In this fast-growing era, customers are very demanding and have the ability to surf all the products across the world with the freedom to compare and order whatever they consider a good deal. Digitalisation is one of the biggest perks for businesses as it not only ensures to give visibility around the world but also opens the possibility of borderless expansion of a brand. But with benefits, there comes a big disadvantage, which is, now business competition is not few other companies in that area, but now competition is around the globe with countless competitors, big and small.

This can scare small businesses and even force them to fall. That’s when Competitive Pricing comes into the scene, competitive pricing not only monitor prices of the competitors it makes sure small businesses with limited resources and a lot of work can plan effective pricing strategy backed by data and according to market in very less time and efforts, so they can work on the growth of their businesses.

But before adopting any tool and technique, it is important to know where this tool stands in the future, will it vanish in the crowd of advanced technology or will it come to the limelight and dominate the market with the services and advantages it provides.

Below are some fields where competitive pricing can thrive and help the business in many ways.

AI and Machine Learning in Pricing

Artificial Intelligence also know as AI is an evolving field, experts are trying to see where they can automate the work and where not, and competitive pricing is one of the field where artificial intelligence can automate not only the repetitive efforts of the humans but can also increase the speed and will be accurate than ever. Revolutionising competitive pricing by allowing businesses to understand and analyse millions of data points in real-time, backed by AI-powered pricing systems.

There are some obvious advantages when competitive pricing and AI are combined. Let’s discuss these points.

– Predict Customer Behaviour

– Identify the Ideal Price Point of Each Product

– Adapt Prices Based on Market Changes

Competitive pricing is a very useful tool when it comes to understanding the customers’ behaviour, market pattern and many other things, and when it is backed by AI, then its effectiveness and accuracy will increase a hundred times, making it an unbeatable tool.

In addition to that, a machine learning algorithm is the process when a machine or a tool is continuously learning and improving from it’s mistake and feedbacks of the user, by which the human resources will not have the roles of debugging the bugs and modifying the codes which sometimes makes the code inefficient and sometimes makes irrelevant changes.

Real-Time Price Monitoring and Automation

With real-time price monitoring tools, businesses, if wanted, can have the access to real-time data which is essential for so many industries these day. For example, fashion industry, food industry, etc. This can help businesses to track when the competitors prices changes and can make immediate changes.

And when we talk about the future of competitive pricing based on real-time parameter, experts predicted that there could be more tools, not only providing real-time data but also make it possible for tools to adjust prices more effectively and based on the business rules so that business can be relieved from the pricing strategy completely and work on quality of their products and expanding their businesses.

If we talk about real-time data from competitive pricing, there are some key benefits, as follows:

– Keeping an eye on competitors in real-time

– Help in faster decision making

– Maximises margin without losing customers.

With the above benefit, there are many businesses which are waiting desperately for competitive pricing to get more evolve and make their growing journey seamless and blockless.

Wanted to try competitive pricing? Try Prodfinity’s Competitive Pricing tool.

Personalised and Dynamic Pricing

In today’s world where there are countless option of everything from a casual thing like a shirt to as expensive as diamond ring. And with options the customers behavior is also becoming diverse and indifferent at the same time. In simple words, all the consumers don’t behave the same way and the responses divided them into a lot of minority.

But pricing experts understand this and know dynamic pricing tools need to be more effective than ever to help businesses stay competitive. So dynamic pricing, which adjusts the prices in response to changes in the dynamics of the market, will understand the personalised behaviour of all the customers. Machine learning and AI will come handy and after that every customer will be offered optimal prices on the basis of their browsing history and other factors.

Just like E-commerce platforms offer discounts or more enticing offers for repeat customers.

Curious about what dynamic pricing does? Check out our blog Increase your Dynamic of Growth with Dynamic Repricing

Integration with Voice and Visual Search

The human race is so comfortable today, which was never possible in the past; the new inventions and technologies make sure to improve those experiences even more. One of the most important examples of these technologies is voice assistants like Alexa and Siri. As voice assistance is taking over the market and people are using it for everything, even for shopping. So, in the future competitive pricing tool will make sure that the prices of the products that are integrated with voice and visual assistance will be optimal.

The optimal pricing will ensure the retention of the product and brand visibility, which can avoid the decrement in sales and revenue.

Geo-Targeted Pricing

Geolocation-based pricing is a technique in which the price of the product will be different according to the location of the consumer and the demand of that particular brand in that area.

In simple words, in geolocation-based pricing, the price of the same product will be different in different locations, which could differ from city to city or country to country. Which can be very beneficial for the businesses which are present in the e-commerce market globally, retailers with different regional competition, etc.

Conclusion

Competitive pricing is not just about beating the competitors with right prices, but also understanding the customer’s behavior and competitors pricing strategy so you can be very good, so when market changes you are prepared and even sometimes excited about the changes as you have already strategize about the changes and planned how to dominate the market with right pricing and service strategy.