Price is the core factor where a customer stops to decide again, either to place an order or find another option. The online buyers are more sensitive to the prices as they need the best value for money, where a top-notch quality product is made available at affordable rates.
For any eCommerce store to grow, it has to keep on customizing the pricing strategy to meet the demand and expectations of their target community and excel in the market despite giving discounts and attractive offers as well. Here is a quick list to help you personalize product pricing for better customer experience and eCommerce growth.
1. Enable Customers Own Pricing
Setting a fixed price for a standard product quality may somehow disappoint the customers as they may need customization as well. For example, you display computers or laptops for sale for pre-defined specifications. The visitors who may need to change a specific part in it may not be interested in such products.
For this, you can create product boxes with a base price plus varying prices for the variety and quality of the products they select. For example, if they choose higher storage of hard disk or a more robust process plus a graphics card, the prices may accumulate accordingly. As a result, they may place orders of a higher value, which ultimately boosts your store revenues.
With such price customization, customers are well aware of the parts they are adding to a box and forming a complete product. Therefore, the price they are paying for it is quite acceptable. They are satisfied with the amount they have to pay. You can take price discrimination further by create different groups of customers on your store and create exclusive discounts for them or you can use Magento 2 Tier Price Extension to let customer choose from per-definded purchase qualities.
For example, you can allow reduced pricing to wholesalers as they order in bulk or do the favor to your regular customers. To have such a functionality in your Magento store, you can use the set price per customer extension and assign subsidized or premium pricing to them. It helps you automate the price change to specific customer.
2. Know Your Customer’s Willingness to Pay
Have your research and find the amount of money your potential customers are willing to pay for the products you aim to sell online. The consumers now first educate themselves about a product or service before they order and consume it.
For customizing the product price according to the target audience, it is mandatory to read their minds and set the prices a bit lower than their willingness to pay. As a result, they will be hooked up at the landing pages and hit checkouts without giving it a second thought.
3. Vary Prices To Demand
The demand and supply rule works perfectly well in price customization or price discrimination for maximizing the growth and sales of your online store. Therefore, you must know the peak hours, days, weeks, or months of your business when the customers need your products or services the most.
For example, many people book a tour plan for a tourist destination for weekends and holiday seasons. For those specific days and times of the week, they are willing to pay even higher prices to enjoy at the fullest. The demand rises, and so your costs as well. You can set pricing slots for varying days and hours.
For example, the prices of the front, back, and rear seats vary in a show, concert, cinema, or auditorium. The demand for the front seats rises when a celebrity or singer is about to perform. The same stays true for the hospitality industry and many other businesses or you can use Magento 2 hide price extension that will replace add to cart into ask for price to encourage your customer to contact you best quote for product.
4. Charge Your Regular Customers a Higher Price
The regular customers are loyal to your business as whenever they need a product or service you deal in, the name of your business comes into their mind. They are addicted to your dealings and do not want to take the risk of trying other vendors or stores. However, keep the quality retention in mind.
For the trust you have built-in making them come back, you can charge them a bit higher price as they are lazy enough to find another alternative. Another interesting thing about regular customers is that they have the first good impression of your business, which makes them come back.
They stop comparing your store with others. Take advantage of it and charge them a premium price with the belief that they are getting the best product available in the market. As a result, they will retain your customers regardless of paying more. The online stores powered by Magento can avail from a set of innovative tools such as price markup extension as it automatically calculates premium sales price with your pre-configured profit figure, which can be either fixed or percentage of the base price. This saves you from the hassle of adding profit manually to hundreds of your store products.
5. Combine Standards Pricing with Subscriptions
Standard pricing is proper to have customers for once, but what about your regular customers who buy the same things in routine and have to ask for a discount every time they visit your store. Ease them by introducing a subscription-based model so that they subscribe for a set of products and receive them at home after every week, month, or as they direct it, without placing orders or negotiating the price.
The subscription-based pricing helps businesses grow as they get regular customers or clients and are dead sure about several sales each month. The model works in combination with conventional shopping as well. A grocery shop, a meat or vegetable supply business can maximize its store revenues by bringing its customers to subscriptions.
6. Offer a Discount to New Customers
New customers are hard to acquire. You may need to discount them as they are expecting it. In addition to quality, the discount offer works as a catalyst and you get a conversion. The visitors who are not sure about your products may land on your eCommerce website with the same conventional thoughts in mind.
Like, they may need to why I shall place an order if another store has a similar product at almost the same price. Get to know the first-time visitor by their IP addresses and display a popup with a discount coupon and grab the lead.
7. Change Prices for Special Events
The users of your online store expect deals and discounts on special occasions such as Black Friday, Christmas, New Year, Thanksgiving, Boxing day, Back to School, Fathers’ and mothers’ day, etc. Do not ignore serving them with the discounts acceptable to you or your management.
Slashing down the price by slightest of percentage can gain your conversions in the meantime, and a positive image soon. The perception that you offer discounts on special events may keep them remember the store and visit on the upcoming event as well.
Final thoughts
A pricing strategy needs continuous adjustments and tweak-ups, as it does not prove useful in a healthy state. For example, if the price is attractive today may not be as attention-grabbing if another store competes. Therefore, an eCommerce store has to keep on changing and trying on a variety of strategies for maximum growth.
