The explosive growth in online shopping has resulted in increased Internet price transparency: recent data from The Centre For Retail Research forecasts that online sales in Europe will grow by 18% to £132.2 billion in 2014.
As more and more shoppers become adept at using technology to hunt for the best value deals, ensuring you are competitive on price is one of the biggest challenges facing today’s multichannel retailer. The importance of being price competitive is further highlighted in a recent study conducted by Profitero, which reveals that Amazon.com is making up to 2.5 million price changes every day.
With Forrester predicting that dynamic pricing is one of the key activities for retailers to engage in if they are to maintain and grow market share in 2014, Profitero is excited to be partnering with Blue Yonder. Profitero’s pricing intelligence solution provides crucial insights into competitor prices and promotions while Blue Yonder’s Predictive Analytics Suite enables customers to adjust their prices in real time, according to dynamic market events.
By incorporating Profitero's price intelligence data into Blue Yonder's Predictive Analytics solution, retailers will now have access to the most accurate pricing insights to support more effective decision making – helping retailers better understand how they can compete and win in today’s fast-moving world of dynamic pricing.
Blue Yonder is already successfully enabling dynamic pricing for Otto Group, the world’s second largest multichannel retailer. Otto optimises its prices daily, and sometimes more frequently, with impressive results.
In a dynamic pricing pilot, the retailer was shown to have increased sales by 9%, turnover by more than 6% and profit by 5%. As a result, optimised pricing has now been rolled out across the entire product range.
As more and more retailers realise the benefits of dynamic pricing to maximise profit margins and revenue, we're likely to see many more retailers experiment and include dynamic pricing in their strategy in 2014.
To find out more about how Profitero and Blue Yonder can deliver the most accurate pricing insights to deliver more effective decision making and maximise profits, email us at firstname.lastname@example.org or visit www.profitero.com.