When a consumer is weighing up whether or not to buy a product, you can employ specific techniques to speed up the final purchase decision. Among them are scarcity and urgency tactics that appeal to eCommerce users’ sense of need and exclusivity. Find out how to implement them within your online store’s pricing strategy to reap the greatest possible rewards and help you increase sales.
As with psychological pricing, it has been shown that causing customers to feel a sense of urgency produces a fear of missing out and arouses competitive, even slightly aggressive feelings in the user. They do not want to miss out on the opportunity to buy a good product at a great price. For these strategies to work, attractive prices and powerful calls to action must be used in tandem to generate a need in potential buyers. The ultimate goal is to encourage the user to take advantage of a unique opportunity with limited availability in terms of time and units.
Two strategies to create urgency and increase demand
Publish limited-time offers
Otherwise known as Flash Offers. Advertising a great discount on your products for a limited time will generate more interest than launching a long-term promotion. The shorter the time the offers will be active, the greater the sense of urgency for the user. Therefore, you must always show when the promotion will end. Some eCommerce or marketplaces, such as Amazon, choose to include countdown clocks on their website.
To make them as profitable as possible and help increase sales, you can apply these offers to a selection of products from your catalogue. You can also customize offers by activating cross-selling sections or individualized mailshots. Then the chances of selling may be even higher.
Along with discounted prices, also included in this category the following:
- Free shipping or special terms for users who buy before the end of the offer.
- Discount vouchers that only work on certain days.
- Pre-sale periods with exclusive prices for selected customers.
Limited units and exclusive collections
Another way to attract users, especially those more susceptible to buying new and unique products, is by creating exclusive collections with a limited stock quantity available. The prospect of acquiring a more exceptional object speeds up the purchase decision. The same applies to items with limited stock or of a seasonal nature. In these situations, you can also use a countdown of the number of units available.
Dynamic pricing to adapt prices to the market
With these strategies, you can constantly change prices to make them more appealing, attract different audiences and adapt to fluctuations in supply and demand. Combining different approaches will help you refine your pricing strategy, thereby helping you optimize sales and profit margin.
Dynamic pricing will be your best resource for these price changes. You can collect information about your business and competitors using an automated tool. You can then use this information to help define pricing rules and predict the most appropriate prices at any time and for each target market. Don’t forget that these changes must be consistent to ensure that eCommerce maintains a high user satisfaction level.
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