Control your distribution and optimize your prices: towards an omnichannel strategy

Mastering omnichannel distribution, both online and in-store, is a strategic challenge for all brands. This is how they can preserve their brand image, create a quality shopping experience and, ultimately, increase their sales. To meet this challenge in the age of omnichannel, these brands must be able to collect reliable and usable data at all levels of contact: in stores, on reseller sites, search engines or price comparison sites. It is now an essential point in their marketing strategies in order to quickly identify areas for improvement and make the right strategic decisions.

Control your distribution at the point of sale

Brands know it well: linear readings are essential to optimize in-store performance, carefully monitor stock, traffic, merchandising, layout and pricing. In particular, they allow sales managers and brand managers to identify areas for improvement to satisfy customers and refine strategies. The integration of technologies such as mobile apps, AI and IoT (Internet of Things), combined with standardized training and collection procedures, make these audits more efficient than in the past, with 100% manual linear readings being particularly tedious. This helps build a data-driven culture that supports operational excellence and continuous improvement.

Mastering your digital distribution and digital shelf

Mastering the Digital Shelf, the online equivalent of in-store shelves, has become essential for brands looking to optimize their online visibility and attractiveness. Online intelligence plays a key role in monitoring pricing, availability, promotions, and product presentation, allowing brands to stay competitive and adjust their strategy in real-time against competitors. With specialized tools like Price Observatory, they can keep up with market trends and improve their digital positioning.

Harmonize physical and digital strategies

The control of distribution therefore requires omnichannelity. It represents a strategic approach to unify the customer experience by harmonizing physical and digital channels. This approach therefore consists of creating a synergy between the different points of contact with the consumer, whether it is a physical store, a website, a mobile application or social networks. The goal is to provide a seamless and personalized customer experience, where information and actions taken on one channel are recognized and acted upon on all others. By offering a unified view of the customer relationship, omnichannel improves customer satisfaction, strengthens loyalty and optimizes sales performance.

What solutions can be found to meet the challenge of omnichannel distribution?

The importance of in-store and online shelf surveys and thus having a 360° view is now obvious. But what solutions can be adopted to simplify this time-consuming data collection which, if done poorly, is a source of errors? To optimize this process, solutions such as Easy picky and Price Observatory are particularly effective. Easy picky Automates Shelf readings in stores thanks to scanning tools embedding an Image Recognition solution, which works simply by activating the camera of a smartphone or tablet and walking through the aisles of a store. Price Observatory ensures a Comprehensive online monitoring. It records prices, stocks, catalogues, images used, customer reviews and product ratings in real time. It monitors the greymarket, buy box holdings on marketplaces, market trends and competing products. The solution makes it possible, thanks to high-performance product matching algorithms, to monitor price changes in real time in order to better advise retailers in their online sales and pricing strategy while maintaining a good brand image. By combining these two tools, brands benefit from a reliable and up-to-date source of data in real time, allowing them to make informed decisions and strengthen their competitiveness both online and in-store.

How EasyPicky simplifies field data collection for Henkel

The sales forces of Henkel Home Care division were responsible for manually filling out large Excel spreadsheets during field surveys, which was tedious, time-consuming, error-prone and could only be done a few times a year. Negotiations with department managers were hampered by the lack of KPIs, affecting the quality and effectiveness of discussions. Sales and marketing departments had a limited vision of the field, only receiving ad hoc data during survey campaigns, which made it difficult to accurately evaluate strategies. EasyPicky has revolutionized the collection and analysis of field data for Henkel's sales force. Thanks to its Image Recognition solution, they can take exhaustive readings at each visit, simply by activating the camera of a tablet, even in 100% offline mode.

Industry leaders now benefit from instant analysis of the data collected, strengthening their negotiating power with customers with reliable and measurable information in real time. Sales and marketing departments also have immediate access to field data, automatically consolidated in Henkel's CRM, giving them a clear and constantly updated view of point-of-sale performance to quickly adjust sales and marketing strategies.

