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16
Jan, 2024

10 Of The Most Inspiring Advanced Dynamic Pricing Ideas

In today’s highly competitive market, businesses are constantly looking for new and innovative ways to boost their sales and stay ahead of the competition. One strategy that has gained a lot of attention in recent years is dynamic pricing. This is the process of adjusting prices based on demand, inventory levels, and other market factors. While the concept of dynamic pricing is not new, advancements in technology have opened up a whole new world of possibilities for businesses to implement creative and effective strategies. In this blog post, we will explore 10 of the most inspiring dynamic pricing ideas that are being used by businesses to drive sales and increase revenue. We will also show our readers how to create the appropriate rules in the Advanced Dynamic Pricing plugin.

Personalized Pricing

With the help of big data and analytics, businesses can now personalize their pricing strategies for individual customers. By analyzing customer data and purchase history, businesses can offer customized prices to each customer based on their preferences, spending habits, and other factors.

The simplest example is to give a discount based on the user’s role.

Create a rule (blank). Specify the role in Conditions section. In Product dicounts section choose the type of discount and its amount.

Time-based Pricing

This strategy involves adjusting prices based on the time of day, week, or month. For example, prices for a hotel room may be higher during peak tourist season compared to the off-season.

Let’s imagine that you are the owner of a restaurant. You began to notice that on weekdays in the afternoon hours (1-4 p.m.) there are fewer orders than at other times. Create a discount by date and time!

Create a rule (blank). Specify days of week and time (from 1 p.m. to 4 p.m.) in Conditions section. In Product discounts section choose the type of discount and its amount.

Location-based Pricing

Location-based pricing takes into account the geographical location of customers to determine prices. For example, a ride-sharing app may charge higher prices in a busy city center compared to a less busy suburb. This allows businesses to adapt their prices to local market conditions.

Setting up a pricing strategy by location is very easy. Follow these guide:

Create a rule (blank). Specify shipping zones in Conditions section. In Product discounts section choose the type of discount and its amount.

Limited Products

Limited edition products often generate a lot of buzz and demand. Businesses can use dynamic pricing to adjust prices for these products based on demand, making them more exclusive and desirable for customers.

Using the plugin, you can create a rule by tag (for example, the Limited Edition tag).

Create a rule (Product discount type). Specify Tags in Product filter section. Choose the type of discount and its amount in Product discount section.

Flash Sales

Limited-time promotions or flash sales can create a sense of urgency and encourage customers to make a purchase.

Don’t know how to show a timer on a product page? Add an Advertising block (ссылка) to your rule!

Note: Be sure to include the date range of your rule.

Related Products

Let’s imagine that you have a clothing store. You have been on the market for a long time and have identified a general pattern – in more than 20% of jeans purchases, cuscromers wanted to purchase a belt to go with them.

How to increase this percent? Start a “buy jeans and belt at a discount” company.

Solution via Advanced Dynamic Pricing for WooCommerce:

You can create such a rule in several ways.

  1. Create a rule (Product discount type). Specify Product type in Product filter and select, for example, hoodie. Add a similar filter, but select sunglasses. In Product discount section check Split flag. Enter a percentage discount for the second item.
  1. Create a rule (blank). Add Product filter section and specify Product type. Choose, for example, a hoodie. Add Auto add to cart section. Select sunglasses and enter its discount.
  1. Create a rule (BOGO (free) type). Specify Product type in Product filter and select, for example, hoodie. In Free products section, select sunglasses.

We show you the gift option because it has the benefit of being visible on the product page.

Encourage to buy more

For example, you own a jewelry store and your main goal is to sell as much product as possible. But time passes, and there are no sales. What to do?

Let customers know that they will receive a discount for their volume of orders.

Create a rule that gives customers a 10% discount if they have made more than 5 orders in the last 6 months.

Payment-based Pricing

It happens that your store does not have an offline point of sale. Then it makes sense that your priority would be to keep your revenue in digital form. In addition, it is safer for you if the buyer pays for the goods immediately. However, not every customer is ready to agree with this.

