4 Reasons to Get Your Pricing Strategy Sorted Before Christmas
The holidays are coming up and that means customers are looking for a good deal. At this time of year you can let your prices do the talking for you. Here’s 4 reasons we think you should be focusing in on your price strategy for Christmas right away:
- Transparency – You’ve got nowhere to hide! Demand is high and customers are armed with comparison sites and one of your competitors are only a click away. Mobile commerce has enabled customers to check out prices of products online while they’re in store – they’re transparent across every selling channel.
- Competition – You may have heard of Jet, Amazon’s new major competitor that surfaced a while ago. At times its prices were up to 12% cheaper than Amazon’s, but they’ve had to lower their membership fee to stay competitive. Now it’s only 4-5% cheaper. If the big giants are doing what it takes to stay competitive, you know you should as well.
- It’s Important to Your Customer – Over half of shoppers considered price the primary influence on their purchasing decision. If you can’t save them money by lowering the price, then you can still attract their custom with offers like free shipping.
- There Are Ways to Make Yourself Stand Out – It seems daunting trying to stand out from the crowd but it really doesn’t have to be that difficult. You’ve got loads of options. You could do limited time sales, offer coupons for returning customers and even use a dynamic pricing strategy. There’s every reason to start sorting out your strategy, so get on it.
Mobile eCommerce Usability Benchmark
Source: Baymard Institute
The world’s most comprehensive usability database has been released as of this month. Baymard.com is offering one of the most incredible tools for marketeers. Some of the features included in the database are: 5,200 mobile site elements reviewed and scored, performance scores for 50 major mobile sites, 678 categorised full page screenshots of mobile page types and 3,600+ examples of the best and worst mobile eCommerce practices. That’s one hell of a resource.
UK Highlights from the ‘Delivering Consumer Choice: 2015 State of eCommerce Delivery’ Survey
The new MetaPack survey is full to the brim with excellent insights into eCommerce delivery across the globe, but we’ve narrowed down the highlights from the UK:
- 64% of respondents claimed they bought goods from one retailer over another because one offered more delivery options.
- 48% have actually paid more for products because the delivery options were more convenient.
- 62% of people have abandoned their orders because the delivery wasn’t free.
- 32% of UK customers (more than any other region) didn’t complete their orders because in-store collection wasn’t an option.
- UK consumers are the happiest of all the regions surveyed to wait longer for delivery if the goods are less expensive.
If you’re interesting in seeing what’s going on with other places you can check them out here.
Negative Customer Experiences Affect Online Conversion Rates
If there’s one nightmare we want to avoid it’s a negative customer experience. Software firm UserReplay has surveyed US and UK decision makers on concerns they face when understanding their customers. Their biggest concern (43%) is the effect a suboptimal customer experience has on their digital conversion rates
Furthermore, 33% of them believed the negative experience could damage their brand image. This is food for thought for decision makers who are unsure of how they’re actually communicating with their customers through mobiles. It’s not as simple as you’d think – 78% of eCommerce decision makers have a ‘moderate to significant’ struggle understanding why consumers are having problems using their website.
Shoppers Take Out Their Frustrations on Black Friday
Hell hath no fury like a customer scorned. 50% of customers have admitted that if they’ve had a problem with a retailer in the past, they don’t plan on shopping there on Black Friday/Cyber Monday – and nothing can change their minds – no matter what the discount. Customers have developed an unforgiving attitude towards home delivery, and a third insist that online ordering ought to be more convenient and streamlined.
The fact customers are carrying grudges shows the importance of omnichannel efforts all through the year. Sure, “the customer is always right”, but a massive challenge facing retailers is maintaining customer content while still remaining profitable. It’s not sustainable for companies to dive into profit margins just to satisfy customer demand, so it’s important for retailers to take a holistic view of their fulfilment strategy to make better informed decisions.