Three Tactics for Price Promotion Campaigns

26/07/2017

Angela de la Vieja

Consumers are smart shoppers and know how to get the most out of the internet finding deals online before deciding. And they also know that there are a lot of ecommerce competing to convince them with their special offers and discounts. A third factor must be added to the two already mentioned: the importance of the price for digital buyers, since it can have a weight of up to 80% in the purchase decision, as shown in the Total Retail 2017 of Price Waterhouse Coopers and other studies.

With this settled buying behaviour, the responses of ecommerce are promotional actions, campaigns in which price is the main protagonist, but not the only one.

Special discounts

These types of campaigns are among the most used in electronic commerce. In fact, they are already well known to consumers and are widespread in the world of ecommerce. Their effectiveness is also demonstrated, since the natural behaviour of the buyers is to lean towards a product with a reduced price, because it is more attractive than another product with its usual price.

To get the maximum benefit from this type of campaigns, the key is to present to the potential buyer three key figures: the original price before the discount (preferably crossed out), the new discounted price and the discount percentage (to show how much the buyer will save). When the discount is very significant, some ecommerce even have the figure that will be saved by the consumer next to the percentage.

This type of actions are widely used by ecommerce of all types of sectors, and are usually associated with seasonality, as it is a good argument for ecommerce to present a special price. There are many examples of this type of campaigns, such as Christmas, season ends and sales, or special days such as Black Friday or Cyber Monday.

Volume discounts

Another way to encourage the purchase is to carry out volume discount campaigns, which are essentially those in which the price of the products decreases the more of them a consumer acquires. These types of actions are widely used in ecommerce when selling recurring consumer products, such as food, hygiene and perfumery, pet articles, etc.

Similarly, B2B ecommerce use these campaigns when the product sold is a raw material for the purchasing company, such as office supplies, print cartridges or promotional merchandising.

Promotions by amount of purchase

These types of campaigns do not focus directly on the price, but on proposing to the consumer a reward for a minimum purchase amount. These actions can take many forms, such as: free delivery, sending an additional product or gift, a discount applicable to a second purchase, a free premium service, points accumulated in loyalty programs, etc.

These types of campaigns are the ones that ecommerce launch to increase the average amount of sales and ensure a minimum profitability of each online transaction. But for these campaigns to have good results, the goal associated with the sale must be well defined, such as getting new customers or get recurring purchases from loyal customers.

In the case of new customers, all actions associated with special prices - in any form - are a good strategy. In the case of loyal customers, things change, since we are able to know their buying pattern and therefore plan customized actions for them aimed at getting recurrence. Amazon Prime is a good example of a customer-only premium service designed by this giant ecommerce to achieve customer loyalty and recurrence at the same time.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.