Online Sales
Online Sales
Retailers are obsessed with pricing as it is often their only competitive advantage. However, this does not mean that retailers cannot attract customers and increase sales using other strategies.
Retailers are obsessed with pricing as it is often their only competitive advantage. However, this does not mean that retailers cannot attract customers and increase sales using other strategies.
Pablo Pérez, a researcher at Google, studied how consumers decide to purchase a product and found that they are very open to switching between retailers, even if they have a strong preference for a particular brand. The study simulated 120,000 shopping scenarios with 1,000 people, and only 25% of consumers were willing to switch to their second-choice product. In contrast, 47% of people were willing to switch to their second-choice retailer. Pérez identified that retailers can use a range of alternative strategies, other than discounts, to attract customer attention and increase sales.
Pablo Pérez, a researcher at Google, studied how consumers decide to purchase a product and found that they are very open to switching between retailers, even if they have a strong preference for a particular brand. The study simulated 120,000 shopping scenarios with 1,000 people, and only 25% of consumers were willing to switch to their second-choice product. In contrast, 47% of people were willing to switch to their second-choice retailer. Pérez identified that retailers can use a range of alternative strategies, other than discounts, to attract customer attention and increase sales.
By showcasing good customer reviews, such as 5-star ratings, or offering fast delivery, gifts, authority bias, or key product specifications, retailers can persuade customers to purchase their products.
By showcasing good customer reviews, such as 5-star ratings, or offering fast delivery, gifts, authority bias, or key product specifications, retailers can persuade customers to purchase their products.
Pérez's research found that simply communicating the benefits of buying from a store using these behavioral science principles can have roughly the same power as a product discount.
Pérez's research found that simply communicating the benefits of buying from a store using these behavioral science principles can have roughly the same power as a product discount.
Pérez recommends that retailers should optimize search ads with the consumer journey in mind, to highlight what customers care about, as an ad at the top of Google search is a great start to get noticed and drive sales.
Pérez recommends that retailers should optimize search ads with the consumer journey in mind, to highlight what customers care about, as an ad at the top of Google search is a great start to get noticed and drive sales.