Online retailers are always looking to grow their businesses, and 2014 will be another big year for retailers to capitalize on new and exciting trends. Staying on top of the number of growth strategies and innovations will be crucial to the survival of all retailers in the coming year.
Numerous articles lay out the trend roadmap for 2014, from geolocation targeting to augmented reality technologies; there’s even talk of adding a twist and allowing your customers to name their own price. The possibilities for the coming year are endless, and this series will take those predictions a step further by delving into the nitty gritty of some of the more exciting trends that are creating the most buzz.
See our previous blog post for all the information you need to know about dynamic pricing in 2014. The quick version? Dynamic pricing is blowing up, but is a major investment for small to medium retailers.
The Name Your Price (NYP) Model
Made famous by PriceLine in the late 90’s, is another e-Commerce trend that has picked up steam in the last 12 months. This generation of connected consumers have come to expect that personable, old-school “haggling” type experience in any and all channels, and retailers are failing to cater to new demands. Headlines and research reveal that consumers will wait – or not buy at all – without the experience of nailing the best deal.
The recent release of data from this year’s Black Friday weekend is the proof in the pudding. Retailers are starting to lose control over this beast they’ve created. Consumers are now waiting for the highest discounts of the year to make their purchases – and it’s your bottom line that suffers as a result. “Name your price” and price optimization will become common retail nomenclature in the coming year, and NYP platforms like PriceWaiter can help you down this path.
You can’t mention pricing without mentioning the bully on the schoolyard – MAP (Minimum Advertised Price). Manufacturers have the legal ability to set the minimum price that retailers can display on their site (or advertise), therefore tying your hands, even though there might be a lower price that you and the customer would both be happy with. To mitigate the effects of MAP you can require users to add a product to cart to see the “real” price, have them call for “best pricing”, use coupon codes, or use a name your price tool like PriceWaiter to let the buyer privately suggest a price as they likely already do over the phone.
You’ve been collecting data about your customers for a long time now, but what are you doing with it? Sure, we all use data to determine what type of advertising we should do, what platforms we should target, and who we should be creating content for, but what about more advanced usages like geo-targeted pricing and multi-device sales strategies?
Every retail or tech conference you go will be chock-full with big data companies looking to help you analyze and/or monetize your data. We look forward to checking in on conferences such as Big Data Tech Con and IEEE BigData 2014 to learn about the newest trends in this field.
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