How to Compete On Pricing and Win Against Amazon, Walmart and Target

January 22 2021 by Greg Petro

artem-beliaikin-kTd2PvtqE_o-unsplash copyGiven all we have been through in the last year, I am befuddled as to why most of the retail industry remains so staunchly stuck in its ways.  COVID gave retailers and brands not only a window to innovate, but countless examples of what would happen if they continue to keep their feet rooted in the past. Well, it’s January, and anyone with their eyes up can see that the world has completely changed. While consumers had already framed new expectations before the pandemic, the idea that they’ll somehow return to their old ways once a vaccine has been distributed is a fool's premise. Now more than ever, retailers absolutely must stop with the bad habits, and at the core of this is discounting.   

Pricing has long been considered the biggest lever for retailers when competing for market share and attracting customers, particularly as they competed with Amazon. However, COVID has fueled an enormous shift within consumer expectations, and has prioritized safety and convenience often over pricing. We’ve heard from the industry that consumers are still shopping the same way they did during the holidays, rather than looking for big post-holiday sales. And smart retailers have already started to pull back.  

As an example, while the holiday showed deep discounts early-on to incentivize consumers to start shopping early, data by Salesforce (CRM) published late last year showed that retailers started pulling back in December, with the global average discount rate dropping to 18 percent on average for the first two weeks of December down from the 28 percent average global discount rate offered on Cyber Monday.  

This was a smart move, and likely helped retailers in-line with their consumer expectations capture more revenues during the holidays.

Read the Full Article at Forbes.com if you are a subscriber or Download the PDF below.

pricing  retail pricing  Amazon  voice of the customer  Data  Target  Consumer Data  Walmart  Voice of Customer Analytics

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