really matter, together with a clear understanding of the associated retail pricing recommendations and their impact on the organization. In other words, transparency.
Additional Insights. Register for our Volume #6 whitepaper Exercising Price Leadership which discusses evolved technologies for competing more effectively. Watch our recent video Price Optimization 2.0.
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