Encourage them to pay online and immediately. All you need for this:

Create a rule (blank). Add Product Discounts section and enter a discount. Add Conditions section, select the Card payment method and the method itself.

Organize a contest or giveaway

It’s no secret that contests increase brand awareness and attract new customers. Organize a giveaway on a social network (for example, Instagram) or on your store’s website. Determine the lucky winner and give him a discount as follows:

Note: check Once in Can be applied to limit the customer.

Get customers to be active

What increases the status of a brand in the eyes of other buyers? Only reviews from customers like themselves!

We are not suggesting that you generate reviews; instead, encourage customers (both new and old) to take a targeted action on the site. It could be:

  • Like
  • Filling out the form
  • Writing a review

Such activity benefits both newly opened businesses and those who have been on the market for a long time.

Give a coupon to everyone who is active. Create a rule (example below) and send a coupon to the subscriber by email.

Or you can use the link through which the coupon will be activated automatically.

All you need to do is:

  1. Go to Settings>Coupons and tick “Enable “Activated by coupon” links” option.
  1. Enter the coupon name in the field at the top of the rule.
  1. Copy the URL by clicking the button next to it.
  1. Send an email to the lucky winners with this link. They will see the following message if they click on the link.

In conclusion, Advanced Dynamic Pricing for WooCommerce is a game-changer for businesses looking to optimize their pricing strategy and stay ahead of the competition. With these 10 inspiring ideas, businesses can take advantage of dynamic pricing and drive more sales, increase profits, and attract and retain customers. As technology continues to evolve, we can expect to see even more innovative and inspiring Advanced Dynamic Pricing for WooCommerce ideas in the future.

20
Nov, 2023

4 Things You May Not Know About Advanced Dynamic Pricing for Woocommerce

Are you looking for a way to stay ahead of the competition in your e-commerce business? Advanced Dynamic Pricing for Woocommerce may be the answer. This powerful tool allows you to set dynamic pricing rules that automatically adjust prices for different customers, products, and even days of week. Here are four things you may not know about Advanced Dynamic Pricing for Woocommerce.

Note: this features availible only in pro version.

Category Page

You can use Advanced Dynamic Pricing for Woocommerce to customize your category page to make it look more attractive to buyers. For example, show the starting price of a product (without a discount) or change prices when updating the cart.

All you need to do is go to Settings >Category page and enable the required options.

Advertising

Retailers can use Advanced Dynamic Pricing for Woocommerce to offer discounts and promotions that are tailored to customer preferences. For example, you can create a rule and add a promotional message with a timer. It is also possible to specify where the advertisement will be visible (cart, product or category page).

These options are located in Settings>Advertising.

Calculation

The pro version of the plugin also offers various pricing settings. You can choose how to calculate the shipping cost – apply only the maximum discount (Maximum value), only the minimum discount (Minimum value) or the sum of discounts (Sum of all discounts), or how to calculate the application of a discount to a product. And also combine several discounts or several commissions.

Product Collections

Product collections are not a list of products, as you might think. This is a system of conditions for categories. Thus, when you create a collection, you specify that the product must belong to all categories within it in order for it to be subject to the pricing rules. Let’s imagine a situation – you want the discount to apply only to women’s clothing. If you set such a condition in the usual way (in the product filter specify the categories For women and Clothing), then the rule will apply to all products for women and all clothing. However, by setting these categories in the product collection, you only have a discount on women’s clothing.

These are just a few of Advanced Dynamic Pricing for Woocommerce advantages available. By taking the time to understand this tool and how to use it, you can optimize your pricing strategies and maximize your profits. If you’re a Woocommerce store owner, it’s worth considering this plugin to get the most out of your store.

