Pricing 101 | eCommerce Matters Ep. 034
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The latest episode of The eCommerce Matters Podcast is here, entitled "Pricing 101".
We go back to basics – and take you through a checklist of how to get the most of your pricing with BlackCurve.
Tease out every bit of optimisation!
We discuss what is price competitiveness, pricing outliers, the importance of communicating pricing insights across departments, price automation, the connection between pricing data and digital marketing metrics, and much more!
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Podcast Summary
Introduction
Philip Huthwaite and Rob Horton engage in a discussion about pricing strategies in the context of e-commerce. They emphasize the importance of understanding price competitiveness and utilising data to make informed decisions.
Understanding Price Competitiveness
They suggest that organisations should determine what price competitiveness means for their specific business. Accessing competitive data is essential in this process. By sharing insights across different departments, companies can gain a deeper understanding of their market position and uncover potential areas for improvement.
Analysing Pricing Data Tactically
To analyse pricing data tactically, Philip and Rob advise focusing on where your prices stand compared to competitors. Identify areas where you are the cheapest or the most expensive and work on bridging that gap. This analysis helps avoid extreme pricing scenarios and ensures your prices are aligned with market trends.
Implementing Automation
Before implementing automated pricing solutions, it is crucial to seek internal insights. Engaging with other departments allows you to gain a comprehensive understanding of your organisation's data and needs. This knowledge ensures that automation aligns with your specific requirements and avoids potential pitfalls.
Philip and Rob recommend gradually implementing automation. Start with basic competitor rules and gradually incorporate more sophisticated features such as price elasticity and stock level rules. This incremental approach allows you to fine-tune and optimize the automation process, leading to more effective and accurate pricing decisions.
Using Marketing Data
The conversation highlights the power of marketing data. While caution is advised when incorporating marketing data into pricing decisions initially, once you have a few weeks of experience with the data, it can be utilised to enhance pricing strategies and improve marketing performance. Marketing data can provide valuable insights into the impact of pricing on consumer behavior and help challenge existing assumptions about price competitiveness.
Continuous Evaluation & Adaptation
The discussion concludes with the importance of continuous evaluation and adaptation. Pricing and the market are constantly evolving, and organisations need to regularly reassess their pricing strategies. They should consider factors such as cost changes, rapidly pass on cost price adjustments to consumers, and adapt quickly to stay competitive and maximize revenue.
Conclusion
In summary, BlackCurve is a company that assists e-commerce businesses in making pricing decisions and optimizing their digital marketing performance. By understanding price competitiveness, utilising data effectively, and gradually implementing automation, organisations can make informed pricing decisions and achieve greater success in the competitive e-commerce landscape.
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