27th February 201227th Feb 12Jon Billingsley2 Minute Read

Is Behavioural Pricing the Future of eCommerce?

Social media has come out of nowhere to become the most important marketing tool for online businesses. Could it possibly get any bigger?

It’s already a platform wherein thousands of brands are connecting with a potential audience of over 700 million people (according to official Facebook figures). It allows consumers to publicly recommend a business to their entire network of friends with a click of a button. This is brand awareness on a level previously never thought possible – yet many digital marketing experts are arguing that “we ain’t seen nothing yet…”

Savvy social media users are already likely to be using the hordes of data shared by their followers for market research purposes, but it has been claimed that many could soon use this information to determine their pricing strategy, a practice known as ‘behavioural pricing’.

Behavioural Pricing

Behavioural pricing is where retailers adjust the price of goods depending on who is buying them. It already occurs in certain areas of the high street, where retailers make use of data gained from loyalty card programmes or credit ratings.

Web entrepreneur, Alex Gannett believes that companies will soon be able to work out exactly what individual customers might be willing to pay for an item using information from social media.

In a recent interview for the Mail Online, he explained: “Online marketers have dramatically increased the amount of behavioural data they have on consumers. It comes from a complex network of web histories, demographic records, loyalty programs, and increasingly, social media profiles.

“This year will mark the end of static pricing. The use of your tweets, credit score and web history in e-commerce pricing is frightening – but ultimately unavoidable.”

Another Awesome Article: Live Chat Boosts Ecommerce Conversation Rates By 45%

The Future of Ecommerce?

Behavioural pricing could potentially revolutionise ecommerce by significantly increasing profits for online firms and the concept is not as far-fetched as some people may think.

Online businesses are already using information harvested in consumers’ computer ‘cookies’, such as previously-visited websites and purchased items, so that they can advertise only to certain demographics. Similarly, Facebook is beginning to introduce personalised advertisements based on what individuals share on their profiles.

Pricing goods based on this information would arguably make perfect business sense, providing marketers with the opportunity to convert already-interested parties into actual sales.

Staying Ahead

Becoming one of the first to use behavioural pricing online could result in firms being one step ahead of the game when it comes to profiting from ecommerce.

Businesses that are keen to keep up with this and the other latest trends in social media marketing may want to consider outsourcing their duties to a social media consultancy in order to do so. Many of these consultancies are staffed by a team of digital marketing experts who have the skills and experience to help businesses make their social media channels as profitable as possible.

Social media IS expanding and those who invest in the services of a social media consultancy may find it far easier to embrace this trend, preventing themselves from being left behind.

We Can Help

At Bing Digital, an eCommerce Agency based in the United Kingdom, we have a creative team providing Magento Services.

Find out how we can help you

If you would like to discuss the possibilities, why don’t you give Bing Digital a call on 0800 802 1206 . Alternatively, complete a contact form and we’ll be in touch soon.

Related Articles

Enhance User Experience with UX/UI Best Practices

In today’s digital landscape, creating a powerful user experience (UX) is no longer just a nice-to-have. It is a pivotal aspect of your product’s success. Let’s explore how you can enhance user experience with top-notch UX/UI (User Interface) best practices. Understanding UX/UI UX is the process design teams use to create products that provide meaningful and relevant experiences to users. UI is the graphical layout of an application. It includes the buttons users click on,

Read Full Article

Boost Conversions with eCommerce Optimisation

The eCommerce world is more competitive than ever. In order to thrive, it’s crucial to focus on conversion optimisation. By adopting a strategic and calculated approach, you can maximise the impact of your eCommerce platform and propel your brand towards its financial goals. Understanding eCommerce Conversion Rates To boost conversions, you must first understand what a conversion rate is. In eCommerce, it refers to the percentage of site visitors who complete a desired action, such

Read Full Article

Stay Ahead of eCommerce Industry Trends

The eCommerce industry is one of the most dynamic sectors of the economy, with new trends and technologies emerging all the time. Businesses that stay ahead of these trends can gain a competitive edge and drive growth. Let’s explore some ways to keep abreast of the ever-evolving eCommerce landscape. Stay Informed Staying current with industry news is essential. Regularly checking trusted eCommerce news sources, attending webinars and conferences, and participating in industry forums can provide

Read Full Article

Let’s talk…

We just need a few basic details about you and the team will be in contact, if you already have a project in mind then just select yes below and provide a few details to get the ball rolling.

Do you have a project in mind already?

(Required)

Speak to the team