Dynamic Pricing: How to Create Outstanding Customer Experiences
Bad pricing can ruin great ecommerce experiences
Delivering exceptional customer experiences is key to business success in today’s rapidly changing market. All industries compete to be the best. Many companies have made substantial investments to address the changing shopping habits and needs of buyers. B2B customers demand similar shopping experiences to B2C. They want simple shopping experiences, greater transparency and control over their buying process and quick responsiveness to all sales channels they use. This is consistent with B2C interactions. It also demands that companies respond quickly to changing needs.
ButWith the pandemic coronavirus and the rapid shift to digitalB2B companies are beginning to realize that slow pricing can affect their ability provide seamless customer service. In addition, customers are distrusting businesses’ offers due to a lack of market-relevant pricing. Most organizations are finding that customer expectations change too fast to keep up with buyer perceptions.The right price.B2B companies have trouble delivering winning buying experiences because of their siloed systems and manual processes.
Ecommerce: Dynamic pricing is more important than ever
COVID-19 imposed significant pressure on B2B relationships, disrupting the supply chain in many industries. The volatile environment created by reduced economic demand in certain sectors and higher demand in others has put severe pressure on pricing. This also puts extreme pressure on organizations’ ability to manage risk and ensure business continuity. This uncertainty, combined with the shift to digital channels, created a need for pricing discipline, better coordination across sales teams, agile pricing management practices, which could allow businesses to continue to provide excellent and fair customer service in an omnichannel world. Many businesses don’t have the skills to meet the demands of online selling as buyers shift more of their money to digital channels. The businesses that do leverage the vast opportunities ecommerce presents are empowered to drive accelerated sales workflows and consistent buying experiences across all go-to-market channels with the help of personalized, real-time pricing.
What is Dynamic Pricing?
Dynamic pricing allows businesses to set prices for their products and services based on current market conditions. This allows them to respond quickly to changes in the market caused by external or internal events. Prices are adjusted automatically using artificial intelligence (AI), machine learning, and other factors. With dynamic pricing, B2B organizations can reflect the perceived value of products in their pricing more easily to ensure that buyers receive real-time, market-relevant prices independent of the sales channel. Pricing teams can find it difficult to manually re-price thousands, or even millions, of SKUs across different regions and product categories in order to remain competitive. Businesses that use dynamic pricing are more efficient and effective in pricing calculations and execution, regardless of how complicated the selling situation.
When it comes to applying different sales tactics, dynamic pricing allows businesses to be more proactive when addressing market disruptions and seasonal trends, and to meet customer expectations in digital channels more efficiently. Dynamic pricing is a great way for B2B companies to increase sales and revenue in certain channels, especially if ecommerce conversions have fallen and inventory levels are high. It allows them to optimize their prices while still protecting their margins. Companies can adjust their prices and margins automatically at scale to maximize their profits and leverage higher market demand. Another example is fixing performance issues in online shops that slow down price information loading. This frustrates buyers and drives them to shop on competitor marketplaces. Dynamic pricing can be used to address this issue and ensure that ecommerce channels are able to respond quickly to price changes. Dynamic pricing can be used by businesses to encourage specific customer segments to buy more through digital channels. Optimizing pricing to match demand shifts can drive higher conversions and revenue, as well as ensuring the company makes the most of its profits while maintaining price attrition.
What drives perceptions of fairness in pricing?
A company’s success depends on its digital selling strategy. Buyers are shifting their wallet share to ecommerce, self-service portals, and ecommerce. Businesses can interact with customers via multiple channels, but buyers will convert through their preferred channel. This is an omnichannel world. Static list prices cannot reflect the value of those experiences and are no longer perceived as competitive or even acceptable, because buying preferences and market conditions are continuously changing.
Customer loyalty is built on fair pricing. Fair pricing is the foundation of customer loyalty. It is not based on emotions. Instead, consumers evaluate the value of an offer by comparing it with other sellers’ prices, past purchases, prices paid to other consumers and market demand and supply. Inconsistencies and price channel conflicts can lead to customers feeling unfair, which directly impacts customer experience and loyalty. Because consumers have changed how they shop and perceive value, the pandemic highlighted the importance of fair pricing. Imagine how loyal buyers who use an ecommerce platform that is owned by a company they are familiar with feel when they see unreasonable prices for products they have purchased from their sales reps. The simple answer is that the buyer will shop elsewhere.
