Pet Culture drives improved price competitiveness and customer loyalty through data-driven pricing strategy
Pet Culture, an online petcare retailer based in Australia, caters to the pet specialty market by providing a diverse array of products and services such as delivery, insurance, and vet advice. Positioned within a crowded and competitive market, Pet Culture recognised the imperative to distinguish itself and foster customer loyalty beyond the confines of pricing alone. However, the company encountered obstacles in utilising data effectively for pricing decisions due to limitations in their existing analytics tools. The tools fell short in delivering comprehensive and accurate insights into both their price competitiveness and customer preferences, necessitating a strategic approach to address these challenges.
Pet Culture implemented ShopGrok Insights, a pricing intelligence platform, to gain a comprehensive and real-time view of their price competitiveness and market trends.
ShopGrok Insights collects and analyses data from multiple sources, including Pet Culture’s own sales data, competitor pricing, and customer behaviour.
Using the advanced analytics provided by ShopGrok Insights, Pet Culture was able to identify opportunities to optimise prices and promotions and implement a data-driven pricing strategy. Specifically, they were able to:
– Ensure their most important KVI products were always competitively priced
– Inform their subscription pricing program to drive loyalty
– Optimise their Google Merchant Feed spend to allocate budget to KVI products that are competitively priced each day
In addition to the platform, Pet Culture received support and guidance from the ShopGrok Insights team to help them understand the data and implement recommendations, and generate Board level reporting.
Since implementing ShopGrok Insights, Pet Culture has improved its price competitiveness and customer loyalty.
Significant revenue growth throughout FY23 while remaining competitive and maintaining healthy gross margins
Pet Culture’s subscription pricing is now consistently at or better than competitors, and sometimes up to 10% cheaper
Increased Google Merchant conversion by using ShopGrok data to prioritise daily marketing spend to their most important and price-competitive items
The use of data-driven pricing has helped Pet Culture to differentiate itself and offer value beyond just price. Pricing hygiene has allowed other elements of the Pet Culture value proposition to shine, such as additional perks like free Aussie Hazard cover and 24/7 access to VetChat.
Pricing is the #1 driver of profitability in any retail business, but most retailers leave it to gut feel and a remarkably incomplete picture of current market prices. Talk to us about how we can help you devise defensible long term pricing strategies.Request demo