Maximise the sales of your star products by using dynamic pricing

01/07/2019

Angela de la Vieja

Dynamic pricing strategies are already part of the roadmap of the vast majority of online businesses with direct sales. However, once this type of price adjustment has been introduced to the market, there is a moment when growth apparently stagnates. It is time to start optimising the strategy. Part of optimising your dynamic pricing strategy is to maximise the sale of your flagship products.

The so-called KVI (Key Value Items) and KVC (Key Value Categories) are those products and categories that stand out within your online store by generating more interest among users and/or have high conversion factor. Knowing what they are seems, a priori, an unassuming task, however, optimising the commercial strategy to increase sales is sometimes not as simple as it may initially seem.

A dynamic pricing strategy can help an online store’s leading products to multiply their conversion and, consequently, the profit generated, while always maintaining each products profit margins.

When optimising the prices of your best-selling products, there are three steps you should not skip:

Identify which are those products that are going to start being recognised as VIP.
Select the area of action on which to optimise: valuing the purchase in accordance to the user, modify the price according to region...
Establish the percentages that will allow the fluctuation of prices within your dynamic pricing strategy.

This last step will be what defines your pricing intelligence strategy. In this respect, the use of a specialised price management tool will be key to making each and every one of the proposed modifications effective.

Price changes in your star products can be defined by tracking competitor prices, specific offers based on demand and many other factors. However, it is always essential to have reliable and accurate data about what happens in your market to be able to adapt the prices of your products without fear of incurring losses.

How to select your star products

The pillar to making this type of pricing optimisation is to correctly recognise the products to which it will be applied. In this sense, you can find several types of key products in your online store:

Those that sell the most because they have a high demand.
Products that have low competition and are well positioned.
Products that have the capacity to increase the value of your average sale, thanks to cross-selling actions.
Products that dictate trends among buyers because they either draw attention to themselves or open the door to the purchase of other items.

Generating a new pricing strategy for this group of products will allow you to attract more users, improve the conversion rate and beat your competition.

On the other hand, it is important that the flagship products of your eCommerce are not confused with products that experience peak sales for other reasons. If this is due to the lack of stock by your competitors, or responds to a specific unusual demand, you should consider pricing optimisation outside the values assigned to these KVI.

Tips to keep your pricing strategy optimized

Once these actions have been carried out to enhance your key products, it is important that the strategy is subjected to its own revision to maintain optimisation at all times. The first recommendation? Check every so often (weekly or monthly, depending on the needs of your eCommerce) what are those KVI’s in your online store. These may vary by season, so it is convenient that they are reviewed and updated to always maximise sale of those products.

In addition, it is also convenient to take into account what activities the user carries out, with regard to the product, before purchasing. So, keep focus on everything that can affect the sale of this type of item, from the online product details to the way you present it in the catalogue, the home-page of the online store, or the categories to which they may belong.

A differentiated pricing strategy will bring out the best of each product in your online catalogue. Keep it updated and, above all, get as close as possible to your audience to know what they demand to boost your sales.

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.