Category: Featured-Post-ConsultingMarketing

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Featured-Post-ConsultingMarketing Social Media Marketing (SMM)

Smart and Competitive Pricing in Social Commerce

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Smart and Competitive Pricing in Social Commerce

Competitive Pricing On Social Media

Social Media Commerce has become very popular lately, so the competition grows drastically by shorter periods of times. In one of our articles we discuss the Social Media Marketing strategies in more detail. Now, let’s review the pricing strategies that work well with this type of commerce. It’s tough to figure out what is the right price for your product, especially when you’re emotionally attached to it, but to work in numbers we will need some research.

What Is Competitive Pricing

This type of pricing strategy is market-oriented. To put it more simply, as accompany/brand you consider the prices of other companies on the market which have similar products as yours and via research you figure out the right number to choose. Or maybe it would be more correct to say-strategically correct price. It also depends on your communication and how you present your product to the target audience quality wise. The same principle goes for pricing of services.

Three Pricing Basics

In the pricing strategies, we have three basics:

  • Low Pricing-Serves setting prices lower than your competitors.
  • High Pricing -Serves setting prices higher than your competitors.
  • Matched Pricing-Serves setting prices almost similar to your competitors.

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Tricky Pricing Analysis

As companies, you might not have the luxury of changing your pricing too frequently just to analyze the results. Sales are quite difficult to play around with. Especially, considering the fact that you have a base of loyal customers which will definitely notice, when the prices pop up and down all too often. With price analysis you figure out the reaction of your audience to these changes via creating polls for example. Of course it will show on repetitive purchase statistics as well.

Wrap Up The Product

Now, as we see-customers don’t really love constantly changing prices. So, here comes the question-what do we do to figure out profitable pricing without losing the customers’ trust? You could try wrapping the same product in a different skin and selling it for a different price and see if a customer prefers the old or a new version of the product. Don’t forget, that selling quantities are just as important. You don’t want to have only a couple of items sold instead of a dozen. Losing the customer base simultaneously.

Over And Under Pricing

Brands tend to make huge mistakes by over and underpricing their products. This can lead to the sales collapsing into dust. We don’t really want that to happen. So, how do you know when you’re crossing the red lines of too much and too little?

Keep in mind, that depending on your brand’s voice and target audience, certain products can seem too unaffordable or too cheap to be true. There is something you can call the “Defeated Mindset” when it comes to underpricing.

The brand thinks that the customer will resort to cheaper options even if they offer a high-quality and well-marketed product. This is where underpricing happens and the product just seems too good to be true for the given price, which raises suspicions about quality and fails to sell.

Another mindset which happens to be due to lack of analysis, pushes the brand to think only about high profits. In this case the team just doesn’t take into account the general income of target audience.

They start to think-it will sell even if the product costs more than my customers’ salary of a whole quarter of the year. Obviously the customer might get very upset about the pricing and resort to mid-priced products that work for similar occasions.

Bidding And Sales

To stay competitive on the market, sometimes a brand has to offer their customers a chance to buy high-end product in their range for more mediocre pricing. If your brand wants to be affordable (not cheap) sales or biddings are a necessary, part of your pricing strategy. Amazon giant and E-Bay are great examples of how well bidding and seasonal sales work. Even when the sales say “UP TO 70%” it still sounds like Christmas for the customer.

What We Offer

For more interesting articles make sure to scroll through our Publications on Edana. And, don’t forget to check our services for professional assistance from your Swiss Digital Agency. Our expertise includes Marketing Strategy & Plan and many more. Feel free to contact us anytime!

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Digital Consultancy & Business (EN) Featured-Post-ConsultingMarketing

Which Marketing Strategies Work for Loyal Customers?

Which Marketing Strategies Work for Loyal Customers?

Loyal Customers

Businesses put a lot of effort into acquiring new clients, which is understandable,  but maintaining those with whom you already do business is crucial. Loyal customers are always on your side and they genuinely care about the brand. They tend to stick with your company through tough times or fierce competition.  This alone is a compelling incentive to prioritize customer relationships and consider strategies to nurture them through customer experience, marketing, and loyalty programs.

Research The Needs

In order to understand how loyal your customers are you need to do some research. If you want to enhance their loyalty to your brand, you have to show appreciation.  If you want people to constantly choose you, you need to cherish them, listen to their feedback, and respect their opinion.  Positive customer experience fosters a lasting relationship between a buyer and a company. Building trust can be hard work, but it will definitely pay off.

Net Promoter Score – NPS

NPS was created to evaluate consumer loyalty in 2003.  It is currently used by millions of organizations to measure and track how their consumers view them by asking a key question and grouping the answers into Promoters, Passives, and Detractors.

Repeat Purchases

Repeat purchases are made by existing clients. These buyers are fairly familiar with the brand and A track record of consistent purchasing is an essential criterion for assessing loyalty.

