A successful pricing strategy is more than just the actual pricing in your web shop. In addition to the information on pricing optimisation measures in the first part of our two-part series, you need to consider other key influences. Why should online shoppers buy from you? Do you even offer products that are currently in demand and are you charging adequate prices for them? We recommend that you consider the following three aspects when introducing your pricing strategy.
#1 Show what makes you stand out!
Do you know your Unique Selling Propositions (USP)? It is important for the survival of your pricing strategy that you take those into account. What can you offer your customers, what sets you apart from the competition and gives you a recognition value? When selecting your USPs, make sure that they are compatible with the wishes of your main target groups. It also makes sense to look at your competitors to identify USPs that may not yet be occupied by other market participants.
Align your marketing strategy with the characteristics that make your business exceptional. Such an orientation affects both the products you offer and other areas such as content marketing. If, for example, you have specialised in sustainably produced and fair-trade clothing, this should be visible at first glance. An aggressive communication of the USP is particularly suitable for smaller online shops with narrower target groups. Combine your unique selling propositions directly with your pricing strategy! In the above example, the webshop for sustainable products would justify its comparatively high prices with ethical responsibility and the way it is manufactured.
Tip: In general: Make it clear why you are special and persuade your customers of this.
#2 Know your customers!
In order to succeed in eCommerce with your pricing, you should be aware of who your customers are; this is more complex than it may seem at first. And it is important: different customer groups react differently to prices. In addition, knowing your customers gives you a head start on how to best approach which individual. Innovative solutions for a particularly individual shopping experience on your online shop will pay off.
A target group analysis is necessary in order to approach customers as accurately as possible. Classify your customers into different categories and make target group-oriented offers to the different groups. The categorization can be sorted according to the conversion probability. This describes the probability that customers will become buyers.
Tip: Improve the shopping experience in your online shop and design individual prices with the knowledge you obtain from your customer segments.
#3 Recognize customer wants!
Nothing is worse for online shoppers than to be offered products that have no relevance to them. Based on information about your customers you can find out what is “relevant” for each individual. According to a survey by the online price comparison company Idealo, half of German online shoppers do not like the fact that their data is stored and evaluated by online shops. However, at the same time every second German online shopper is willing to voluntarily disclose personal data if in return he receives attractive advantages or discounts from the online shop. Take advantage of this fact and offer customers exclusive discounts for their data, preferential access to services or participation in bonus programs. The information you collect in this way can be used, for example, for a personalised product range or newsletter and individualised package inserts.
To implement a successful pricing strategy, you have to understand the needs of online shoppers. You do not only get direct access to these wants through information that you generate on your own web shop. What is currently in particular demand? Which products are your customers interested in? Services such as Google Trends will provide you with some initial answers free of charge. This tool of the search engine giant gives you information about what is currently particularly frequently searched for via Google. It’s also possible to filter only Google Shopping search results, which will give you insight into current shopping trends.
Tip: Take the latest online trends into account when setting your prices.
Keep an eye on trends in your market!
Search engine trends can give you some idea of what the latest hypes are. However, this does not yet say anything about the actual demand for products searched for in other online shops. In order to implement a successful pricing strategy, you should therefore know which products are currently popular with your competitors. With market analysis tools like blackbee you get information about how strongly which brands are represented in which online shops or marketplaces. Does the product mix of a competitor or the entire market change over time? When new product trends emerge, the blackbee market analysis tool lets you know immediately and react to them. Additionally, use the price management function of blackbee and observe the prices of your competitors in order to draw specific conclusions for your own pricing strategy.
Don’t miss any new trends in your market and gain a competitive advantage with dynamic pricing. blackbee can support you with highly valid data. Curious? Talk to our experts about the tailor-made solutions of our Business Intelligence Suite.