New pricing strategies for 2019: Omnichannel and dynamic pricing

30/01/2019

Angela de la Vieja

When talking about pricing strategies, we know that we must always have a clear understanding regarding current pricing trends. These vary depending on the behaviour of the potential buyer, the incursion of new business models or the opening towards greater levels of competition.

This is why it is necessary to discover and get to know new pricing strategies that allow each brand to differentiate itself, anticipate the wishes of its audience and be at the forefront of the market.

In this sense, it should be noted that pricing could have different implications when talking about strategies for online stores, for manufacturers or for those brands that do not have a direct sales channel to the end consumer, but through a retailer.

Undoubtedly, one of the big trends that is expected for 2019 are those related to omnichannel pricing strategies. Although the adaptation of prices between channels continues to be at the expense of each business’ quirks, in an environment in which more and more users buy through different platforms, it is of imperative necessity that each and every one of the brands reflects on how to get on the multi-channel boat during 2019.

Equate online or offline prices?

With what motive? How much room for improvement can there be? What is our competitors pricing strategy? It’s necessary for each person in sales, business strategy and marketing ask these questions and internalise them, only then will they be able to know which is the solution that best fits their online store.

Another trend in pricing for 2019 will revolutionise the brand-product-value relationship. That potential buyers become concerned about branding, is a reality. In fact, it seems that we are living, precisely, on a previously unseen wave of brand generation, together with its symbolism and belonging. This is something that we can be especially appreciated in luxury goods and, in general, the entire fashion sector. However, it has also been extrapolated to other sectors like technology. A good example here is Apple and their pricing strategy.

Now, more than ever, it makes sense to bet on pricing strategies based on the value that the customers project onto the product itself. Adjusting the price of the product according to this perceived value is key to maximize profitability. What factors should we take into account? The seasonality of the purchase, the needs of the user regarding the product and the contribution of value by the brand for that particular product. What makes it different?

Last but not least the role played by dynamic pricing strategies should be highlighted. And it is this technology, and the associated software, that have really made a difference regarding dynamic pricing in recent years.

The possibility of adjusting the price of each product individually as different factors vary is, as of today, the cornerstone of many large retailers such as Amazon. The great advantage offered by specialised tools for dynamic pricing is to be able to identify which are the key indicators that should lead to prices changes.

In whatever case, it is necessary to take into account pricing strategies oriented to the competition. As experts continuously point out, there are more and more reasons to monitor competitor prices – this is one of the essential keys to execute a complete dynamic pricing strategy.

It is clear that both dynamic pricing and having knowledge of what the competition is up to will not be new pricing strategies during 2019, but to continue with them will be essential to not lose market focus.

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.