Pricing and Marketing insights: how to create synergies?

Thus, speaking of pricing management: how do you actually do this and offer the right price to consumers?

Mastering Big Data to gather insights 

Identify internal information sources

External sources

By their own means or through the intermediary of service providers, most companies have information on their environment and their customers which benefits from being put into perspective with internal data: socio-cultural monitoring and trend analysis, competitor data, information gathered on the web / social networks on the sector, etc.

Process the insights gathered 

Whether internalised or outsourced, this stage requires two types of skills:

 Data engineering

This involves making data accessible to all teams, which includes collecting and cleansing data, as well as ensuring that information is fed back to the business applications.

 Data science

Integrating marketing insights into pricing strategy

A stage that is not always well anticipated: the challenge is not only to bring out consumer insights but above all to be able to transcribe them into operational rules.

There are several ways to integrate them

• Transcribe them into product attributes, to refine pricing rules
• Determine them in mathematical form, using algorithms to improve sales forecasts or the performance accuracy of indicators for example
• Include them as information in analysis screens to guide decisions

The benefits of this integration: optimising the shopping basket while guaranteeing customers a shopping experience that meets their expectations.

Possible impacts on pricing strategies: value created for both the brand and its customers

• A more refined and relevant catalogue segmentation:
  • by product typology: a study conducted by our Data Lab for a drugstore chain has made it possible to use an algorithm to distinguish the products that generate traffic in the shop from « complementary » products that are linked to them, and from those purchased independently. This information helps the store know how to adjust price positioning of these products and promotions to produce the targeted effect (attracting customers, increasing the purchase basket, building loyalty through personalised offers)
  • according to price sensitivity: for a tyre company, certain specific brands will be strongly compared on price by customers, such as Michelin in France, while for others, other characteristics are favoured

• More relevant chaining between products: identifying the attributes valued by customers makes it possible to place products on a coherent price scale and to propose prices that reflect this value (a consumer would understand that an organic product is more expensive than a conventional product, but the opposite would give rise to mistrust regarding its quality).

What capabilities to look for in a pricing tool?

• Integrate different types of insights according to your needs insight is computed using a multitude of data from e-commerce, point-of-sale such as receipts, loyalty cards, multi-channel customer journey analysis, quantitative/qualitative studies, etc., which are cross-referenced and analysed via different indicators. The frequency of analysis varies. Some strategies require the processing of massive data flows on a continuous basis in order to adapt to market changes. This article provides an overview of retail initiatives to regain margins through data analysis. marketing de différentes natures
• Be able to use insights to refine product chaining insight is computed using a multitude of data from e-commerce, point-of-sale such as receipts, loyalty cards, multi-channel customer journey analysis, quantitative/qualitative studies, etc., which are cross-referenced and analysed via different indicators. The frequency of analysis varies. Some strategies require the processing of massive data flows on a continuous basis in order to adapt to market changes. This article provides an overview of retail initiatives to regain margins through data analysis. pour affiner le chaînage des produits

Going further with Mercio :

Mercio’s price optimisation software is designed to bridge the gap between marketing insights and pricing strategy. This means that each retailer can express their own business logic in a flexible and scalable solution, while benefiting from a solution developed according to the best pricing practices in retail. Discover the presentation of the Mercio platform in the Our solutions section.