A bigger obstacle than Santa himself stands in the way of national retailers this holiday shopping season. In the mad dash for consumer dollars, traditional retailers must find a way to overcome e-commerce giants such as Amazon.com.
But how? How can brick-and-mortar retailers withstand the withering competition from online retailers whose prices always seem to be headed south? And how can they accomplish this without selling their product at a loss?
The $105 billion answer – that’s the projected worth of online purchases up for grabs this holiday season – can be found with an effective Revenue Management strategy and analytics capabilities.
After losing ground in recent years to online competitors, some national retailers are winning back shoppers by implementing Revenue Management strategies that include pricing strategy, break-through analytics to drive pricing tactics, and promotions optimization. They have learned the hard way that it’s not enough to be aggressive in pricing, to simply price-match, or to discount, discount, discount.
Today’s savviest retailers are driving shoppers into their stores and to their websites by gaining a better understanding of their multi-channel pricing opportunities and constraints, by forecasting demand so that they can better manage their inventory, by monitoring competitor prices and reacting rapidly to make certain they are selling the right product at the right place at the right time, and at the right price. Optimizing price position vs. competitors should be at the core of a successful Revenue Management strategy.
For big box retailers, this means analyzing past and current consumer data and trends to provide them with the ability to predict a shopper’s next move – and price accordingly.
For their e-commerce competitors, it might just mean a lump of coal in their Christmas stockings.