25
Dec, 2023

Creative Ways to Use Advanced Dynamic Pricing to Boost Sales in Your WooCommerce Store

Advanced dynamic pricing is an innovative and ever-evolving pricing strategy that is used by businesses to maximize profits and competitiveness. As the name suggests, dynamic pricing involves changing prices based on market conditions and customer demand. This strategy can be incredibly effective in increasing revenue and profits, but it requires a lot of creativity to be successful.

Why should creativity be a top priority?

The human brain processes visual data 60 thousand times faster than text. Therefore, creative ads allow you to convey information about your brand and products to customers more effectively than just text.

Creative advertising:

  • attracts the user’s attention to the ad;
  • supports or explains the text message, if any;
  • talks about a brand or product, creates a suitable image in the eyes of potential customers;
  • evokes emotions that influence purchasing decisions or become associated with the brand;
  • encourages consumers to take the desired target action: go to the website, place an order, leave their contact information or otherwise interact with the ad;
  • helps you differentiate yourself from competitors and highlight your advertising campaign.

Techniques for creating interesting advertising

Interesting advertising is most often created using tropes. Tropes are a concept from literature that denote the expressive means of language. Tropes include metaphor, hyperbole, allegory and others.

At the heart of any marketing campaign is concept. A concept is not just an illustration of an object; the emphasis is on its characteristics. Creative advertising of services and products should demonstrate the competitive advantages of the product.

Therefore, attention should be focused on a couple of advantages and talked about them using tropes. The rule is: for each property – one trope. How it works will become clear from the following examples.

Exaggeration (hyperbole)

The Nikon S60 camera promotion used exaggeration. The main feature of this technology – the face detection function – was chosen as a competitive advantage. Nikon marketers exaggerated this property: the poster shows how the camera recognizes, in addition to humans, the figures and faces of ghosts in a hotel.

Obviously, the new Nikon model cannot recognize ghosts, especially as demonstrated on the poster, and the very question of the existence of ghosts is controversial. However, the goal of the campaign was achieved: the advertisement turned out to be unusual and catchy.

Understatement (litote)

It turns out that not every advantage of a product is important to exaggerate in order to get attention. You can go backwards and downplay the shortcomings. Or turn properties undesirable for the buyer into almost advantages using a trope called litotes.

Siemens has an advertisement that shows that the new model of vacuum cleaner is so quiet that it does not distract from watching the opera. Of course, this is a clear understatement. But the idea itself is interesting and creative.

Comparison

This trope involves comparing one object to another based on their common properties. In advertising, a product is compared with an analogue. Since the promoted product looks better than the abstract product, it creates the feeling that it is better than all competitors.

A well-known Duracell batteries used comparison in advertisement, which compares the operation of a toy on two types of batteries. Of course, devices run longer on Duracell than on conventional batteries. Advertising slogan: “Duracell – nothing lasts so long.”

The above image is considered one of the most successful in the history of creative advertising. It has been used with constant success for several decades, demonstrating the main property of batteries – durability. Moreover, it does this in an ironic and visual manner.

Metonymy

This technique consists of designating an object through its attribute or another closely related object. An example would be an advertisement for baby diapers that shows parents sleeping peacefully. This restful sleep is a metonymy for excellent quality diapers, with the use of which the child sleeps for a long time and allows mom and dad to rest.

Metonymy is one of the important advertising tropes, despite the fact that it is not a direct tool with the help of which an image is created.

It is obvious that ideas for non-standard promotion are the product of hard work, the ability to use special tools and the result of the correct presentation of the main characteristics of the product. The main thing is to correctly highlight competitive advantages and know the tools to interpret these properties so that you get the most creative advertising.

What rules should you use to increase your brand awareness?

Try creating your own marketing company in an unconventional way. Our plugin Advanced Dynamic Pricing for WooCommerce will help you with this. It allows to set up many different types of discounts for each situations.

Especially for our readers, we have selected the most innovative pricing rules and provided instructions for them.

  1. For companies based on hyperbole — Auto add to cart

Let’s look at the next rule – buy 2 belts and get 3 with a 50% discount.

