When it comes to performance metrics, incremental lift is often considered by many to be the key to the kingdom.
The ability to prove the effectiveness of a specific promotion can earn marketing and advertising teams access to increased budgets, greater resources, or decision making power within their organizations. But one of the deciding factors in lift is promotional pricing, and offering the right price at the right time requires dedicated analysis of huge quantities of data from a variety of sources. That’s where price optimization tools and software come into play; here’s how price optimization works to drive lift and a look at seven solutions companies can consider.
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What Is Sales Lift?
Sales lift, also known as incremental lift, is a measure of the effectiveness of a company’s promotional pricing, advertising campaigns, or marketing efforts. In order to calculate sales lift, companies compare the incremental increase in sales during a set promotional period to the baseline sales that would have predictably occurred within the same timeframe without the promotion. The difference between actual sales (accomplished during the promotional period) and baseline sales (expected sales without the promotion) equals sales lift.
Why Is Sales Lift Important?
Measuring sales lift is important because it helps organizations understand and prove the impact of their advertising and marketing investments. Crunching the numbers allows companies to see the actual results produced by any given campaign, empowering advertising and marketing leaders to improve their strategies and optimize pricing to yield improved results over time.
What Role Does Price Optimization Play In Sales Lift?
Although the basic formula is simple, there are countless elements that can contribute to sales lift calculations. One of the most important variables is price, which defines the specific value of each promotional offer or discount. As sales teams begin to analyze lift, pulling the levers of price can help refine promotional strategies and see improved results. That’s because offering consumers the right promotion at the right time can make or break their decision to buy. Instead of stabbing in the dark to pull those levers, companies can use pricing optimization software to make sure they are matching consumers with the perfect promotions to drive lift as high as possible.
7 Price Optimization Tools That Drive Sales Lift
Let’s look at how seven leading sales analytics and price optimization tools help companies drive lift:
wappier’s AI-powered pricing optimization tools allow companies to model, predict, and optimize their efforts based on billions of real-time data facts each day. The platform is powered by a proprietary AI engine that analyzes huge quantities of data to automatically optimize pricing at precisely the right moment, keeping customers engaged and improving both time-to-sale and overall sales lift. Our Global Pricing tool auto-adjusts the optimal price for each product in every country, while Promotional Pricing uses machine learning to auto-adjust the next best offer at the optimal moment in an individual consumer’s journey based on their unique price sensitivity and likelihood to purchase. Price optimization capabilities like these are how wappier helps mobile developers drive incremental sales lift across all their promotional efforts.
Competera gives marketers a 360-degree view of their markets with fresh data updated every two hours. Retail and e-commerce brands can build their own rules to drive pricing automations, or lean on demand-based price recommendations and real-time repricing suggestions. With a suite of tools powered by machine learning technology and trained to recognize both price-related and other factors, Competera promises to reduce repricing time by 50%, increase revenue by 8%, and increase profit margin by 6%.
As a mobile-focused price optimization tool for in-app purchases, Mage uses a proprietary SDK to analyze users’ purchase behavior and optimize pricing in over 170 countries. By automating pricing optimization, Mage allows mobile app publishers to discover what users are willing to pay. This approach promises to eliminate the manual effort involved with analyzing competitor pricing or A/B testing promotional campaigns. Mage provides automated recommendations for pricing adjustments specific to every IAP you offer in every country around the world, iterating constantly to improve lift in real time.
#4: Microsoft Power BI
Microsoft Power BI offers companies sales analytics and data visualization tools they can use to better understand their effectiveness and improve their strategies over time. The software’s AI capabilities power a range of pre-built and customizable visualization options that allow advertisers and marketers to analyze lift. By measuring the effectiveness of their efforts from any number of angles and perspectives, companies can use Power BI to anticipate how price optimization will affect those results.
Price2Spy gives marketers a complete picture of the pricing landscape in their vertical. Real-time competitor pricing comparisons, historical data analysis, and repricing opportunity alerts help marketers optimize to stay in peak profitability. With various tiers of service available that unlock increasingly advanced features, Price2Spy is an adaptable price optimization tool that can help online merchants of any size drive lift over time.
Prisync allows marketers to input any number of products they sell and monitor competitor pricing in real time. Robust analytics inform per-category indices and demonstrate historical pricing trends so you can optimize your own brand’s pricing based on what’s occurring in the market. The Prisync system also offers stock availability details, so that brands can track what competitors are selling out of and capitalize on opportunities to fill gaps and meet growing demand.
Qualtrics’ price optimization software allows companies to consolidate all their pricing research in one place. Industry-leading studies like the Van Westendrop price sensitivity meter and Gabor-Granger analysis provide a basis from which brands can understand their place in the existing market. With data visualization capabilities and complex logic tools, Qualtrics promises to make it easy for companies to compare themselves against competitors and find the optimal pricing that will allow them to drive lift.
Price optimization tools help companies drive sales lift by ensuring that each consumer sees the right promotional pricing at the right time. wappier uses AI and machine learning technology to power our price optimization products and help mobile game companies improve critical metrics like in-app revenue, customer lifetime value, and more. Ready to learn more about how wappier can help your company optimize pricing to drive sales lift? Contact us today.