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The Data Mining By Retailers Video

Mining for data is a great way to get ahead of the competition. The task of mining can be a lot of work, but the effort is worthwhile. It also shows where you stand out from the competition, and where the competition has unique products.

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You can use this information to optimize your assortment and improve the selection of products you offer your shoppers. If an item is very volatile within a best seller listthen you should be aware Retallers an investment in that product may not be entirely worthwhile. Viewing competitor prices over time can give you an idea of how they price their products, and these trends help you improve your own The Data Mining By Retailers strategy in the future. If you know a competitor is constantly undercutting you, then you know they are competing on price. This means you have to step up your pricing game and might have to be more aggressive.

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But if your sales trends remain the same after undercutting competitors, then you know you can charge a premium. This pricing power can help you stay competitive without sacrificing your profit margins. Without identifying these trends, you might simply undercut in an attempt to stay competitive. You have the competitive data and coupled with your sales data, and you can use it The Data Mining By Retailers make educated and well-calculated price changes to stay competitive and profitable.

You can then use that analysis to structure your ongoing strategy. In the example above, testing the impact of your price changes against your competitors shows you where you have pricing power and where you have to be more competitive. This helps you identify your strengths and weaknesses.

Data mining in retail industry case study

If you have pricing power, you know that consumers view your brand in a more favorable Dafa than your competitors. At the same time, it helps you understand which competitors are becoming more viable threats to your business, and which The Data Mining By Retailers you can capitalize on for example, identifying areas where you could actually raise prices. There will be competitors who will cut their prices when you do and hurt your sales numbers, and there will be competitors who will attempt to shrink your assortment gap.

An immediate result of data mining continue reading automated repricing. Retailers can stay competitive by changing the prices of their products in real-time to combat heat seeking competitors. There are a couple of ways to reprice your productsboth of which revolve around data. You can use competitor-based repricing a type of rule-based repricingor you can use dynamic pricing. Competitor-based repricing uses competitor prices as benchmarks to base your own price changes on. Dynamic pricing takes a handful of metrics into account to determine the optimal price for driving revenue or profit growth.

One of the main factors is competitor price. To build a successful dynamic pricing strategy, you need to build an intelligent demand estimation engine, fueled by competitor data. Adding in historical sales, elasticity and factors for seasonality gives you the most comprehensible formula to find the right price at any given time. If your price goes up and shoppers choose you even though there are cheaper options available from other competitors, you know you can test higher prices in the future to maximize your margins while perfecting your pricing strategy.

Why sacrifice profits if you know you can make more without impacting demand? Competitor data is the most Retsilers asset a retailer can Te in eCommerce. Using it to further optimize assortment and pricing strategies is one of the best ways to get ahead. Wiser can help you collect competitor data and utilize it in a way that will make your business the strongest The Data Mining By Retailers can be.

Repricing An immediate result of data mining is automated repricing. Latest Posts. Share this.]