Create a rule (blank). Add Filter by products section. Select Products type and set the quantity to 2. Select the product – Belt. Add Auto add to cart section. Select the same product and set the discount for it.

  1. For companies based on litote — discount on attribute

Do you have defective products? For, example it has scratches, abrasions or damaged packagings.

Sell them at a discount via Advanced Dynamic Pricing for WooCommerce!

Create a rule (Product discount). Choose the Attributes type in the Filter by products. Select the attribute. In the Product discount section choose the discount.

  1. For companies based on comparison — sample as a gift

The “buy a partner’s product and we’ll give you our sample as a gift” rule perfectly illustrates the comparison. Obviously, after trying a sample of your brand, the buyer will be able to compare it with a competitive product and make a choice in your favor the next time he/she orders.

Create a rule (blank). Add Filter by products section. Select Products type and the product – Belt. Add Free products section. Select your product.

Note: if you want to give a sample only once, then set Can be applied — Once.

  1. For companies based on metonymy — discount on category

Do you want the client to think about your company first when he sees an object, emotion or animal? Link his purchases with associations. Give a discount for the category you belong to.

For example, your business calls “CapybArt”. You create custom T-shirts.

Create a rule (Product discount). Choose the Categories type in the Filter by products. Select the category. In the Product discount section choose the discount.

In conclusion, creativity is your way to present yourself as a brand. Don’t be afraid to stand out and make a statement. Experiment with different types of advertising and discounts. This is always possible with Advanced Dynamic Pricing for WooCommerce plugin.

1
Nov, 2023

Discount for the wholesalers with Advanced Dynamic Pricing for WooCommerce

Introduction

One of the most demanded type of the discount is a discount for the wholesalers. Most of the e-shops has a special wholesale price or discount for those who buy in large quantities. The shop owner can give a special price as a coupon or just when the purchase starts from the reasonable quantities.

By offering exclusive discounts to your wholesalers, you can incentivize them to make larger purchases and establish long-term partnerships. Advanced Dynamic Pricing for WooCommerce allows you to customize discounts based on factors such as order volume, product categories, or specific customers. This flexibility ensures that your wholesale pricing strategy is optimized for maximum profitability and customer satisfaction.

With the Role discount function you can set up wholesaler’s discounts. Read on to find out how to do this.

Role discount for a wholesaler

Role discount in Advanced Dynamic Pricing for WooCommerce is a powerful tool that can help retailers manage their pricing in a more efficient and effective way. It allows retailers to apply discounts to certain groups of customers as a guests, wholesalers or internal discount of the company for the staff.

To apply Role discount to a wholesaler, you must first create a rule.

We will set up 4 rules for different situations:

  • Discount for the entire store.

  • Discount for the required amount in the cart.

  • Discount for specific product.

  • Discount for bulk purchases.

Discount for the entire store

Click on the “Add rule” button and select “Role discount”.

Specify Wholesaler as the role.

Select the discount type and amount.

There is the discount for the entire store.

Discount for the required amount in the cart

Click on the “Add rule” button and select “Role discount”.

Specify Wholesaler as the role.

Select the discount type and amount.

Click on the “Cart Conditions” button.

Specify amount of cart.

The discount is applied once the cart total reaches $100.

Discount for specific product

Click on the “Add rule” button and select “Role discount”.

Specify Wholesaler as the role.

Select the discount type and amount.

Click on the “Product filters” button.

Choose an item.

Only hoodie with logo has the discount.

Discount for bulk purchases

Click on the “Add rule” button and select “Role bulk”.

Specify Wholesaler as the role.

Specify ranges and discounts.

Product quantities from 3 to 9 receive a 5% discount, and quantities from 10 receive a 10% discount.

Conclusion

Look how easy you can make a discount for the wholesalers with Advanced Dynamic Pricing for WooCommerce.

But you can make your shop more powerful for the wholesalers with the analytics: use Advanced Order Export for WooCommerce to export the report about the wholesalers purchases. How to do it – read in our next articles.

