Following up on the first article of this EuroShop blog series, I will highlight some key takeaways from my session – The NEW shopper journey: intelligent pricing in an omnichannel world – which I had the honor of co-presenting with one of our customers, Daniel Lohne Sorteberg, Price Analyst for REMA 1000, a leading Scandinavian multinational supermarket chain.
During our session, I talked about how today’s shoppers are empowered in more ways than ever before. According to Google, 82% of shoppers consult their phones on purchases they are about to make in-store and by 2021 each person will own on average 6.6 devices (source: IDC). With this changing landscape, many retailers are asking themselves what this means for their business in terms of strategies, resources and processes. Also, how does this impact their pricing strategies, such as how often should they change prices and how do they price by each channel? Retailers are not alone regarding these struggles – according to RSR, close to 40% of retailers do not believe they are sufficiently price aggressive.
If retailers try to price without a solid strategy, or without the appropriate science and data-driven technology, they will quickly kill their margins and cannibalize sales. Through Revionics Price, Promotion and Markdown Suites, we help retailers such as REMA 1000 identify which competitors really matter to your customers and for what products.
When helping retailers with their omnichannel strategy we focus on elements including a strategic competitive analysis, intelligent decisions and timely action. We define dynamic pricing as changing price at the right frequency, but timing alone does not ensure success.
Successful Dynamic Pricing:
- Is a key element of a holistic omnichannel strategy
- Allows you to price strategically against relevant competitors
- Increases speed of reaction to market
- Enables automation and streamlined pricing execution
Highlights from REMA 1000’s Part of the Presentation:
When our customer Daniel Lohne Sorteberg, Price Analyst for REMA 1000, spoke at EuroShop, he talked about the challenges they face as one of the largest grocery retail banners in Norway. Facing fierce competition in the Norwegian grocery market, REMA 1000 wanted to offer the most competitive prices in their local markets with the quickest response times.
According to Daniel, it is critical to their competitive strategy to improve dynamic pricing as they are operating in a market with everyday changing prices even during store hours. REMA 1000 have decided to adopt and will eventually implement Revionics Price and Promotion Suites, to help them overcome some of the challenges they face in today’s retail market.
By choosing Revionics solutions, Daniel and his pricing team hope to have more timely, higher quality data, better forecasting capabilities, and less deviations from planned outcomes. In addition, the solutions will allow Daniel’s team to run scenario planning to see what price changes would be effective and drive desired results – and which would not. In addition, once implemented Revionics’ SaaS solution will help automate their pricing processes.
For more insight around dynamic pricing, click here to download the EKN Research report titled: The Dynamic Pricing War: Retailers Need Answer in the Face of Extreme Competition.