Pricing and marketing strategies
Considering that we will be competing directly for the same conversion vs. competitors, the price will be one of the fundamental pillars of our marketing strategy.
Knowing in advance our competitive situation with accurate data on the table regarding our pricing and that of our direct competitors will allow us to develop more aggressive pricing strategies.
The data gives us an advantageous situation to have room for manoeuvre and try to achieve the highest percentage of conversions possible. It will also allow us, for example, to know where to make the greatest investment efforts in our paid marketing campaigns, maximising the possibility of success.
What sense would it make to invest aggressively in PPC campaigns when our price is not competitive? Without having carried out a pricing study beforehand, it is likely that we would be wasting money as well as potentially damaging metrics such as conversion rate and other more intangible metrics such as brand recognition associated with our website, for example.
Pricing not only affects inbound marketing strategies but in marketplaces such as Amazon, the conversion rate will have a direct impact on organic positioning. That is to say, deriving traffic to a product with an uncompetitive price can make the CR (Conversion Rate) of that file get worse, wasting the budget of the PPC campaign on Amazon Ads and collaterally affecting negatively our organic positions.
But let's look at it from the opposite side, if we opt for a more aggressive PPC strategy when we know that our price is competitive we can create more efficient marketing campaigns and consequently improve our internal metrics and organic positions. In this way, we create a constant wheel of improvement based on conversion, where the price is one of the fundamental axes.
In short, take care of your brand and service but never neglect pricing, it is a much more dynamic variable with more measurement work than is usually done and its proper management can be really decisive in your business and its success, both for those decision-makers of PVR's and for those who sell to the final consumer.
Having a price monitoring tool like Flipflow will help you to build the right pricing strategy, and to have full control of your brands, competitors and the market in an easy, agile and dynamic way.