To establish a price point requires a clear understanding of customer’s flexibility to adjust to the price, retailer’s market position and intelligence that can compare current and historical price data. Analytics has been extremely effective for retailers to gain visibility into appropriate price points and anticipate its effect on their business. By creating granular-level demand models, retailers can analyze and predict customer demand, identify opportunities by making comparative study of present and historical data, and appropriately time effective promotion campaigns.
Most economists have concluded that pricing elasticity and inelasticity directly depends on the demand of the product or commodity. Business experience and business rules affirm that pricing remains aligned to category roles, competition and item-specific relationships such as size and brand.
Element helps enterprises to understand customers better by leveraging predictive analytics capabilities. With analytics, retailers can adopt a more customer centric approach by drawing insights into customer purchasing habits. Element enables enterprises to understand customer response on pricing changes, understand Omni-channel demand benefits and thereby evaluate their go-to-market strategies to serve customers. With visibility into item-specific, location specific pricing, retailers can easily track price and markdown status, provide the ability to analyze pricing structure across the value chain. Enterprises can also integrate competitive price monitoring services to compare current and historical pricing. This helps them gain insights on how competitive pricing affects sales, store traffic, customer loyalty, and more, enabling the optimization of pricing & markdown strategy.
Our analytical capabilities empower retailers to:
- Compare product performance
- Evaluate promotion effectiveness across individual items, categories, geography & vendors
- Monitor and forecast all aspects of the merchandising process, including returns, performance analysis, financial planning
- Assortment planning