Latest pricing trends to follow in the retail industry
by Jessica Miller on 5 Dec 2022 (5-minute read)
While inflation hit mid-2022, the economy was just opening up and consumers were still
ready to spend. But now that some time has passed and the rise in the cost of goods and
services has become noticeable and of course, retailers will feel the brunt of the
including surplus inventory, higher storage costs, and a decrease in revenue.
• Tailoring prices based on the product, the product segment, and the willingness to pay
way to survive and thrive in an inflationary market
• There are many popular pricing techniques you can adopt based on your product and
• Competitive pricing can increase customer acquisition for highly price-sensitive
• Optimising pricing strategy to
omnichannel shopping can help you capitalise on
the 73% of retail consumers who use multiple channels.
• Subscription pricing can help you build better customer relationships while
retention and recurring revenue.
• By personalising prices and promotions, and avoiding additional charges during
can avoid revenue loss due to cart abandonment
• According to a study by McKinsey “Retailers that take a surgical approach are
emerge with profitability and consumer relationships intact.” This includes
increases based on the product, the product segment, and the willingness to pay.
• This is where AI-based price intelligence tools come into play.
make your life
easier but also give you an edge over your competitors by helping you track
prices based on product and segment, and customers’ willingness to purchase
• The tool also tracks promotions run by your
you can plan your pricing and
promotion strategy to give your customers the best deal thereby retaining their
• Now that we’ve established how crucial your pricing strategy is going to be for
business in 2023, we’ve pulled together some latest trends that retail
employing to not just stay afloat through inflation but also acquire more
customer retention, experience, and satisfaction, and stay ahead of the
Competitive pricing for customer acquisition
59% of shoppers use their mobile devices in-store to compare costs and research deals
making competitive pricing an excellent way to beat the competition both online and
offline and ensure customers choose you over another retailer.
Competitive pricing is
you price your products based on your competitor’s prices
for similar products. This method of pricing works best for price-sensitive products
if there are products in the market that are similar to yours.
Whether you are an online retailer or a brick-and-mortar store, it is imperative that
track market movements and get real-time information on competitor prices. The
however is knowing what the competitor's prices are accurately and in real-time.
AI-driven competitor price tracking tools like pricechecker help you get this
and keep your prices competitive without compromising on your margins.
Pricing to accommodate omnichannel shopping
of retail consumers use multiple channels to shop meaning, omnichannel
here to stay which means you have to find the right pricing strategy based on your
products and customer behaviour to ensure sales, revenue, and most importantly
There are 3 different pricing strategies you can employ depending on your goal and
Omnichannel pricing: This is where your price is the same across all channels. This
best if your goal is customer acquisition and satisfaction.
Channel-specific pricing: here, your price varies depending on the channel. This
best if you believe your customers do not spend as much time researching or if
figured out the channel that works best for your business or if you want to increase
sales/profit in a certain channel.
Combination pricing: in this case, the prices of your products are the same across
channels but you push customers towards a specific channel through channel-specific
promotions, rewards, or coupons. This works best for well-established businesses
to provide a unified customer experience.
Subscription pricing to ensure retention and revenue
If you thought the subscription model works only for software and streaming
you cannot be more wrong. Over 15% of online shoppers have opted for one or
subscriptions and with the intent to purchase goods online continuing to
the pandemic, subscription-based Ecommerce can be a game changer for you if
selling that satisfies a recurrent need. This could include anything from
bread to ink cartridges and cleaning supplies!
Subscription pricing is for you if you've successfully established that the
your product is recurrent and you are looking to
Ensure customer retention
Build a better relationship with your customers
Generate recurring revenue
Gather first-hand customer data
Offer personalisations and curations
The best part of subscription pricing is being able to choose from a variety
models based on your product, customer behaviour, and business and revenue
Personalised pricing for excellent customer experience
This is where you leverage technology to offer a personalised shopping experience for
your customers. For example, if a customer has looked at a product on your website
has not purchased it, you can send them a coupon or offer a discounted price or free
shipping to encourage them to make the purchase.
While this is best suited for businesses that sell highly price-sensitive products,
also works if you’ve got a product that you know your customers cannot get enough of
once they’ve tried it. You can recognise these products based on customer reviews,
ratings, and of course recurring sales.
Personalised pricing and promotions can increase your return on investment by 5-10%
pricechecker can help you do this by tracking prices and reviews of products so can
identify the right products to deploy this pricing strategy with!
Pricing to avoid cart abandonment
80% of carts are abandoned and the big reason for abandonment is additional costs
checkouts like shipping and taxes. This is not only bad for your business in terms
revenue but can also create distrust amongst your customers because what they see is
different from what they actually pay.
More and more businesses are optimising their pricing strategy to avoid this. Some
techniques include displaying all-inclusive prices, accommodating free shipping,
upfront about shipping costs, etc. thereby improving sales and revenue.
Pricing to capitalise on holiday shopping
It’s no secret that retail shopping sees a boom during the holiday season but what
might not have known is that off-late customers are shopping ahead of the festivals
capitalise on the best deals and promotions.
To make the best of the shopping boom, you must do more than just offer promotions
the holidays and run promotions based on customer behaviour on a more regular basis
keep them shopping. Additionally, running promotions on any product (seasonal or
during the holidays can help boost sales and revenue.
Pricing intelligence software like pricechecker which is equipped with promotion tracking
software can help you know what promotions your competitors are or have been
you can plan your promotional strategy accordingly.
The bottom line is, customer behaviour is ever-evolving and it is important to know
accommodate them if you want to stay relevant and profitable.
The most efficient way to do this is by leveraging technology that will help you gain
insight into customer behaviour AND your competitors’ reaction to them.
This will not only ensure your existing customers get the best deal and continue to
choose you, but also help beat the competition by making you more attractive in the
Result : improved acquisition, better retention, and an
increase in revenue.
Pricechecker not only tracks your competitor prices, but provides
competitors’ promotions (including coupon codes and price after promotion) and promotion
history, stock status and stock history making it an all-round competitor
tool that will give you the edge you need to stay ahead of your competition this