The Sucess Story Henkel & Easypicky

How Price Observatory provides Schneider Electric with clear visibility into the prices of its dealers and competitors

Schneider Electric is a multinational company with several divisions and an operational structure for each country. During the CoVID crisis, the BtoC division experienced very strong growth due to the rise of the Do It Yourself trend among consumers. Their sales to individuals, via e-tailers and specialist stores have increased sharply and Schneider Electric needed reliable information on online prices. However, the group was, at the time, totally blind on this point. With Price Observatory, they now have clear visibility into the pricing of their resellers and competitors, allowing them to make informed decisions about their own pricing. Data scrolling data guides countries in setting their prices, so that everyone knows how to adapt the price structure to the specificity of the country. Price Observatory's solution also guides countries on the Go To Market, as products are marketed through several distribution channels: B to B and B to C (including e-commerce).

The Sucess Story Schneider Electric & Price Observatory

Towards a 360° vision

The rise of omnichannel distribution and the increasing complexity of consumer touchpoints require new strategies and data collection tools to ensure optimal visibility and competitiveness. Solutions such as EasyPicky and Price Observatory provide brands with concrete answers to these challenges, by facilitating field surveys and offering real-time 360° online monitoring. Thanks to these solutions, brands now have a complete and accurate view of their performance, allowing them to adjust their strategies in a reactive manner and optimize their brand image and sales.

Brands: how to better control your Digital Shelf with online monitoring?

What is the Digital Shelf?

The Digital Shelf is the online equivalent of the shelves in physical stores.

It's the place where customers search, discover and buy products online, whether it's on the retailer's website or mobile app, or on another retailer's website or marketplace.

Just like in a physical store, customers want to be able to access well-stocked shelves, while remaining clear and organized enough, and have the information they need to make a purchase with confidence.

The digital shelf should allow customers to search for information about a product. Search results pages and product category pages are entry points for online customers and should contain a lot of information: images, videos, description, pricing, availability, variants and options, ratings, and customer reviews. The pages of each product should also provide all these information.

Supermarkets and brick-and-mortar stores have mastered the art of creating a quality in-store shopping experience. Thanks to merchandising, they know how to create attractive window displays, highlight leader products or promotions aisle head display offers, arrange the shelves in such a way as to highlight products with higher margins, offer a fluid in-store experience to the consumer and encourage them to buy by creating pre-defined universes and consumer journeys. They also offer impulse purchases near the checkouts, and offer immediate assistance on the shelves thanks to salespeople who are available for any questions.

Online, customers are looking for a similar experience: they want to easily find the product they are looking for using categories, keywords, etc., to get detailed information about each product, to have access to useful usage tips, recommendations and reviews from other consumers to be reassured about their choice, they also want to be directed to other similar products or additonal ...

The Digital Shelf: more and more points of contact

The digital shelf include all the touchpoints that consumers use to research, evaluate, and compare a product with other brands, and then make a purchase. With the development of digital technology, these touchpoints are multiplying, making the consumer buying journey increasingly complex. To manage this digital space well, it is crucial to ensure that products are easy to find, well presented, and accompanied by all the necessary information to encourage purchase.

Online monitoring, an essential tool for mastering your
digital shelf

Online monitoring consists of systematically monitoring how your products are presented on your retailers' sites, on marketplaces and on the sites of other unknown retailers. This includes price monitoring (tracking prices, promotions, price changes), the way your SKUs are presented on product sheets (images used, description, presentation) as well as monitoring market trends, monitoring competitor SKUs, customer reviews and ratings on your products, and the promotional activities of other brands. The goal is to collect relevant data to adjust your online distribution strategy and stay competitive.

Online monitoring is particularly important for:

Monitor the competition: Observing competitors' strategies, their prices, promotions, and how they present their products can provide valuable insights to adjust one's own strategy
Adjust Prices: Stay competitive by adapting prices in real-time.
Identify Opportunities: Detect opportune times to launch promotions or discounts.
Adapt Quickly: React quickly to price changes and new offers from competitors.

For effective price intelligence, companies use price intelligence software such as Price Observatory that aggregates this data in real time via scraping technologies and APIs to extract data directly from competing websites.

Competitive intelligence is not limited to price monitoring, other factors are also important to master your Digital Shelf.

Reputation management: Tracking customer reviews and feedback helps to react quickly to negative reviews and improve customer satisfaction.
SEO optimization: Online intelligence helps to understand which keywords and phrases are most searched for by consumers, which helps optimize content to improve search engine optimization (SEO).

