For an e-commerce it is a must to use technology to create a digital experience that seduces customers
It turns out that digital consumers know what their priority is when they shop online: price. In any study done to investigate purchasing behavior, the data reflects that price is the key factor in any purchase decision at an e-commerce.
This only confirms what most of the buyers do: search the internet, compare prices, look for alternatives on Amazon, see if there is another option on AliExpress, review comments on social networks, consult the seller’s or brand’s social profile, read product reviews, and then, finally, select the option with the best price.
No wonder that e-commerces are fighting for every sale. When we delve deeper into the data, we discover that the second decision factor in an online purchase is free delivery. That is, money and time are key for a digital buyer and, by extension, for any e-commerce.
In any case, digital consumers want to have a mobile experience that lives up to the times. For an e-commerce it is a must to use technology to create a digital experience that seduces customers. On this basis of technology and user experience strategy, the competence of e-commerce is sustained by a client who thinks exclusively about their convenience – and that has all the digital capabilities to choose from.
One way to respond to this pragmatism of consumers is by managing dynamic prices. This means using technology so that an e-commerce’s pricing is not only flexible, but reacts intelligently to the variables of the buying context. That is to say, the price of the product fluctuates according to demand (internal variables with algorithms that analyze the context of purchase) and of the competition’s prices (external variables that are monitored).
Price fluctuation does not mean making discounts or launching promotions, but rather offering the price that is best for each user while maximizing benefits. These are some examples:
- Increase prices by stocks. Here, the algorithms help the e-commerce understand two key points: This makes it possible to recalculate and generate real-time prices for users while optimizing the benefit of the inventory and focusing on the convenience of the consumer.
- Reduce prices to attract customers. The combination of demand analysis, consumer behavior, and monitoring the competition can generate very attractive opportunities. An interesting case is that of products that have high prices and that allow a discount or temporary discount. When high prices are detected in competitive products, an e-commerce can react with a temporary price drop, launching promotional actions to attract new customers. With a margin that remains attractive, this dynamic price situation is a lever for generating sales.
- Price increase by margin of growth. This situation usually occurs when a product is already in the low section of its price range. The algorithms analyze the context of purchase, but also monitor the prices of the competitors and, if they detect that the prices of the competition are too low, can automatically increase the price of the own catalogue in search of the exact point of convenience for the buyer.