Engagement Levels

The notion of consumer interaction did not completely arise until the digital era. As two-way contact between customers and brands increased through internet platforms, engagement became more frequent and noticeable. A customer’s relationship with the brand based on their activity might indicate that someone is personally invested in the company. Customer engagement scores may be calculated in a variety of ways, but combining the frequency of usage, time spent, and specific actions completed can provide you with a single measure that you can analyze over time.

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A Customer Loyalty Program

After evaluating and understanding how engaged your customers are, it is time to shift your effort into encouraging lasting relationships. Rewarding loyal customers is one of the best ways. It shows that the company sees them and appreciates their trust. This can be done by offering discounts or exclusive deals. Any kind of benefit will have a positive impact on your client’s relationship in the long term.

Pick The Right Program

Not all loyalty programs are the same. While some of them reward customers, the mission-driven customer loyalty program makes a client feel like their purchase matters and it makes a difference. It might be more productive to collaborate with a nonprofit organization that shares your objective. In the end, every single one of them encourages people to spend more money and stay loyal. Refer-a-friend is a type of customer loyalty program which brings your business new clients and rewards the loyal ones with certain benefits.

Engage Customers On Social Media

Social networking is an excellent method to connect with your customers.  Posting at the right time and sparking a discussion, while balancing your feed with engaging content can help your brand stand out. Customers will be motivated to be loyal to a brand that listens to them and shares the same values.

Research The Methods

There are several methods to communicate with your clients on social media; be creative and attempt to find what will not only catch their attention but also entice them to repost or revisit in the future. With over 100 million videos viewed on social media every day, videos are an excellent method to engage your audience.

Encourage Customer Feedback

The constant feedback allows businesses to customize their services and products to client requirements. It also demonstrated that you value their insight and are willing to improve. You must first be loyal to them and it will encourage your customers to stay loyal to your brand.

Listen Closely

When you listen to consumers and make a point of addressing their concerns, it establishes a special bond between you two. The company can not please every single customer, but by using assessment methods and taking the necessary steps to acknowledge their demands, you stand out. All people want at the end of the day is to be heard, understood, and appreciated.

What We Offer

For more articles from our experts on loyalty and digital strategies, feel free to browse our publications on Edana. If needed, we offer our expertise to help you in your projects. Feel free to contact us at any time!

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Featured-Post-ConsultingMarketing General Web Agency

A Complete Guide to International Marketing Strategy

A Complete Guide to International Marketing Strategy

International marketing means to apply marketing principles to the product for international promotion.

Nowadays the distance is not an issue and you can promote your products worldwide. Due to enormous demand there are several reasons why businesses are attracted to the international market:

  • Increase of economic sales
  • Huge market share
  • Huge profits
  • Untapped international marketing
  • Elongated product life

International marketing has its own characteristics:

  1. International marketing has no boundaries and everything can be obtained easily
  2. There is an intense competition due to high demand
  3. There are many factors that you can’t control, like political or geographical and the only solution is to adapt to the environment

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Type of customers in international market

Before you decide to enter an international market, you need to do some research about your customers, since foreigners may have different buying habits and preferences.

First of all you need to find out what they prefer, create marketing strategy and then present your product.

Customers are not the only thing that you need to consider when entering international market. There are some challenges you will have to face, for example:

  1. Traffics

You need to consider the fact that taxes and duties imposed on guest companies may be different from the local ones and sometimes they can be really high so it would be challenging to make profits there.

2. Politics

When entering the market you need to consider political stability since it plays a huge role in international marketing and directly influences on the success.

3. Slow growth of development markets

Developed markets are currently facing slow growth but in several regions such as Asia, Africa and America, are facing the growth of development.

4. Growing competition

Since the market is huge, the amount of companies are big and it continues to grow rapidly, you need to focus on expertise to succeed.

5. Different exchange rates

Every country has its own economy and currency, so for trading purposes you need to exchange the rates.

6. Culture

Every country has its culture. It is an important factor to consider, since one thing that is acceptable for one nation does not mean it will be accepted worldwide. You need to consider each and every one of them individually and apply it to your business.

There are several ways you can overcome an international barriers:

  • Choose a market that has a low trade sanctions and develop new products
  • Choose value-added activities like after-sales, which is not subjected to tariffs
  • You can do export but do not do import , instead try to do your own manufacturing locally
  • Get government subsidies, which will add appeal and will justify increased prices
  • Try to do partnerships with other companies
  • Stay for short term, since you never know when political situation will change

Conclusion

When entering global market you need to consider several things. First of all, you need to follow their regulations. Then you have to do some research, identify what the locals are missing and find how your product can address those issues. Do not forget to consider their culture and language barrier. Be prepared for everything beforehand for this to be successful on the competitive international market.