Win your customers’ loyalty with optimised prices
04/08/2022 - Price optimization
Price optimisation is no longer just a value for the company looking to sell at a more profitable price for its own benefit. Digital users already know that dynamic pricing strategies fluctuate all the time. They also use them to turn to one retailer or another on each occasion. How can you build loyalty in your relationship with your customers through price optimisation?
3 reasons to take an interest in user loyalty
The rise of online shopping has transformed the traditional customer lifetime value into a plethora of possibilities that users can choose from when they need to replenish or replace their products. This has made gaining your customers’ loyalty even more complex and relevant. Retention and repeat purchases will be your primary goal once you turn your contact into a purchase.
Do you need more reasons to make your users’ loyalty a priority?
- For the generations that buy most online, prices and matching products to their needs are the keys to repeat purchases. These two factors will allow you to count on millennials’ and baby boomers’ loyalty in the medium and long term.
- User loyalty opens the door to upselling to higher-quality items. Users who are happy with their services and products sometimes become influencers and make more higher-value purchases. These are known as ‘power users’ or brand ambassadors.
- An open and transparent loyalty strategy ensures that those already predisposed to loyalty stick around. Communicating your loyalty strategy openly (either through points or discounts for users) will attract first-time users, aiming for repeat purchases in the future.
How to win your users’ loyalty with price customisation
Dynamic pricing strategies and customised pricing are the superheroes for your new price optimisation. Using pricing management tools will be your greatest ally to set the best price for each user group and their circumstances. How do you start applying this differentiation?
- Collect purchase data and analyse it for behaviour patterns to allow you to group users. Who makes the most repeat purchases? How many times do those who end up buying your products look at them? When do they come back to your store to purchase again? What type of product do they buy?
- Measure the price sensitivity of each customer group. Knowing how much your users are willing to pay for your products allows you to set optimum prices for each item. The perception of a fair price for the product’s value is one of the most critical loyalty drivers.
- Adjust offers and pricing plans. Too many options are never a good idea. Limit your pricing plan to a maximum of six options and draw up a promotional pricing strategy that supports the user throughout the key points of their customer journey. Excessive repetition of offers will delay the purchase decision. The user tends to wait for an even better offer than the one currently displayed.
Price optimisation is a strategy you should include in your business to protect and maximise your profits with users who stick by your brand. A price intelligence tool such as Reactev will help you achieve this. Have you requested your trial yet?
Category: Price optimization
