Sales. Deals. Discounts. Price Points. Value. We are always shopping, always looking for the best price, the best deal. But, have you ever wondered who decides pricing?
Though the 2018 holiday sales in the US saw a decline in spending, there still remains a whopping 84% of people shopping at any time, with the majority using their smartphones first. Navigating six categories of brands, services, and products can be overwhelming, and though most know exactly what they want to buy, they can still be swayed. We can still be swayed.
Research of a product often begins on a smartphone and savvy marketers know that is the place discover what it is shoppers are looking for
and how best to help them find it.
The “I”s Have it in Shopping and Search
The nature of shopping has morphed from the general to the specific. More and more shoppers are using natural language in their research and over 60% use “I” in their searches. The closer marketers can make their key words and phrases to natural language, the more likely shoppers’ research will bring them directly to their business. Consider how often, when we shop for travel discounts, we might say: “budget airfare” or “budget and pet friendly hotels”.
No matter what you search for, or how you search for it, there still is that one person who isn’t a marketer. And it’s from their analysis of shopping habits, consumer insights, and market trends that the prices for products and services are set.
The Path to Pricing
Between 10 and 15 years ago, prices were set by salespeople or marketers as part of their overall responsibilities. But, today, due to a number of new pricing tools and technologies, it has become a separate job in its own right. A Deloitte survey
offers deep insights into the path to pricing, but here are a few points to consider if you are considering becoming a Pricing Analyst.
- Educational backgrounds are as basic as business, marketing, and finance and as diverse as education, hospitality, and auto mechanics.
- Analytical skills
- Market Research
Ultimately, the goal is to make sure a product or service is set at its best price. This is done by researching industry standards, competitors’ prices and their strategies, as well as market trends among consumers by:
- Being proactive in communicating project objectives, metrics, barriers, status, and results to every element of the organization
- Identifying issues and creating solutions that allow for effective price measurements.Identifying and implementing improvement projects for pricing at a strategic level.
- Use data to create various graphs and charts to determine if the market can bear higher rates or if they need to be lowered. This in turn drives a company’s decision of whether or not to launch new products or services.
Analysts must take into consideration not only what the market will bear, but the costs associated with bringing the product to market. They’ll look at each point along the way such as research and development, manufacturing, packaging, shipping, and finally the cost of marketing the product to consumers.
How to Find, Keep, and Motivate Pricing Professionals
For the right person with the right skill set, the role of a Pricing Analyst is the perfect stepping stone to other opportunities. For businesses, how to find and retain talent can be found outside of first thought of avenues such as finance.
- Consider recruiting talent from a diversity of educational and professional backgrounds.
- Promote the idea pricing jobs can be a satisfying career, but can lead to other opportunities as well.
- Rotate people in and out of pricing fields to gain experience.
When asked about their biggest challenge, over 30% of businesses said “Data availability and reliability” were their biggest challenge. Are you ready for unique field within the Data & Analytics?
If you think Pricing Analyst might be right for you or If you’re interested in Big Data & Analytics, we may have a role for you. We specialize in Junior and Senior roles. Check out our current vacancies
or contact one of our recruitment consultants to learn more.
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