Optimizing Profits With Dynamic Pricing
It’s no secret that consumers are on the hunt for the best prices, but over-discounting to intrigue these shoppers can cost a retailer greatly. Finding the balance between offering low prices an protecting margins can be difficult, and testing prices can involve expensive trial and error.
Luckily, grocers can invest in dynamic pricing tools that automatically ensure their private label brands are set at an optimal price for both the shopper and the bottom-line. Dynamic pricing tools consider a wide variety of factors including market trends, product availability and competitor pricing.
There is a common misconception among consumers that dynamic pricing always leads to higher prices. This belief is a myth because these tools strive to strike the right balance to manage supply and demand while keeping customers happy.
Dynamic pricing can be applied to electronic shelf labels or it can be used to inspire optimal changes for physical price tags. Regardless of how a grocer chooses to implement dynamic pricing, this tool can improve long-term profitability without ostracizing price-wary shoppers.
Driving Loyalty With Personalized Recommendations
One of the best ways to promote the private label is with personalized recommendations. Grocers should take the time to review customer data and understand what items their shoppers are most interested in.
Once identified, grocers can share personalized recommendations via the shopper’s preferred touchpoint whether it’s email, SMS or an in-store application. These recommendations can highlight private label equivalents to products the shopper already buys, or other store brand products within the product categories the shopper prefers.
Personalized recommendations showcase a level of understanding about the shopper’s needs and preferences which is especially important as they struggle to fill their cart amid rising prices. This gesture can drive conversions and foster loyalty for the grocer’s own brand.