Why optimize your eCommerce pricing strategy?
Price is an important factor for many, if not all, of your customers. Some customers are looking for bargains, whilst more affluent customers might find a cheaper price devalues your brand. You should also factor in their brand affinities, and the product selection you have available – and items you want to upsell.
Below are some ways you can use the Fresh Relevance platform to make sure the price is always right.
1) Reducing bounce rates for new visitors
When a customer visits your site for the first time, there is a wealth of information available about them, even without there being any purchase or browsing history available yet. By using Fresh Relevance’s Price Affinity Predictor, this information is used via AI to predict what price range the customer might be looking to buy in, which reduces bounce rates for new visitors as they likely won’t be intimidated by the price. They will also not devalue your brand for being ‘too cheap’.
2) Increase AOV by recommending products that will take you to free delivery
Customers will often increase their order value in order to reach a free delivery threshold. In the Fresh Relevance platform, you can differentiate price filtered recommendations based on how much more the customer needs to spend to reach this threshold. Serving these recommendations on the cart page easily reminds customers that they’re nearly at the minimum amount required, which makes it more likely that they quickly add more to their cart.
3) Display different content based on price affinity
Fresh Relevance’s rules allow you to deliver different content to customers based on our AI technology’s price affinity predictions. This allows you to make the most of your customer price segments. For example, you can serve a discount only to customers who are more likely to buy when there’s a bargain to be found.
4) Recommending more valuable products based on historical data
You’re probably already using behavioral targeting for your product recommendations, and your customers’ previous browse, cart and/or purchase history is probably already being put to good use. But did you know you can also use this data to encourage upselling?
You can display products within a certain percentage range based on historical data to increase the likelihood of click-through rates, and use that to increase your customers’ average order value.
Want another top tip? A/B test your configurations and percentage boundaries on your website to optimize effectiveness. Keep doing this to always make sure you have the best strategy in place.
5) Create top products in certain price range recommendations
An effective strategy to try out on your website is using product recommendations such as your top sellers in different price bands. This can be done by showing the most purchased products limited to a price range. For example, you could have ‘hot picks under £20’ and set it up so it only shows items between £10-£19.99.
This could be used for certain customer segments, or even be used during Christmas when recommending stocking fillers, etc.
6) Product recommendations with dropped prices
If you have the behavioral targeting module within the Fresh Relevance platform, you can use personalized product recommendations. These can be used on your website or, for example, in your BAU newsletters to highlight newly discounted products.
You can use the price change filter to restrict to products that have dropped by a certain amount or percentage point. For example, you could restrict it to £5 discounts, or 5% discounts.
7) Highlighting price drop items
With the right behavioral targeting module and the triggers modules, you can send price drop alerts to customers. Just as above, these recommendations can be selected by your customer segments, and can also work very effectively in bringing customers back who have previously been eyeing one of your products, but weren’t sure about the price tag yet.
We’ll be covering more top tips in future editions of FreshPro. In the meantime, book a demo to find out how Fresh Relevance could help your business generate results with personalization, and getting the price right for your customers.
Have any questions? If you would like to discuss this further or receive step-by-step instructions, our Customer Success team is happy to help: [email protected].