Do Customized Offers For Individual Customers Really Work?
Many companies are beginning to offer "customized deals" to help reach individual customers as they shop. This is especially true of customers shopping on the internet. Many e-commerce websites will provide special, personalized "recommendations" to customers or offer price-matching services to what other companies are offering.
While this may seem like a useful feature for a business to have, the real question is are customers buying into it?
The answer is really not a simple yes or no. It depends on the industry and the type of product being looked for. While 59% of global customers cite that they are out to find the thrill of a deal, others are more concerned with the quality of the product they are getting.
Price-Matching Days Are Over:
In the past, many companies have relied on price-matching software to help them find and secure the best deals. However, today, many companies and websites are getting more and more creative with how they market deals to customers. Rather than just offering rock-bottom price comparisons, many customers have taken to comparing prices while in-store on their smartphones. Simply look up the product and determine whether they are getting a deal or not.
Data Is Driving Consumption in a New Direction:
However, with increasing analytics technology today more and more businesses are able to not only determine what others are charging but are able to study the sales numbers behind those prices. This can help companies decide which items to price-match, which ones to drop prices lower than competition on, and which items to keep above the other prices. This technique of sales helps ensure that the price-matching companies do are actually helping drive profits up rather than helping their bottom line take a hit.
Many customers are also interested at in-store price matching. For example, if a company lists a product at a certain price online, consumers expect that that price can be matched in the store. This has led some companies to do away with online-only deals as customers want the product price matched even if they come into the store to see the product before they buy it.
Advertise the Right Products:
Analytical sales data is also telling companies which items customers are seeking most right now based on the sales of other similar niche companies. This helps the brand understand what items consumers are after. Offering sales on popular items is a great way to help bring initial business through the door. Once the customer is in the door or on the website, then selling other products becomes a much easier task. Many customers will buy what they wanted and leave, yet some others will pursue other items on the site simply "because they are already there".
Are the Days of Price Matching Over?
Price-matching can still have its place. Walmart successfully uses price-matching around the holidays to help drive customers to their website or to their stores. Price-matching may work great for large retailers such as Walmart, however, smaller businesses should be careful about advertising price-matching services, especially if it can cause their bottom-line to be deeply affected.
Price-matching is effective and can have its place even today. However, with the growing access to analytical data, there are other tactics that are also gaining a foothold in helping companies drive traffic to their websites and stores. The key is finding the combination that works in your niche industry and for your specific business. So, while price-matching is not completely dead, it is not a realistic tactic for smaller companies who cannot absorb the costs of price-matching on all products. As analytical data becomes more and more accessible, more ways to help customers save and help bring customers to your location via customized offers will increase even more exponentially.