Do you know almost two-thirds of startups just do the guesswork when setting prices for their products? Does that guarantee them success? Think again:
- More than 50% of Americans shopped online in 2016
- Nearly 51% of shoppers prefer to shop online rather than going to a brick-and-mortar store
- Around 96% of Americans shopped at least once in their lifetime
Now here are the most crucial facts related to pricing:
- 87% of online shoppers admitted that price plays a key role in their online purchase decision
- 8 out of 10 American shoppers admitted looking for the lowest price when shopping online
Is there a pattern?
Most definitely, there is! This simply means more than 85% of online consumers check out the competition for at least 50% of their online purchases.
This also means, the consumers now enjoy real-time views of the market from their handheld devices, and most of the time compare prices side-by-side to get the best available deals.
Online shopping is now all about comparison shopping
Other than introducing unique products for shoppers, the key challenge for a business owner is to set a price that customers are willing to pay while ensuring that you get the price you deserve. This is not easy! It calls for unique market insights based on customers’ needs and preferences with estimated revenues and detailed implementation plans. Various studies indicate that businesses can get benefited from the customer need-centric pricing approach if they want better sales.
However, before you reevaluate and adjust the pricing of your products, you must have a clear understanding of current market trends, consumer behavior, and pricing strategies of your competitors. After all, you are competing against all of them in consumer’s mind.
How Pricing Optimization can help?
Businesses need to examine the existing market data to predict and alter prices and other attributes. This can be done by using a customized pricing simulator wherein you can run scenarios to determine and analyze market share or revenue at various price points. This would also enable your sales team to use unique combinations to optimize revenues and market share for all your brands. By introducing a value-based pricing structure, our clients have experienced a 2-3% increase in annual bottom-line improvements and a quick ROI in only a few months after its implementation.
How Wersel can help?
We are an innovation-driven group reputed for building intelligence, analytics and visualization tools for information gathering and analysis to deliver hidden consumer insights. We do predictive analytics that makes the data highly interactive and agile.
With an 80% customer retention rate, our pricing consultants help you address pricing challenges and achieve exponential growth for your business. Consider getting accurate data reports on an hourly, weekly, or daily basis about what new products have been added and removed by your competitors, what are various price changes a LOT more!
Do talk to us to help you figure out how wersel can help you achieve a growth that 45% of our first-time customers have. Let’s talk today!