Personalized Pricing Strategy in BigCommerce
Pricing strategy is one of the most important aspects of a business for it influences customers’ purchase activities. Retailers often use a dynamic price. However, a personalized pricing strategy is becoming more popular recently. What is the difference between dynamic and personalized pricing? How did automation help optimize your price list? The answer is as follows. Dynamic vs Personalized pricing The main difference between these 2 pricing methods lies in the variables based on which the price is set. Dynamic pricing depends on factors that are not customer-related. This includes the time of the day, date of the week, the demand for the product, competitors’ price, available supply, etc. With dynamic pricing, different customers at the same time in the same place would see the same price. The strategy doesn’t take into account the customer’s personal preferences and whether they are of value to your business. Personalized pricing is basically the opposite. This method relies solely on a customer’s characteristics and actions. Many demographics and behavioral data is evaluated to create a unique price, such as: Demographics like city, region, date of birth The frequency of page visit Customer lifetime value Shopping history and discount program Other products added into the shopping cart, etc In contrast to the previous method, with a personalized pricing strategy, in the same place at the same time, different people would see different prices. The goal is to maximize the sales capability of every individual customer. For example, loyal customers should receive better price offers than those who have never interacted with the brand. Thus a lower price would incentivize them to purchase more frequently from your store. Remember, a 1% improvement in your price can result in an 11% increase in your operating profit. Improve price list with automation The first step to set up a personalized price list is to segment customer information. Normally, retailers have to export the whole store data into a spreadsheet and start segmenting thereafter. However, this might take a lot of time reviewing and is always prone to errors. You need automation for convenience and better accuracy. With Atom8, this can be done fairly quickly. All you need to do is setting up a workflow to segment your customer based on specific criteria. Then you only need to export data of these customers when creating a personalized price list. Some categories that are commonly used by retailers are: Type of customer: new or recurrent The source of traffic: organic or paid or referral Geolocation based on IP address Shopping behaviour: total value, frequency of page visit, etc. Take this as an example, when a new order is placed, if the customer’s total value is equal to $1000 or higher, add them to the loyal group. After that, the personalized price list for the loyalty group will automatically be applied to this customer. You can also customize your price list with the BigCommerce Customer Groups feature. However, this is only available for Pro plans onward. All in all, Atom8 significantly improves your personalized pricing strategy in just a few clicks. Check out the app on the BigCommerce app store today! By using Atom8, your business will no longer worry about management tasks.
BigCommerce Fulfillment Best Practices
For a new BigCommerce store owner, it can be frightening to understand the fulfillment world. Right from when a customer makes an order and when the order is processed, everything is important. You might not have considered how an online order ends at a buyer’s doorstep. It is never a one-way process as it involves different processes. The fulfillment process won’t be complete without this process, from the routing to the inventory management to choosing the right package for the lowest dimension weight. The components of the Bigcommerce fulfillment process include receiving the product, inventory, and order processing, shipping, and return processes. Best practices of BigCommerce Fulfilment Convenient warehouse location It doesn’t matter if you are not operating a brick-and-mortar store; you still need a convenient warehouse location for your store, besides the size of your storage space. You fulfill these orders in very important as it will contribute to the speed and costs of delivery. Since both fast shipping and affordable options are important for customers, optimizing your fulfillment based on the location of your customers would cost-effectively go a long way. For instance, shipping orders to Canadian customers from overseas can take a long time unless the customer is willing to pay for express delivery. Choose the right fulfillment model Choosing to determine how to fill orders depends on several factors, including products, order volume, and how you manage the orders. However, there are three methods to choose the right fulfillment mode for your eCommerce store. You can decide to do the in-house order, third-party fulfillment, or dropshipping. In the in-house order, the merchants complete every order without any third-party logistics provider or drop shipper. The third-party model outsources the packing and shipping to a company because they have run out of space. However, in a dropshipping model, the business owner never holds the item they sell on their website. The manufacture produces, stores, and ship the items once a customer places an order. Use technology Another best practice for your BigCommerce fulfillment is technology integration to your store. Software that allows you to integrate with eCommerce platforms and online marketplaces seamlessly can help manger orders through various sales channels without needing manual uploads or entering duplicated data. An automation app can assist you in sorting orders with different characteristics and notified the staff responsible for taking care of them. With technology, you can send tracking detail to the marketplace or platform and share them with customers. eCommerce businesses must take advantage of technology integration to connect to manufacturing and purchasing activities to provide accurate decisions. Plan for peak seasons Every eCommerce business loves peak seasons because it means more sales and revenue. However, for that to happen, you have to plan ahead of these seasons and stock products. At times, new store owners find it hard to determine the number of products they need during peak seasons. Here, you can use previous peak seasons to determine the number of items to stock. For instance, during the last Black Friday, how many people ordered a particular product? Where did most orders come from? Information like these can help you plan for future peak seasons.