28
Jun, 2024

Getting ready for the 4th of July using Algol+ plugins

The 4th of July is a significant holiday that brings a surge of sales to retailers across the United States. As an online store owner, it’s crucial to prepare your WooCommerce store to handle the influx of customers looking for deals and to streamline your operations for the big day. Algol+ plugins offer a suite of tools that can help you optimize your store for this busy time. Let’s explore how plugins like Advanced Dynamic Pricing, Advanced Order Export, and Phone Orders can enhance your store’s performance and customer experience.

Advanced Dynamic Pricing for WooCommerce

The Advanced Dynamic Pricing plugin allows you to set up dynamic pricing rules that automatically apply discounts based on various conditions. For example, you can create a “Buy One, Get One Free” offer for American flags, or offer a 20% discount on all barbecue-related products when a customer’s cart total exceeds $50.

Example:

  • Rule: “4th of July BBQ Special”

  • Condition: Cart subtotal (exc. VAT) >= $50

  • Discount: 20% off on selected BBQ products This encourages customers to spend more to reach the threshold for the discount, increasing your average order value.

Phone Orders for WooCommerce

Not all customers are comfortable placing orders online, especially when it comes to last-minute purchases. The Phone Orders plugin enables you to take orders over the phone and manually enter them into your WooCommerce system. This is particularly useful for catering to less tech-savvy customers or handling complex orders that require customization.

Example:

  • Customer Call: “I need 20 sparklers delivered by July 3rd.”

  • Manual Entry: Create a new order in WooCommerce with 20 sparklers, set delivery date, and process payment over the phone. By offering a personal touch, you can capture sales that might otherwise be lost.

Advanced Order Export for WooCommerce

The Advanced Order Export plugin is not just a tool for simplifying your fulfillment process; it’s also a powerful instrument for statistical analysis. With its ability to export detailed order information, store owners can track and analyze sales data over time. This can be especially beneficial during the 4th of July sales when you want to understand consumer buying patterns.

For instance, you can export sales data for the week leading up to the 4th of July and use it to identify which products are the most popular, what times of day see the most orders, and which promotions are driving the most sales.

Example:

  • Export Data: “4th of July Week Sales”

  • Analyze: Identify peak ordering times, top-selling products, and most effective discounts.

  • Action: Adjust stock levels, staff scheduling, and marketing strategies accordingly.

Conclusion

Preparing your WooCommerce store for the 4th of July doesn’t have to be a daunting task. By utilizing the Algol+ plugins, you can offer enticing deals, streamline your order processing, and provide personalized customer service. These examples illustrate just a few ways you can use these powerful tools to make the most of the holiday rush and ensure your customers have a memorable shopping experience.

Remember, the key to a successful holiday sale is preparation. Start setting up these plugins well in advance to ensure a smooth operation when the 4th of July arrives. Happy selling!

24
Oct, 2023

Halloween Sales Analysis

Halloween is in less than a week! I hope you are well prepared for it. If not, then read all about how to properly organize a marketing strategy during this period and get the maximum effect from its analysis.

Most purchased products and popular coupons

It’s no secret that on the eve of the holiday, the following products will be relevant:

  • Costumes. Who doesn’t want to dress up as their favorite hero? Thanks to the Barbie movie, many people will want to become the main character or Ken. A lot of revenue will come from this position.

  • Candies. Giving out candy has become a tradition on Halloween. Almost 70% of people definitely do this. Give customers discounts on buying candy in bulk to attract them.

  • Decor. Home decorating competitions are still a thing. Your competitors have already lowered their prices on terrible things. Do this too.

Create your own themed coupon and see how it affects your shopping habits. With Advanced Dynamic Pricing for WooCommerce plugin, this can be done with the snap of your fingers.

Specify which products will come with a discount, set its amount and come up with a name for the coupon. Find out which coupon names are the most common:

  • SPOOKY15

  • TRICKORTREAT

  • PUMPKIN

  • HAPPYHALLOWEEN25

  • MYCANDY20

Activate the coupon, inform your customers about it and wait for the peak of sales!

