Omni channel prices: how does the purchase platform influence the price?

13/04/2018

Angela de la Vieja

Multiplatform, Omni channel... Whatever the name you want to give it, the day to day digitization of the users has endowed the reality that surrounds the purchase and sale with a much deeper dimension. Find a product in a marketplace, approach to check its quality in the store and make the purchase decision through a smartphone. So, how should we deal with this new multi-channel shopping cycle that consumers have acquired?

Here the doubt is clear: maintain the same selling price in all platforms or opt for complete differentiation? Although at the beginning of ecommerce and mcommerce a completely differentiated pricing strategy was put forward, today it is demonstrated with the successive actions of major brands that the key lies in collaboration, a pricing strategy that combines the focus of the single price with the specific pricing per channel. It´s a 360 degree strategy which gathers all the factors so that, in the end the sale succeeds.

This theory is reinforced by the large amount of information that buyers can access today, responsible for the exponential comparison of prices. A completely unlinked pricing strategy among sales channels is a big handicap for branding, as it negatively influences brand perception by potential customershttps://www.minderest.com/blog/2017/10/05/brand-building-and-pricing.

When considering Omni channel pricing strategies, three keys must be taken into account

1. The supports that are going to hold the purchase.
2. The costs of maintaining each one.
3. The potential volume of attraction and sales that can be achieved.

In this way, it is much more convenient, practical and safe to establish a general pricing strategy for all points and sale platforms.

On the other hand, Omni channel pricing strategies must contemplate the possibility of developing own offers and promotion plans. These types of actions can be launched with two objectives: speed up and power global sales or suppose reinforcement to the abandoned shopping trolleys in other supports, allowing optimization of the decision making of the user's purchase.

An example of this is the exclusive promotions of AliExpress through its app. From its own online marketplace, the Asian sales giant offers the user the possibility of acquiring the product that interests them with a lower price or more interesting shipping conditions through the mobile application. What is the objective? To get visits through the app, enhance the upselling and increase the user's interest in buying through other media. Here evangelization also has a place.

Uniting multichannel and price optimization

How to keep the Omni channel pricing strategy optimized? Dynamic pricing and competitor monitoring tools are the partners in crime of this global objective.

Thanks to pricing tools it is possible to dictate the actions to be carried out in each of the sales channels and monitor the prices of the competition to maintain competitive prices without losing profit margins.

Dynamic pricing software allows you to run pricing tests on different platforms. The data gathered by them will allow designing the correct strategies to adjust and optimize prices in each case.

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.