Dynamic pricing strategies already form part of the path and planning of any online store. These are characterised by adapting to the market trends and to any activity in competitor’s pricing. However, there is one more factor to keep in mind and that’s the idiosyncrasy of each user. Is it possible to adapt the price of each product in the cart? And how can you do it successfully?
Before diving into the matter, some fundamental questions must be answered about dynamic pricing strategies in the cart.
What is it? A strategy that implements price changes directly in the shopping cart in response to certain actions by the user.
What makes this special for the buyer? The high level of personalisation, since it’s executed based on their activity.
What is the objective? To fill the shopping cart thanks to the addition of products by the customer themselves.
How is it achieved? Through discounts offered as a reinforcement to the purchase that is already being made.
Without a doubt, this is the great advantage of using dynamic pricing directly in the shopping cart: increasing the value of the average purchase as if you were dealing with a new cross-selling strategy.
The success rate of these strategies resides, precisely, in the last-minute offers made to the user based on their purchase history, what they currently have in their cart, and, therefore, their tastes and interests. Unlike with generic discount, using dynamic prices in the cart allows the user to identify with the offer, increasing the effectiveness of the action.
But, let’s see what options an online store has when executing this type of pricing strategy.
Using dynamic pricing in the cart is nothing more than accepting discounts and, consequently, modifying the final prices of the products already added to the cart with the condition that the user adds the products offered. This means that the net return on the purchase will increase and both parties will benefit: one receives a discount and the other achieves a better sale.
When implementing dynamic pricing in the shopping cart or basket, you can choose to:
Offer to bundle products already added to the cart: more units at a better price.
Recommend the products that other users tend to buy together, including a specific discount.
Present the possibility of an upgrade on the products added to the cart. Would they prefer a premium version? Is there a larger size available at a more competitive price? Let the user know.
Promote related products from the eCommerce business’s less-visible categories, to improve their profitability.
Add a specific gift in return for purchasing a minimum amount. While this isn’t a change of prices in the cart, it is a way of improving the total price.
All of these actions supporting the purchase and, therefore, the profits of the business. But, it’s also important to consider how they can strengthen the relationship between the users and the online store. With these types of personalised offers, it’s 100% possible to familiarise yourself with the tastes of the users and to build a bond of trust between the audience and the brand.
In short, by using a dynamic pricing strategy in the cart, it’s possible to optimise the sales in your eCommerce business while consolidating your image as a brand that is close to its users and other potential clients. Don’t forget that recommendations between buyers continue to be one of the principal motivations to visit an eCommerce shop for the first time, so taking care of every aspect of your online store is becoming increasingly important.