Essential online monitoring tools to master your Digital Shelf

To carry out effective online monitoring, brands can use various technological tools:

Google Alerts: To receive notifications about brand or product mentions.
Hootsuite: To manage and monitor social networks.
Semrush: To analyze competitors' SEO and content strategies.
Brandwatch: For an in-depth analysis of social media mentions and sentiments.
Price Observatory: To monitor prices, reviews, promos, stock on various e-commerce platforms (e-commerce sites and marketplaces)

Putting it into practice

Step 1: Define Intelligence Objectives
Identify the aspects of the Digital Shelf that you want to improve, such as product visibility, access to offers, content quality, pricing, or reputation management.
Step 2: Choose the Right Tools
Select the monitoring tools that fit your goals and budget.
Step 3: Collect and Analyze Data
Set up regular alerts and reports to monitor relevant information. Analyze this data to identify trends and opportunities for improvement.
Step 4: Implement Corrective Actions
Make the necessary changes to your digital shelf strategy based on insights gained from online monitoring.
Step 5: Evaluate Results
Measure the impact of the changes made and adjust your strategy accordingly for continuous improvement.

Conclusion

Mastering your Digital Shelf is essential for brands that want to succeed in today's competitive digital landscape. Online intelligence provides an effective way to monitor and optimize the various aspects of the digital presence of products. By taking a proactive approach and using the right tools, brands can improve their visibility, attract more customers, and ultimately increase sales. For personalized advice on the pricing of your products, do not hesitate to contact our team of experts on Price Observatory website. Contact us for a demo, a real-world test or information

Omnibus EU Directive impact on Pricing Strategies

The Omnibus Directive : a term that resonates more and more in e-commerce circles, but despite its importance, many retailers and manufacturers do not know it precisely or have doubts about how to take it into account in their pricing strategy.

In this article, we'll dive into the world of the Omnibus Directive, explaining its background, purpose, and providing practical tips for staying compliant.

What is the Omnibus Directive?

The Omnibus Directive (EU) 2019/2161 is a European regulation aimed at modernising and harmonising consumer protection rules in the European Union in the digital and e-commerce age. However, it applies to both physical warehouse and online businesses.

The new rules of the Omnibus Directive came into force on 28 May 2022, as specified in Article 10 of Ordinance No. 2021-1734.

Its objective is to ensure greater fairness and transparency regarding the commercial and pricing practices of merchants, retailers and marketplaces.

The main points of the Omnibus Directive concerning Pricing

1. 1. Price Transparency and Total Price Display

One of the main components of the Omnibus Directive concerns price transparency and the obligation to display the Total Price of a product or service.
The Total Price must be displayed at the beginning of the purchase process and must include all taxes, surcharges and shipping charges.

2. Transparency Regarding Promotions, Strikethrough Prices and Price Changes

In addition, in the context of a price reduction, a promotion, or sales, the Omnibus Directive makes it mandatory, alongside the updated price, to display the Reference Price, i.e. the lowest price offered in the last 30 days. The purpose of this regulation is to allow customers to clearly assess the discount made and to strengthen confidence in the accuracy of the information provided.

Professionals have the freedom to choose how to display the discount (absolute value, percentage, strikethrough price, etc.).

NB: There are two exceptions to this rule: perishable goods and progressive Early Booking for travel, for example.

3. Transparency Regarding Personalized Prices

The personalized prices applied by certain sites based on consumers' purchasing behavior should be clearly displayed. For example, offers based on recent purchase history, such as Amazon's with its recommended product carousel, should clearly state the original price, as well as the percentage and amount of the discount.

Risks of sanctions

Violators of these rules face up to two years in prison and a fine of €300,000 for misleading commercial practices. The DGCCRF will be responsible for ensuring compliance with these rules during its inspections, in particular during large-scale price reduction operations such as sales or "Black Friday".

Best Practices for Brands and Retailers

Now that we have a better understanding of what the Omnibus Directive means in terms of pricing, let's take a look at some best practices that brands and e-tailers can adopt to comply with this regulation while offering an optimal customer experience.

