Every online business has the same goal—make money…preferably lots of it. But motivating customers to part with their hard-earned dollars isn’t always easy. However, there are certain selling techniques that have been proven to prompt customers to spend more money.
Let’s look a bit closer at 3 simple techniques for increasing your eCommerce profits.
1. Dynamic Pricing
At its core, the idea behind dynamic pricing is pretty simple—increase the price of your most popular items. That’s supply/demand 101. But there is a deeper level of dynamic pricing that takes the concept much further. It centers on having an eCommerce site that can automatically change the price of an item based on a customer’s activity.
For example, when a customer leaves an item in their cart or requests a quote during off-peak hours, your website should be set up to offer lower prices (or throw in additional incentives like coupons or free shipping). But, you say, why would I ever offer a lower price? Isn’t the idea to make more money? Think of it this way…would you rather have a customer buy an item/service that nets a lower profit or have one that leaves your site altogether giving you no profit?
If you’re not willing to lower your prices, this next option might make you feel better. Use customer information—also known as a data trail—to determine how much to charge. Your site should be set up to capture as much customer data as possible. Things like email addresses, previous purchases, dollars spent, where they live, browsing history, and more. It may take time to build your data warehouse, but it’s well worth the effort when you’re able to utilize the data in your pricing structure. Consider this example about Orbitz—the online travel and booking site. They found that individuals who searched their site on a Windows-based device weren’t willing to spend as much as those who searched from an Apple device. Guess what Orbitz did? They charged the Apple-based users more.
2. Limited Time Offers
Remember this phrase—Customer procrastination is the enemy of sales. In the world of selling online, nothing limits your sales success quite like a customer who wants to wait a little longer to make their purchase. If they leave your site to mull over their decision, you’ve got a lot of work to do to get them back to their shopping cart. This is where limited time offers can come in handy. Essentially, you are giving your customers incentive to buy right now. Here’s how it could work—shortly after a customer places an item in their cart, a pop-up shows on the screen offering greater incentive to buy immediately. The offer could come in various forms—a percentage off of the final price, free shipping, a coupon for future use—but the key is to put a time limit on the incentive. For example, “Get free shipping on this order if you buy right now.” Or “15% off your next order if you buy within the next 10 minutes.” The options are endless.
Cross-selling is one of the greatest ways to increase the value of your online orders. Here’s how it works. Let’s assume you sell pool supplies. A customer visits your site and adds a winterizing kit to their shopping cart. The kit they ordered includes only the chemicals. One logical cross-sell here is to ask if they would like an upgraded kit that includes air pillows and pool cover clips.
Here is another example. We recently ran a test at BestBuy’s website. We added a random laptop to our cart and within seconds were shown a pop-up menu that asked if we were interested in hardware protection, Microsoft Office, wireless mouse, printer, bag, and flash drive. BestBuy understands the value of cross-selling.
It’s important to note, however, that the key to cross-selling is to offer items that make sense. In the pool supplies example, it would have been silly to ask if the would like a new pool liner or a heater. In the laptop example, there would be no need to offer a phone charger or video game, even though BestBuy also sells both of those items.
As you think about boosting your online sales, don’t leave your success to chance. Take advantage of proven techniques like Dynamic Pricing, Limited Time Offers, and Cross-Selling to motivate your customers to buy more and boost your profits.
To speak with a professional about earning more profits with smart web design, contact DotcomWeavers at [email protected] or 888.315.6518.