Pricing: Crawl, Walk, Run
Expand as Your Needs Change
Today’s retail realities have influenced many companies to embark on a journey towards price optimization, but where does one start? All glory comes from daring to begin. In your unique pricing journey, begin at your own pace and then go as fast as your business requires. Our “crawl, walk, run” staging offers an evolutionary approach to pricing that allows you to focus on your most immediate priorities and still gain significant results.
Price… The original function in retail. When your business is selling goods and services, price is the ONLY thing that directly determines revenue.
It’s because of its importance that it is complex. You, consumers, and vendors all have a vested interest. Even a slight adjustment can have significant effects on your revenues and on what customers think of you.
There’s no “magic” switch set the right prices. Cute taglines, easy to rattle off sayings can grab your attention but they don’t make it happen.
When you read anything about pricing, it’s all about using predictive analytics, machine learning, and AI. And while science can provide significant improvements, you know that it isn’t the only answer. It’s one of them but it might not be the one you need right now.
Improving pricing is not about focusing on the results. Just like sports, just like work, just like any goal. It’s about mastering the fundamentals. They aren’t sexy, they aren’t inspiring, and they aren’t headline grabbing, but they achieve results.
In pricing, some of those fundamentals include:
- Gathering, accurate competitive prices and the changes as they occur and then making the necessary adjustments on your own prices;
- Knowing the items that customers really care about, and how they affect your image with them;
- Figuring out the best price zone configuration of your stores for each category, and how the online channel should align;
- Understanding out of all the competition across your entire business, which ones in which areas for which items, really affect demand.
You can then build on this knowledge by:
- Creating a streamlined and automated workflow that improves responsiveness, efficiency, and granularity without adding more people;
- Supporting an extensive library of pricing rules to manage all the different nuances and ensure compliance;
- Providing transparent results, so people can understand why the price is the way it is OR even better maybe they can maybe simply the rules to the most effective ones;
- And actually having a forecast to understand what the effect of the price is on the demand.
From there you can continue to build through:
- Influencing the customer demand signals by adding predictive analytics and science;
- Incorporate business strategies to align your pricing to your goals;
- Add scenario planning to Plan, Simulate, & Respond to future market outcomes, instead of waiting for them to overtake you;
- And then finally, by combining all of this you can add additional workflow automation and exception management to stay ahead of consumers by ensuring you are priced strategically, everywhere, in this moment and the next.
This still can be a lot for many retailers to do all at once. The good news, is you don’t have to.
At Revionics we’ve designed our entire pricing solution to allow you to focus on where you need to and still gain significant results. There are several paths and several options for you to choose from.
- You can choose to start with gaining additional competitive information through competitive insights.
- Or maybe you want to dip your toe into analytics to see what it can offer for you and what immediate insights you can get from it.
- Other retailers, with our price management solution, can streamline their processes, improve rule adherence, and actually get a forecast, thus greatly improving their efficiency, scalability, and decision making.
- From that point retailers can decide to incorporate dynamic pricing to ensure they are pricing at the right frequency while keeping the right alignment for each of their channels.
- And then many retailers move towards optimization, to manage their business strategically and with data analytics.
Not all retailers take the same path. Not all first take on dynamic pricing then optimization. Some do the reverse. Some decide to go directly from price entry systems to optimization, some to management. Some don’t need to incorporate extensive competitive insights until they first focus on other areas of pricing, but then they come back to improve that. Every retailer’s journey is unique for them.
Yet, since the hardest part of any journey is starting, with Revionics’ solutions you can being at your own pace and go as fast as you need. We refer to it as a crawl-walk-run approach and have already used it at many retailers across the globe. With it there is no re-learning or starting over when more is added.
Another unique advantage of Revionics’ solutions is the sum is greater than the parts. Because it uses a predictive learning platform and shares data there is commonality in learnings and the insights are easily leveraged across areas. This is compared to doing it in silos which results in conflicts, workflow clashes, and multiple versions of the truth.
Retailers have found benefits at any stage they are in, but they obtain 50% more benefit when they are transitioning to optimization from management. But because of the prior mentioned Revionics advantage, they find this transition in Revionics’ solutions to be fairly easy compared to starting from nothing. Which then changes the nature of the first statement “not that you obtain 50% more benefits from optimization,” but you are “leaving 50% of your benefits from not taking advantage of optimization.”