1. Price Transparency from the Start

Make sure that all pricing information is clearly displayed at the beginning of the purchase process, including taxes and shipping costs. Avoid hidden fees that might surprise customers at checkout

2. Clear Return & Refund Policy

Set up a transparent and easily accessible return and refund policy. Consumers need to know exactly what they can expect in terms of returns and refunds if something goes wrong with their purchase.

3. Verified Reviews

Be sure to only submit customer ratings and reviews that are verified by a reliable system to ensure that the reviews posted are from consumers who have used or purchased the products. Control and verification procedures must also be displayed and easily accessible by the consumer.

4. Protection of Personal Data

Make sure your website complies with GDPR data protection regulations. Obtain explicit consent from users to collect and process their personal data, and ensure that robust security measures are in place to protect that data from breaches.

5. Transparent Communication with Customers

Be transparent in your communications with customers. Provide clear information about the products and services you offer, and respond quickly and effectively to any questions or concerns raised by customers

What are the impacts on Pricing strategies and Dynamic Pricing tools?

1. Use Price Intelligence Tools

Price monitoring tools are used to monitor the prices charged by competitors and/or resellers and to monitor their compliance with the rules as well as market fluctuations. By using these tools strategically, businesses can adjust their own prices based on market trends while remaining competitive.

2. Implement a compliant Repricing Strategy

Repricing, or dynamic price adjustment, is a common practice to stay competitive in a fast-paced business environment. However, it is important to ensure that price adjustments comply with the regulations for advertising price reductions. By using intelligent algorithms and taking into account price intelligence data, companies can automate the repricing process while ensuring compliance with the Omnibus Directive.

Brands, on the other hand, can ensure that their resellers comply with its rules.

3. Ensuring Transparency and Integrity

In all pricing and repricing actions, transparency and integrity must be prioritized. Consumers must be able to trust the prices displayed and be assured that they are not victims of misleading marketing practices. By complying with regulations and taking an ethical approach to pricing, companies can build consumer trust and ensure their reputation in the marketplace.

The benefits of a more transparent pricing strategy

An Omnibus Pricing Strategy has a multitude of benefits for e-commerce, including :

Improved price transparency and reliability : By accurately displaying discounts and complying with regulations, companies increase transparency in their pricing practices.
Increased customer trust and satisfaction : Clear and honest pricing fosters customer trust, which can lead to better customer satisfaction and retention.
Retention and acquisition of new customers : Ethical and transparent pricing can attract new customers while retaining existing ones, due to the increased trust it generates.
Avoidance of deceptive pricing practices : By complying with the Omnibus Directive, online retailers avoid misleading practices that could damage their reputation.
Promotion of fair competition : Fair pricing practices promote healthy and fair competition in the marketplace.
Highlighting quality and value : By presenting prices based on real data, companies emphasize the quality and value of their products or services.
Encouraging ethical practices : Pricing in line with the Omnibus Directive encourages companies to adopt ethical and transparent pricing practices.
Contributions to sustainable growth : By building trusting relationships with customers and promoting fair competition, companies can foster sustainable business growth.

At Price Observatory, we offer advanced solutions for e-tailers and brands that allow you to adapt to the Omnibus Directive, ensuring your company's compliance while applying an optimized pricing strategy.

E-merchants, stay competitive while complying with price regulations in an efficient way, thanks to our Dynamic Pricing module from Price Observatory

Brands and Manufacturers, monitor your resellers' promotional practices with our powerful, reliable and easily accessible price monitoring tools

For personalized advice on the pricing of your products and the Omnibus Regulations, do not hesitate to contact our team of experts on our Price Observatory website. Contact us for a demo, a real-life test or information

Like Apple, test the pricing strategy of the decoy effect

In the complex arena of e-commerce and web marketing, there is a subtle but incredibly effective strategy: the lure effect or the lure of price. This pricing technique is based on the deliberate addition of a significantly less attractive option among the alternatives offered, with the aim of making the other options more attractive by comparison. It is a game of mirrors where consumers' choices are distorted by the presence of a clearly less advantageous option.

In this article, we explain how it works and how to use it well through concrete examples.

Some brands, such as Apple, Spotify, Pathé... know how to use this effective technique in a subtle way to maximize their profits while respecting their consumers.