Why should you choose Advanced Order Export For WooCommerce for export?

Halloween is one of the most popular times of the year for retail stores. With the influx of shoppers and the high demand for costumes and decorations, it is important for store owners to keep track of their sales and analyze the data. Fortunately, Advanced Order Export for WooCommerce makes it easy to track your Halloween sales.

The plugin allows users to export customer data such as order IDs, customer names, billing and shipping addresses, order totals, and more. Additionally, the plugin also exports product data such as product IDs, product names, SKUs, prices, quantities, and discounts. This data can be used to analyze the store’s sales performance and gain insights into the most popular products.

Advanced Order Export for WooCommerce also provides you with a range of features that make it easy to customize your reports. You can choose which fields to include in your reports and even add custom fields that can be used to track specific metrics.

Note: To set up a coupon report, you need to add the following fields – Coupon Code and Discount Amount.

Note: Read our article for a detailed guide on exporting.

Finally, Advanced Order Export for WooCommerce allows store owners to export their sales data to other applications. With this feature, store owners can connect their WooCommerce store to third-party applications such as Google Docs and Dropbox. This allows them to easily view and analyze their sales data in different formats.

By what parameters should you analyze the data?

Halloween is over and you’ve received your sales reports. What to do next? Check whether your marketing hypothesis is confirmed. There are different indicators for this:

  • CTR (Click-through Rate)

CTR shows how accurately an ad responds to a user’s query and how attractive it is to the user.

The higher the CTR, the higher the ad quality score. Increasing ad quality while maintaining the same maximum bid increases the chances of getting a higher position. In other words, ads with a high CTR save money.

CTR = Clicks 100% / Impressions*

  • CPL (Cost per Lead)

A lead is a user who has shown interest in a product or service and sent his contact information (ordered a quote, requested a price list, asked for detailed advice, etc.).

CPL = Contextual Advertising Costs / Leads

  • CPC (Cost per Click)

The cost that an advertiser pays for clicking on an advertisement and then going to the site. CPC helps us evaluate the effectiveness of an advertising campaign and adjust bids. The CPC indicator is influenced by several factors – the ad itself, its quality score (CTR), the region of display, time, competitors showing ads for the same key phrases.

CPC = Advertising Cost / Clicks

  • CPA (Cost per Action)

Cost Per Action is used as an indicator of the cost of attracting one client or performing a targeted action.

CPA includes payment models such as: CPL (Cost Per Lead), CPV (Cost Per Visitor), CPI (Cost Per Install), CPC (Cost Per Click), CPS (Cost Per Sale), CPO (Cost Per Order ) and CPM (Cost Per Mile). This is due to the fact that CPA involves attracting customers with the ability to pay for any user action.

CPA = Advertising Cost / Targeted actions

  • LTV (Lifetime Value)

LTV is an indicator of the profit that a business receives over the entire period of working with a client. Customer Lifetime Value is considered one of the key values in marketing and e-commerce in general. The metric shows how much is spent on attracting, retaining, engaging and how much income the company receives from all this.

LTV = Average bill × Average operating time

  • ROAS (Return on Ad Spend)

It shows how profitable an investment in advertising is and allows you to measure the effectiveness of both an entire campaign and individual ads or a group of them, as well as keywords. Using it, you can determine the degree of payback according to the following principle:

  1. ROAS is less than 100% – the campaign is at a loss;

  2. ROAS is equal to 100% – the advertising paid for itself, but did not bring any profit (it went to zero);

  3. ROAS is more than 100% – the campaign was successful and brought profit.

Employees typically compare these metrics across multiple campaigns to determine the most profitable source. And all this is not calculated for a specific period, but for the entire time that the advertising was active.

