How retailer can stay ahead in the competitive marketplace
As CEO of QL2, I have the pleasure of working with some of the best companies and the best people across the travel and retail industries. What I hear most from them is that competitive intelligence is the key for them to winning in their competitive marketplaces. E-commerce has changed the selling proposition dramatically over the last 25 years, and the single biggest change has been the advent of dynamic pricing.
While travel has had 20+ years to build the tools and infrastructure to compete in this environment, retail brands and manufacturers are struggling to catch up.
Brands and retailers need to take a page out of the travel playbook and adopt their tried and true methods for dynamic pricing and yield management. Following these four methods are the winning formula for brands and retailers.
- Know your competitors. Understand exactly where your potential customers are also shopping.
- Explore your competitor’s product assortment. How does it compare to yours? Who are they selling to that you are not, and why?
- Understand the pricing for every product, so you know where you are winning and losing. Watch the movement of your competitor’s pricing as you adjust your pricing. Determine if you are following the market or leading it.
- Build the ability to adjust your product allocation and pricing as often as your market requires.
With the playbook above, brands and retailers will position themselves to compete strongly in their dynamically priced marketplaces. This is a key piece to succeeding in their overall omnichannel approach, as more of the revenue begins to flow from e-commerce.
Written by: Carl Wartzack, CEO