1/ Manipulate consumers by adding a decoy price option

The decoy effect cleverly exploits certain flaws in our cognitive psychology. When we are faced with several options, our brains naturally look for points of comparison to assess their respective value.

Adding a significantly more expensive option creates a benchmark that influences our perception of what is reasonable and affordable. It's as if this extravagant option acts as a yardstick, implicitly determining what is acceptable in terms of price for a given product.

This is because consumers tend to change their shopping preferences when they are offered a third option. This means that if the customer clearly prefers option A, which is cheaper than option C, he can change his mind if he is offered another option B in the meantime, between A and C in terms of price but significantly less advantageous than C. This effect has been studied in neuromarketing as one of the most effective cognitive biases to apply in e-commerce.

2/ Professor Dan Ariely's experience about the decoy price effect

In his book "Previsibly Irrational," behavioral economist and professor Dan Ariely demonstrates how a major magazine used this technique to increase its subscription sales.

Consumers were offered three types of magazine subscriptions:

An exclusively online subscription for €59
A paper subscription only for €125
A subscription combining online access and paper format, also priced at €125

At first glance, Option 2 seems like an aberration. Why opt for a paper-only subscription at the same price as an offer that includes both paper and online access?

Faced with these 3 options, 16% of consumers chose option 1 at €59 and 84% chose option 3 at €125; Not surprisingly, none chose option 2.

However, the real revelation of this experiment appears when the decoy price is removed from the equation. When the latter option is removed, consumer preferences often change significantly. What was once considered a value proposition suddenly becomes less appealing, while initially overlooked options suddenly take on prominence.

Faced with only 2 options, 68% of consumers chose option 1 at €59 and 32% chose option 2 at €125.

It is therefore clear that the intermediate option was not superfluous; it made option 3 more attractive to consumers.

3/ Decoy Price examples from everyday life

An obvious example of the decoy effect is the packet of popcorn or candy at the movies.

When there are only two options, small or large package, the customer will conclude that the large package is more expensive and they don't want to eat as much popcorn. He will therefore buy according to his needs.

Small package → 3€ Large package → 7€

However, by offering a third prize, the decision changes. What for?

Small package → 3€ Medium package → 6,50€ Large package → 7€

The new price, the lure, will trick consumers into choosing the most expensive product, when they don't need it, because they feel like they 're getting a good deal and making a better purchase. This strategy is part of psychological pricing, because it is based on the interpretation of prices that buyers make, rather than on the real value of the products

4/ Which products does the Decoy Price Effect work with?

The decoy effect is effective with:

Very similar products but with slight differences (level of quality, manufacturing process, quantity, etc.)
Services, especially online (software subscriptions, online training, music streaming services, cloud space acquisition, online newspapers and magazines, etc.)

5/ What are the techniques to make the Decoy Price effect work?

Use an unattractive lure to convince buyers to choose the most attractive option for you.
Place the decoy next to the item you're looking to sell. This is simple in the case of e-commerce since all you have to do is display the different prices on the same landing page.
Offer three options, no more. Offering more options slows down the decision-making process too much.
Before using the decoy effect, review your pricing strategy and identify the products suitable for this decoy effect technique .
Monitor competitors ' prices and see if they employ psychological pricing in order to anticipate their movements and optimize your profits. Price Observatory allows you to monitor your competitors' pricing strategies in real time.
Discover the benefits for e-merchants
Consult the brochure of features for e-merchants.

6/ The risk with the misuse of the Decoy Price pricing technique

The main risk with this pricing technique is that buyers become aware of the scheme. This can damage brand image and cause the consumer to abandon their purchase. This technique should therefore be used with caution and fairness while respecting the consumer. For example, by offering an intermediate option that is clearly less advantageous, but not completely absurd either

In conclusion

The decoy effect is much more than just a marketing trick. It is a powerful tool that shapes our perceptions and influences our purchasing behaviors in ways that are often unsuspected. Understanding how price lure influences our decisions can allow e-tailers to design more effective pricing strategies and maximize sales, while respecting consumers and avoiding overly underhanded and manipulative marketing tactics.

For personalized advice on the pricing of your products, do not hesitate to contact our team of experts on our Price Observatory website. Contact us for a demo, a real-life test or information