There are almost 8 million online retailers around the globe that are competing for sales. With such tough competition, brands need to implement effective strategies and use technologies or software in order to win the digital run. One of the most effective strategies recommended mostly by professionals is the dynamic pricing strategy.
How Does Dynamic Pricing Perform?
Dynamic pricing has many alternative names in a retail market that are demand pricing, surge pricing, or time-based pricing. As the name suggests, this strategy keeps constantly adjusting products’ prices sometimes in minutes in accordance with the demands and supply of markets. This concept is not a new one but now it’s proving to be more beneficial for e-commerce businesses. Some of the main benefits of using a dynamic pricing model are as follows.
- Boosting sales
- Maximizing profits
- Saving your money in the long run
- Creating a higher level of demands
- Allowing pricing to reflect demand
- Providing the ability to better understand customer behavior
- Allowing flexibility without the brand value being compromised
- Is completely manageable with the use of the right software such as MAP monitoring or DSA providers.
- Not completely error-free but still controllable.
There are several other pricing strategies but businesses and online retailers should choose strategies according to their wants and needs. Whatsoever your strategy is, your top priority and complete focus should be on finding ways to win the digital shelf and effectively grab consumers’ attention. The digital shelf is a term used to refer to online places where customers search and purchase products. There are 3 basic principles you should focus on primarily to win the digital shelf in 2022.
- Engaging customers – Through rich and engaging content, your brand could come along every time with their consumers
- Fast execution of commerce strategies – businesses should learn fast what suits them best and what doesn’t and act accordingly
- Try being the best partner of your customer – Delivering products and content according to the customers’ wants and needs so that they prioritize you
Digital Shelf Analysis
Now, this is where the concept of Digital Shelf Analytics providers or DSA arises. DSA is basically a software solution that assists in tracking and monitoring performance data as well as keeping track of retailers’ competitors thus optimizing digital shelf. Below are some effective benefits of using Digital Shelf Analytics providers.
- Maximizes product visibility — DSAs ensures that preferred keywords that have the correct visibility are being used for your products. It also focuses on revealing search ranking as well as ranking in comparison to your competitors’ similar products.
- Product prices are efficiently monitored — The most challenging factor in the digital shelf is constant price changing which is almost impossible to be monitored by humans. Leading Digital Shelf Analytics providers use Artificial Intelligence for constant analysis of pricing and promotions data which helps in understanding how your products are priced by retailers.
- Leading the battle of reviews and ratings – DSA warns retailers when any of their products have negative or not enough customer reviews to catch consumers’ attention.
So, by using effective pricing strategies and DSAs e-commerce businesses can definitely lead the digital shelf.
