A strategic alliance formed last week between Revionics, a leading provider of End-to-End Merchandise Optimization solutions, and Nielsen Holdings, a leading global provider of information and insights into what consumers watch and buy, will recommend optimum price points for retailers and address price elasticity issues in the market.
Karen Dutch, Senior Vice President of Marketing for Revionics, told Loyalty 360 that this new strategic alliance will better inform retailers about precise pricing and let them know the competitive position of their prices in relation to the market, what profit opportunities exist with their pricing strategies, and whether their current strategies are growing market share.
Through the alliance, Nielsen will provide Revionics with its comprehensive Nielsen Pricing Insights, which provides more granular information to show specific price points that consumers are paying and the volume sold at those price points in the competitive marketplace. Revionics Price Optimization integrates Nielsen Pricing Insights to appropriately weigh the importance of the individual prices along with other optimization engines and business rules. Revionics Price Optimization infused with Nielsen Pricing Insights will allow retailers to adapt to marketplace changes quickly and stay more competitive.
“At the core of the alliance is we will have a joint solution and joint customers,” Dutch said. “It gives us a strong basis to work with. It’s a combination of pricing insights and a granular view of price points shoppers are exposed to. It will give retailers a deeper view on competitive prices in their local markets. We consider ourselves a third-generation optimization solution.”
So much retail data doesn’t offer real insights as to what shoppers are seeing “outside of your stores,” Dutch explained. “This will offer a much richer view and we will be able to make recommendations based on our insights.”
This joint solution will have a “huge positive impact” on shoppers, Dutch said.
“It’s all about understanding the shopper, and a certain behavior,” she said. “Regarding customer loyalty, we think loyalty is king. Retailers need to think about how you create more loyalty with your shoppers. Getting pricing right and consistently across channels is one way. Also, how do you create that two-way dialogue with your customers to create compelling offers? This allows retailers a deeper perspective of price points they’re seeing in the market.”
What’s more, Dutch said it allows retailer to weigh many different price points that give them an additional view of the marketplace.
“It’s also helps retailers understand price elasticity in the market,” Dutch said, “as to a change in demand relative to a change in price. It lets you incorporate all of this information into your pricing decisions. There is a lot of opportunity with a richer, more robust view of the local market. Sometimes it’s hard to understand who your competitors are in a local market. Regarding priorities for retailers, if price isn’t No. 1, it’s in the Top 2. This will have a huge impact on our clients.”
Dutch said additional solutions will be available in 2014.