Who ?
Aurélien Magnan, co-founder and associate director of Elevate (HumanSkills group).
What?
[article partenaire] A forum on how brands put data at the service of a “live” pricing strategy.
Comment? In an economic environment characterized by rising inflation, companies are facing complex pricing challenges. The impact of inflation on production costs and consumer buying behavior requires a major reassessment of pricing strategies. Pricing decisions now require in-depth cost analysis, a thorough understanding of consumer trends and market behaviors, and nimble adaptation to economic fluctuations.
Meet the challenges of inflation with a data-driven pricing strategy
In this complex context, the increased use of data becomes central. A data-driven pricing strategy is needed to support consumers in an inflationary age, defend their pricing image, maintain their profitability, while remaining competitive.
This can go through a detailed analysis of price and cost trends. To remain competitive in the marketplace, decision makers need to be able to better capture price changes in the marketplace, as well as changes in production costs. This in-depth knowledge allows you to adjust prices in real time, to develop your competitiveness. Smart labels are then used in chain stores such as carrefour OR Leroy Merlin. They interact with inventory and pricing management software and update prices directly, thus providing the manager with a consistent pricing picture with in-store promotional campaigns.
The data can also optimize margins, arbitrate the margin/volume rate debate, and help measure price elasticity.
A data-driven pricing strategy allows you to implement dynamic pricing, based on a combination of complementary factors: demand, supply, inventory, and sometimes individual customer characteristics.
Increase customer value with a customized pricing strategy
Customizing your pricing strategy increases customer value and drives customer loyalty. Rather than adopting a one-size-fits-all approach to pricing, organizations need to recognize that every customer is unique and that their needs, preferences and financial capabilities differ.
The data enables precise segmentation of consumers based on profile, purchasing behavior and spending potential. This segmentation allows marketing decision-makers to come up with personalized offers, adapted to the needs and financial capabilities of each segment. By adopting a personalized approach to pricing, companies can create a more relevant and engaging customer experience: targeted discounts for a customer’s favorite products, bundled offers that match her interests, or flexible payment options. Thereby Starbucks offers personalized discounts and rewards to members of its loyalty program. Customers receive special offers based on their shopping habits, promotions on their favorite drinks or on products similar to those they have already purchased. The application Lidl which also allows you to benefit from personalized promotions on products regularly purchased by the consumer.
Integrate sustainability into your pricing strategy
In addition to inflation, the climate imperative is also forcing itself on companies’ agendas and can pose both a threat and an opportunity depending on whether or not they integrate environmental and social issues into their pricing policies.
This, not only to meet changing consumer expectations, but also to contribute significantly to a more sustainable future.
Data can help companies align their pricing strategy with corporate sustainability goals.
Therefore, evaluating the environmental impact of a company’s activities (production, distribution, communication, etc.) requires rigorous measurement of carbon emissions (origin of a product, mode of transport, production method, etc.).
By promoting responsible choices, organizations can contribute to a more sustainable future while meeting rising consumer expectations.
It can also involve raising consumer awareness through transparent pricing, communicating the environmental impact of products, and highlighting their company’s sustainability efforts.
More and more fashion brands are entering the second-hand market Eagle under its “second wind” brand. The luxury sector is particularly illustrated in this area: Alexander Mcqueen but also Gucci have partnered with Veepee or Vestiaire Collective to promote second-hand.
Proof that climate and customer issues are just two sides of the same coin?