Modern customer journeys require flexible buyer engagement strategies and real-time prices. There is also greater transparency in pricing and logic. The prices of exceptional omnichannel experiences correspond to both online and offline interactions, reflecting customer value and reasonable pricing. However, many B2B companies struggle to address channel flexibility and pricing rationalization effectively. This can lead to losing market positions and customer confidence and increasing the gap between price, channel, customer, product and price.
How Dynamic Pricing Helps You Drive Your Conversion Funnel
Customers can get personalized pricing via real-time delivery
B2B companies have new selling opportunities through digital channels. This allows them to plan and target their sales efforts more effectively. Because digital platforms allow companies to connect to new customers, increase customer loyalty and have lower operating costs, they are an efficient way to expand company’s global reach. Companies can leverage ecommerce to display individual contract prices and discounts, allowing existing customers to self-serve online for simple or repeat purchases, while leveraging sales reps for complex deals where high touch is more appropriate.
Digital mediums can also be a great tool for businesses to promote cross-selling and upselling. Buyers can get personalized AI-based pricing recommendations that will motivate them to increase their wallet share in other product and service categories. According to our research, 63 percent of B2B buyers claim that they purchase more from organizations that allow them to place orders in a self-serve fashion. Organizations must allow customers to place orders in self-serve channels. This will enable them to expand their ecommerce beyond static product lists with prices. These are key factors that will help you achieve your digital selling goals.
- Your dynamic pricing should be available at all times to shoppers without any downtime.
- Dynamic pricing must be able to scale with increasing demand in order to keep up with the rising volume of price requests for the online store during peak periods and holiday shopping season.
- Your ecommerce channel should offer dynamic pricing in real-time, optimizing the buying experience for customers and encouraging them to return to your site.
Real-Time Price Optimization for New Buyers
B2B businesses must be able to respond quickly to changes in variables such as costs, market indices and competitor prices. This will allow them capture more customers and keep their digital market position competitive. Pricing experts are often reliant on outdated and fragmented systems. This results in a slow and inefficient approach that is not as precise or fast as what ecommerce platforms and digital buyers demand. Pricing analysts need to gather market and competitive data and manually calculate and upload new prices across all channels.
How can you ensure that your customers receive the best prices, particularly during peak season? Businesses can leverage flexible pricing strategies that adapt to changing market conditions and buyer behaviour. They can also use AI to predict sales volume responses to possible price changes. This information can be used to dynamically optimize pricing to meet changing demand. This approach allows businesses to adjust their prices to optimize margins and maximize sales conversions through ecommerce channels. Smart pricing optimization and real-time price calculation ensure that the correct price is displayed every time, in accordance with each customer profile, market conditions, and business strategy. This strategy ensures that customers have a pleasant buying experience through ecommerce channels as well as self-service portals. It also increases their satisfaction with your service by increasing their basket size and their online reviews.
Harmonization of Pricing Across Channels
B2B companies must engage with customers and new buyers in a highly competitive market. Teams must work together and coordinate their operations to deliver consistent buying experiences. This includes pricing, sales, and online shopping. Ineffective or unprofitable sales, as well as low or no adoption of digital channels among buyers, can all be caused by misalignment between these three functions. To achieve your business goals, it is crucial to strengthen interdepartmental cooperation. Pricing plays an important role in this process. Your direct sales, resellers, ecommerce, and other sales channels will all be able to compete for the same customers if there is a rationalization of pricing and effective coordination. Harmonizing pricing strategies between traditional and digital channels is crucial because it eliminates channel conflicts and pricing differences that can lead to lower revenues, erosion in profitability, and compromised customer relationships.
Businesses can use a single source of pricing truth to manage, optimize, analyze, and manage their tactical and strategic pricing initiatives. This will allow them to improve commercial operations and customer experience across all channels. The pricing teams can better analyze all aspects, including regions, products and customer segments. They can then apply this information in real-time to drive digital business decisions as well as dynamic price strategies. Your business will reap the benefits of having empowered ecommerce executives who can play a greater strategic role in your company’s long-term success.
Dynamic pricing: Your business’s most powerful lever to grow profitably
Pricing consistency and execution excellence are the main obstacles to great omnichannel purchasing experiences. To empower B2B companies to drive more conversions and increase adoption of their digital sales channels, PROS Platform for Pricing fully integrates with all leading ecommerce platforms, instantly delivering the right transactable prices to buyers and enabling them to seamlessly and effectively purchase online, even for the most complex buying scenarios. B2B companies can execute a coordinated, real-time pricing strategy across all sales channels by centralizing all data, optimization logic and business rules. This drives profitability and ensures that customers have great shopping experiences.