“He who owns the information, owns the world,” W.Churchill.
Selling goods through the Internet has become one of the most important directions in sales ages ago. Doesn’t matter whether a business is presented online or offline, there are various tricks that use different sales techniques to sell more goods. This article lists some of the ways Magento shops could implement sales tricks. We’ll focus on the technical implementation of sales and pricing strategies.
Retail sales techniques and eCommerce strategies
Basically, all the same strategies we use in retail can be applied to eCommerce. However, they require some transformation since eCommerce has certain technical specifications. The tech overhead is totally worth it though, because by exploring and predicting visitor behavior businesses will be able to build conversion-oriented processes.
Table of contents:
Goal: make a unique selling proposition.
This approach was developed in 1975. By 1983 Electronics magazine called solution selling as “an unmistakable trend in the distribution of systems-related products”.
From then on, nothing has changed. The technique implies a value-added selling principle aimed at the pre-design of the product and its problem-solving features. Such strategy is used by companies following trends of environmental awareness, natural materials, an other sustainable development missions.
Solution selling method promotes not only a ready-made product but also a custom option that any customer can tweak. Alongside with that, offering a solution, salespeople focus on the client’s problems that the solution is supposed to solve. So in eCommerce, this strategy could be implemented as personalized features helping the purchaser take an already-packed product.
An online clothing store. A customer wants to buy a unique t-shirt, with special parameters (emblems, titles).
The store can propose an online constructor on its site to help the customer form the order completely suit to the preferences. However, the constructor can depict not only typical parameters as size, color, model but also opportunities to attach a custom print, title or something else. The similar online designer was developed by Onilab for brightstarkids.com.au. However, the feature may be more detailed and elaborated by covering any customer needs to make the whole process perfectly customized.
Aim: to motivate the customer to do something for your business promotion.
This tactic assumes that the buyer will be willingly involved in the marketing process and will be glad to contribute to the brand development. Of course, at first sight, it sounds implausible. Indeed, why the buyer will spend time on it! However, this sales approach works so trickily that the buyer doesn’t even think that actually works for your business.
The principle of this approach is that any activity of the buyer for promoting the brand will be encouraged. This can be implemented with sharing buttons on the online store and plain-old Instagram hashtags, which allows consumers to form their own brand stories. Engaged users will be awarded. For the example, consider the picture downer from the Public Desire website.
Technically, this can be implemented through the user’s personal account, logged in via Facebook. So, any activity on the site is integrated with the user’s personal account where the user will see awarded bonus points, which can be exchanged for a discount. We at Onilab have implemented for our client a scrolling Instagram block on the main page of the website of the online store, tied to the hashtag. Buyers shared in their Instagram accounts their purchase experience, including popular bloggers and opinion leaders. The ability to get to the home page of the popular brand warms buyers on the activity.
Aim: to form loyalty customer groups for enhancing brand awareness.
This method implies face-to-face sales. In real practice, a salesperson meets a potential purchaser and offers a closed proposition. In eCommerce, it works automatically. By the way, Magento Commerce Edition has such an in-built opportunity: the platform provides the feature of making customer groups and conducting closed sales within them.
A store practices season and festive discounts. The activities can be aimed at all customers or only for chosen groups. For instance, a group of gold discount card holders, a group of customers having bought products for above the definite sum of money.
The personal selling approach is implemented in the personal account on the online store. For example, Magento CMS suggests the feature in the dashboard as follows.
The groups of buyers participating in closed sales are set up in the admin panel of the store. Invitations to internal auctions or sales are displayed in the personal accounts of users. Notifications can also be sent to different channels specified by users: e-mail, SMS, messengers, and others.
Aim: to sell a more expensive product.
One more selling method is used to persuade purchasers to upgrade the current product. The salesperson either offers an advanced version of the chosen item or suggests extra items that make the product more functional.
A customer considers a mobile phone on the product page. From the one hand, a block of related product includes products of wider functionality according to custom basic parameters chosen in the filter form. From the other hand, the block can offer any trivia to upgrade the dummy product – for instance, memory cards for the mobile phone. In case of a clothing store, it seems difficult to realize what clothing items are suitable to use in the next level because, speaking about apparel, the approach pretty reminds the cross-selling tricks.
In terms of web design, it is not too tough to implement a block of similar products. The main idea is to offer products of a higher level.
Aim: to sell as many products as possible.
Cross-selling works in the other way, promoting products from the other category. The main purpose of the method is to sell more goods in different categories.
In the case of the aforementioned example with the mobile phone, the store can cross-sell various covers, stickers, screen overlays and so on. In the case of the clothing store, merchants can offer any products to customers buying, for instance, a warm coat. However, in some niches, this approach has no differences with up-selling.
The implementation is pretty simple. Just a block of products the customer could consider as well in addition to the chosen one. For example, a top-seller block attracts with the opportunity to look at the most popular product, but, nevertheless, they belong to different categories.
Aim: to make a product affordable in order not to lose the customer and to gain profit from the customer anyway.
In other words, marginality, by all means, is a leverage. The method emphasizes that each client is necessary and the purpose is to gain benefit from every client. The selling technique is aimed at promoting the product for the less price but with the higher possibility to sell. It is used when the customer wants to buy the product but hesitates. Then, stores suggest the same product with step-by-step growing discount in order to keep the customer.
The principle of down-selling implies two ways: either the seller reduces the cost of this product, or offers another product of a lower price category. Let’s consider these two situations on the eCommerce example which our developers can perform. A customer visits a product page and leaves. At this moment, a pop-up occurs, and the customer sees products with discounts – a chance to stay a bit more and to choose something else. There is another situation. The visitor often looks at the page of a certain product, but still hasn’t bought it; so, the visitor gets a notification with an offer to buy this product at a lower price. The notification can also be implemented as just a pop-up with a personal link, for example, referring to a closed product page with a discount. This implementation also reminds private selling.
To implement such algorithms on the online store, you need to integrate web analytics services and your store’s CMS.
Increase online sales
It is not necessary to reinvent the wheel to be called an innovator, if the old wheel can be just slightly upgraded, adjusting to the requirements of modern society, and fasten the gyroscopic levitation engine. This is the fact that you can adapt the old methods that have worked perfectly to the new form. Retail was an old form. Many brick-and-mortar stores are striving to get an online version or completely go digital. However, business processes and interactions with customers remain the same – now they just need to be transformed onto the virtual platform. This is what we at Onilab do – you can read about all our integrations on the service pages.