The Relentless Quest For Low Prices
According to PricewaterhouseCoopers’ latest report, price is the No. 1 factor that motivates purchases. Shoppers are relentless in their search for affordability, scouring the web to research and compare prices. Meanwhile, competitive pricing is unsustainable long-term as retailers compete with the flurry of new entrants in the onslaught of e-commerce disruption. Our recent retail survey found 64% of shoppers make their shopping decisions based on prices, compared to 39% of respondents whose shopping decisions are based on brands. With that in mind, omnichannel retailers are leveraging sophisticated software for dynamic pricing models, which allow real-time price adjustments based on customer loyalty, shipping costs and inventory updates. Dynamic pricing also allows targeted promotions for certain items based on what is and is not selling to increase profitability. In fact, to compete with online competitors who continually fine-tune online pricing models, many retailers adjusted in-store prices during the 2016 holiday shopping season. Dynamic pricing models are especially beneficial to omnichannel retailers. Read more at Forbes.
