Pricing and customer journey, a necessary relationship

30/05/2018

Angela de la Vieja

Over the last decade, marketing teams have assumed that the user, the potential client and their circle of action, is the nerve centre of their activity, the key to the success of a business. This, transferred to the sales teams, has led to the need to recognize the fundamental role played by the consumer when setting pricing strategies. At the end of the day, it seems reasonable that if the user is the one who is finally going to pay for a product or service, its price should be adjusted to their expectations.

At the same time, it is essential to take into account that the user's expectations (as well as their needs) will evolve as the state advances in relation to the brand. How to nurture it, an advance towards the next step? What if the ecommerce pricing strategy was synchronized with the customer journey of the audience?

The customer journey defines the journey that the user makes during their relationship with the brand. In marketing, this is the route that is used to draw the strategy and place the points of impact with it. If these milestones are transferred to the ecommerce pricing strategy, the moments in which it is convenient to apply a specific repricing strategy for specific users can be defined.

There are four key moments to take into account within the pricing strategy of the online store:

1. The welcome. The registration of a user is a clear sign of his interest in the store, its products and its platform. In this case, it is just as valid to subscribe to a newsletter or, even, first direct contact via a form. Many ecommerce (and other types of digital businesses) already take advantage of this milestone to offer a temporary discount and increase the degree of security for the first purchase.

2. The first purchase. The scope of the first transaction implies that the user has really opted for an ecommerce compared to the other possibilities. And this is, first of all, to be grateful for. And what better way to do it than by offering a bonus on their next purchase? Of course, experience shows that putting an expiration date is not always the most appropriate. This can be a good time to check the degree of interest and satisfaction with the client through its use.

3. The recurring purchase. When the user becomes a recurring customer it means that their trust is more than deposited in the ecommerce. As a loyalty action, this point in the road must also be taken into account to offer the consumer a prize to thank for their support.

4. The recommendation to third parties. Today, with the number of options that exist in the market, the recommendation of a platform, product or service by a user is practically the maximum that a brand can aspire to. In this sense, the online store can operate in two ways: make a direct proposal of recommendation to the user informing him of the prize for doing it or to keep this action always available as a loyalty and recruitment program just for the. The only change is the orientation perceived by the client; the reality is that it is possible to offer and enjoy the discount in either of the two ways. This is a practice carried out by companies of all types, regardless of the digital field, which gives even more reasons if it is possible to start it up.

Accompanying the client throughout his relationship with the brand is a way to further strengthen the bond between the two. By choosing to do so through a good pricing strategy, the reward for the user is evident and practically instantaneous. If, before carrying out this process synchronization, doubts arise as to how to do the calculations, a price intelligence tool will be of great help to be able to define the prices promoted without losing the profit margin.

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.