By Sujan Patel / Forbes,
Pricing in today’s world has become hyper-competitive. As a result, great products frequently go unpurchased, all because they’re priced slightly higher than other competitors on the market. Unfortunately, even a few cents difference can steer a customer towards another product.
While profit margins are certainly important, slightly lower sales margins are better than nonexistent ones. Because of the steep price competition found online, it’s more important than ever to adopt a competitive pricing strategy for your business. Luckily, there are several tools and services out there that are ready to help you create the dynamic pricing environment that’s required to succeed.
Companies such as the ones profiled below offer you up-to-date, live data sets reporting precise price points for products currently selling on the market. Any of these tools can be helpful when it comes to evaluating and developing a modernized pricing strategy for your products. Here are five to check out today:
With very detailed, yet easy to read reporting, import.io makes it very easy to research existing products on the market, as well as their current price points.
Making decisions that can impact the success of your business – especially pricing decisions – comes down to information. More information allows you to make a more informed and, therefore, better decision. In business, accurate, detailed data is an essential part of making pricing decisions.
From the different data sets available, comparison is key. To start, you need to know what’s being sold and at what price in order to determine what your products should be marketed for. But this in and of itself is not enough.
In addition, you need to dive further into the data, investigating exactly why your competitors are selling their products for a specific amount. A lower price isn’t always a good thing. It can be an indication of a lesser value. For example, if a product is selling for 12% less than yours, but only includes 70% for the features, you’re offering the public a much better product with significantly greater value.
Import.io allows you to do all of this analysis with one simple data set. The report compares products, specific features, and their respective prices in as little as 60 seconds.
Big data can be messy. Thankfully Trifacta has your back. Their system allows huge amounts of data to be tackled so that specific insights can be extracted during analysis, allowing your team to make better decisions concerning your products with regards to your industry’s market trends and movements.
In simple terms, Trifacta is essentially Excel combined with Openrefine for large files. Their Data Profiling features provide immediate visibility into unique elements of data sets, such as data distributions and outliers to inform the transformation and analysis process. Use Trifacta to clean and wrangle data that Excel can’t handle, while also taking advantage of the program’s easy-to-use statistical tools.
Trifecta’s reporting software allows unrivaled evaluations of large data sets, enabling you and your team to see items such as distribution curves of columns or outliers within the set. These unprecedented features make it easy to evaluate your data for erroneous numbers within minutes, compared to more traditional reporting methods that take much longer.
Data is only as good as the analysis that’s performed on it. Unless something insightful can be gained from it, collection is useless. No matter how clean or well presented a set of data may be, its purpose is only found by uncovering the true meaning of the cells throughout your rows and columns. For this reason, a good visualization tool is key to helping you uncover trends and patterns in your data once it’s been collected and assembled.
Tableau lets you collect and visualize data in a simple drag and drop interface, which people at any skill level can use to analyze data. The service allows you to connect volumes of data of various formats and visualize it through customized dashboards and reports that are generated automatically through the options you choose. As added perks, the program is connected to Hadoop so that you can handle large volumes of data, and also allows you to quickly store data from both Salesforce and Google GOOGL -1.72% Analytics.
Not only does Tableau’s live connection let you see insights in real-time, you can also schedule the application to automatically refresh itself, making sure that you and your team have the most updated data set possible to work with at any given time. The company notes that relevant dashboards can be created from your data at ten times the speed of traditional business information products. If time is money, then Tableau is a worthy investment.
While none of us can guarantee what the future holds, technology has given us the tools needed to more accurately predict what will happen, and – more specifically – what customers will do. It’s a time-tested truth of business that if you really want to elevate your pricing strategy, you need to be proactive rather than reactive.
BigML is a simple-to-use machine-learning tool that can actually help you predict what will happen in your market. Each customer and their demographics function as a training example for the machine, allowing you to predict the result of scenarios both inside and outside of those found within your data. As an example, your data could be used to predict whether or not an existing customer will renew their subscription with your company in the future, or whether a new customer – based on their age and gender – will purchase a product at a given price point.
Your pricing strategy is about so much more than what you’re charging. It’s also about how you interact with the people who are visiting your website. People buy from people. Your website needs to be inviting and sensitive to those in your market. These days, customers have come to expect a personalized experience before a sale is made. The more an individual can relate to your website and see value in a relationship with your products, the more likely they’ll be to buy.
KISSMetrics delivers key insights and timely interactions that help turn visitors into customers. The system analyzes your visitors, showing you what’s working and what’s not across multiple devices from start to finish. This allows you to make decisions that will lead to a dramatically increased conversion rate. Through the program’s Conversion Rate Optimization Tool, your website can prompt customers with the right interaction – at exactly the right time – to drive even more engagement and conversions.
The world of business is changing, but not everything is different. Product and service sales have long since gone digital, yet customers long for the personalization found in one-on-one environments. Using the tools listed, you can not only modernize your pricing strategies, but also analyze what behaviors will lead to higher sales at the maximum price point for your company’s products and services.
It’s a win-win for you and your customers, and it all happens thanks to big data and the tools listed above.
What tools do you use to implement dynamic pricing in your company? Share your recommendations in the comments below!