Price Image is a measurement of the value promise a retailer makes to its customers. It is the new metric for retailers and manufacturers to measure and manage the effectiveness of their pricing. It’s how customers perceive a retailer’s pricing, and Price Image Management is how a retailer chooses to position themselves with customers, as related to the price consumers expect to pay.
Many retailers don’t know what their Price Image in the market is. With deep discounters aggressively expanding market share, retailers battling to retain their customers with promotions, and increasing price transparency, the retail marketplace is in the midst of a price war. Trying to follow competitors’ pricing is both ineffective and inefficient. Customers don’t compare prices on all of a store’s items, and different items have different importance to different people at different times. Defining what Price Image a retailer wants to establish in the market, understanding how to achieve that Price Image with customers, and then aligning it with a retailer’s financial objectives, are critical.
IDC recently positioned Engage3 as a leader in its MarketScape Vendor Analysis Report for changing the game and leading the next frontier in strategic pricing solutions.
“Engage3 flips the price optimization paradigm on its head — optimizing price image, not prices, to achieve desired outcomes,” said Mark Thomason, Research Director for Digital Business Models and Monetization at IDC. “With deep pricing–focused artificial intelligence and machine learning assets, Engage3 is focused on using science to maximize business outcomes constrained by shopper perception of pricing through predictive modeling of Price Image,” he added.
“It’s been a challenge for retailers to craft a holistic strategy for pricing. Using Price Image as the new metric instead of relying on Price Index will help retailers lead with disruptive pricing in their markets,” said Ken Ouimet, Engage3 Founder and CEO. “Calculating your Price Image is the first step in making the right price investments to make your customers and your investors happy,” he added.
You can request a copy of the IDC white paper on Price Image Management here.