Rethinking Retail Pricing: 5 Things to Consider for Retail CEOs
Today’s technology-empowered shoppers have unprecedented control, unfettered access and unlimited options. With mobile at their fingertips, they have access to an infinite universe of shopping options. They’re shopping seamlessly, without borders, looking for the best offer. In control, they are driving the change cycle and dictating the speed of retailing today. It’s both a risk and an opportunity as their loyalty is renewed, or revoked, with each interaction.
A recent study by Cognizant and RIS News, 6th Annual Shopper Experience Study, noted that one area that has a decisive impact on why shoppers refrain from purchasing a product in a store is price. They found that more that more than 90% of shoppers said price is the top reason for buying an item from a different retailer after they have visited a store and did not make a purchase.
So to boil in down, the one area that can have the most incremental impact in retaining customers is pricing. In a time when shoppers can compare prices anytime, anywhere – the risk for retailers is getting caught in a race to the bottom where you can destroy margins and profitability.
Responsive Retail Pricing Strategies
Deploying strategies and next-generation pricing technologies to win sales, drive gross margin growth and profits is mission-critical. This means adopting what we call a responsive pricing model and executing pricing strategies to avoid the race to the bottom and losing customers.
In this whitepaper titled Rethinking Retail Pricing, I’ve outlined 5 things for retail CEOs to consider to price intelligently and generate a 10x yearly ROI on average.
- How to future-proof your business
- Why turning data into actionable pricing decisions is a must
- How next-generation pricing tools can yield speed to ROI, increased sales, gross margin gains and profits
- How high-performance architecture that is SaaS-based could mean the difference between leading versus following
- Why selecting the right strategic technology partner could deliver the speed, scale, expertise and higher ROI
Just imagine how these incremental profit dollars could be strategically invested to accelerate and bolster other critical business initiatives.
I welcome your feedback and comments on this very important topic.