Every marketer or pricing manager at least once seriously thought about what would be the online retail in the future. Over the past few years, digital has changed the competition in e-commerce: the competitive advantage depends not so much on the product and the behavior of your competitors in the market, but on the experience that gets your customer together with the purchase. Welcome to the era of “Experience Economy”!
Today, digital – a parallel life of your buyer, its projection in the form of a separate mail accounts in social networks, search history on Google. This means that when deciding on purchasing a digital projection of your potential customer performs multi-channel travel network: compare prices, read reviews, browse ratings. And each of these points of contact affects the reputation of the online store, the perception and, ultimately, on users’ behavior.
At the same time, behavior and desires of customers are constantly changing and, therefore, e-commerce requires new approaches.
We have collected the main buying habits and user behavior characteristics, and compared them with the options of interaction and reactions online stores to help the latter to make a profit no matter what.
Consultancy examined the most important criterion of consumer experience “Digital-Aboriginal.” 58% of respondents believe that the key to success – understanding customer needs and offer the relevant experience and comfort in using a customer-oriented strategy. This concept is not new – excellent service consumers are perceived as a matter of course. But what is meant by client orientation? This term includes quality consumer experience that provides store for its audience. Only one store will get re-purchase, customer loyalty and profits that will accompany the buyer during the whole way – by reference to the stage “after purchase”, and back around.
- E-mails showing new products and preferred brands
- Mobile alerts focusing on user preferred products
- Product recommendations based on your search history and purchase history
- Website, advertising in social networks or mobile applications, banners, promote sales of preferred brands or product categories
- Support sales using data for cross- and up-sell
- “Last Chance” time-limited discounts on related products
|After the purchase:
- Email-ranking queries on filling, writing a review, or a review for the product
- Follow-up article focused on how to use specific products
Influence the pricing strategy
Anticipate changes in consumer behavior is not easy, but it is fairly easy to predict that the emergence of new devices and applications is expanding the horizons of consumer experience. So any customer of your online store periodically “guests” at least one of your competitors. Loyalty based on the cliché ‘favorite online store “does not work anymore because of newly acquired habits of buyers” to compare and find the best price for the product. “Today, the buyer, while in the offline store can take a photo of the product of interest and looks for his (or analogs thereof) on the network, often – in several online stores at once
Another study PWC found that “60% of online shoppers are choosing your favorite online store because the price is optimal.” This is a big plus for retailers (through the price control marginality online store), because the “optimal” price – does not mean the lowest.
What is the optimal price? It is – in the current buyer’s psychological perception of the boundary between ” inadmissible cheap” and “prohibitively expensive”. Accordingly, pricing manager needs to get into the space between the borders and play simultaneously in two games: to provide high margins for the store in a highly competitive market environment, and earn customer loyalty, given their perception of the current price.
Automate pricing within the customer experience
Pricing online retail is gradually transformed to a format that online platforms such as Facebook Ads Platform – prices based on achieving various marketing purposes. Communication Future between online store and online buyer through price channel resembles the interface in which the buyer can choose all the product configuration or services which it expects to receive, and the online retailer, at the same time to set and achieve their own the KPI, where the price a significant part of the transaction process.
Today, e-commerce is moving toward the future: the most advanced players seek to understand the critical price range for each SKU or product group, and the price varies within the boundaries of the interval. . That is, buying a refrigerator for 21,500 p buyer is willing to pay a premium price of 0.5-1.2% (in other words – p 10000-2000.) But whether work is the same with the phone 6,500? Absolutely not. And if in this simple example is very easy to tell the difference, what to do if the store you need to understand the price range for the product category with hundreds or thousands of products?
The range of acceptable prices (from the point of view of the buyer) somehow built on the main store prices of competitors (in the perception of the buyer to affect the price the store’s reputation). To prepare for the compare prices from buyers, the manager of the online shop should be sufficient to use a simple algorithm:
- measure the impact of competitor prices in the sales of the product group’s own stores;
- find the critical level of prices at which the buyer refuses to make a purchase;
- To remain in the range of the most “optimal” and profitable prices.
Of course to do it manually to put it mildly, problematic – the slightest error in the table and formula … It is better to use one of the existing market of solutions, which provide automation of the process of revaluation of goods in the online store.
We need to choose a product that collects data on prices, the availability of products in stock and advertising campaigns of competitors, and, based on the data collected, to overestimate offers products in your store, according to pre-revaluation rules.
It is an automatic solution, whose actions are governed by the current business strategies can help your online store to provide an entirely new digital-consumer experience. And you, as the manager of the store, will benefit from the ensuing “Customers Era” and will always be one step ahead of the competition thanks to modern technology.