ROAS = Advertising Revenue / Advertising Cost × 100

  • ROMI (Return on Marketing Investment)

This metric shows the return on marketing costs: advertising, website, SEO promotion, email campaigns, blog, and so on. ROMI takes into account only marketing costs, and does not include the costs of producing goods, employee salaries, or renting premises.

ROMI = (Marketing Revenue – Marketing Cost) / Marketing Cost × 100

  • ROI (Return on Investment)

The indicator demonstrates how profitable or unprofitable a project or product is.

Investments are a contribution directly to the business, that is, expenses for employee salaries, rent of premises, marketing, purchase of raw materials and materials, purchase of software and services necessary for work.

ROI = (Revenue – Cost) / Cost × 100

It is impossible to determine which of these parameters is best. The choice depends on the level of competition in the niche and the positions you want to occupy. Some indicators are not indicative for analytics in isolation from the context, so they must be calculated together with other metrics.

Testing and analysis the marketing hypothesis

The theory is over. Let’s start practicing!

In the previous paragraphs, we created a coupon in Advanced Dynamic Pricing for WooCommerce and uploaded a sales report using export. What data do we have? From the report we know information about our customer, his/her purchases and coupons. Let’s say our marketing hypothesis was:

“If you give a coupon for subscribing to the newsletter, your income will increase by 20%.”

Let’s take a look at the data from the report:

Order Number … Order Total Amount … Coupon Name …
12345   1302   SPOOKY15  
12346   590   SPOOKY15  
12347   436      
12348   2098      
12349   377   SPOOKY15  
  Total amount: 4803      

Let’s imagine that last Halloween the income was 4000 dollars, then the percentage by which the income increased will be as follows:

(4803 – 4000) / 4000 × 100% = 20%

Our hypothesis is confirmed and income actually increased by 20% thanks to the coupon. But, as stated above, indicators do not work in isolation from each other, so let’s calculate other metrics to find out how effective our marketing hypothesis is.

How do users find out about the subscription coupon? Obviously, a simple ad on your site is not enough to achieve this. That’s why we launched contextual advertising in Google Ads. We also set up a goal in this application – a paid order.

The advertising cost was $200, there are 1000 impressions, there are 20 clicks, and there is 1 targeted visit. Based on this, we calculate CTR, CPC and CPA:

CTR = 20 / 1000 × 100% = 2%

CPC = 200 / 20 = 10

CPA = 200 / 1 = 200

There aren’t many impressions, but the CTR is excellent. 2% is an average value that shows that our advertising is relevant to users.

The CPC is $10, which is quite high for a cost per click. This means that advertising is carried out using popular keywords, where there is a lot of competition. But don’t panic. With the help of advertising, we attracted one client who carried out the targeted action – made an order. We don’t know who it was, but even so we can say with confidence that the advertising paid off and brought us at least $177 (we subtract the CPA value from the cheapest order with a coupon).

Let’s find out how profitable our hypothesis turned out to be.

ROI = (4803 – 200) / 200 × 100% = 2301.5%

Note: For simplicity, we do not include many types of expenses. In real life, you won’t get such a large percentage.

An ROI above zero indicates that the hypothesis is actually profitable. But is it more profitable than last year? In 2022, Halloween revenue was $4,000. Expenses included advertising our store – $50.

ROI = (4000 – 50) / 50× 100% = 7000%

Last year’s ROI is significantly higher than this year’s. However, this does not mean that the current marketing strategy is completely ineffective, since the net profit from it is:

4803 – 200 = 4600

and from the previous one:

4000 – 50 = 3 950

Thus, ROI should not be taken as an indicator of profitability. It only shows whether your investment is paying off. It is only important that its value is positive. As for the effectiveness of the marketing hypothesis, it turned out to be successful. Thanks to advertising, income increased by 20%, and 1000 users learned about our store! If we added other fields to the report, many more hypotheses could be analyzed. The possibilities for customizing reports in Advanced Order Export for WooCommerce are endless.

In this article, we examined in detail the process of analyzing Halloween sales using Advanced Dynamic Pricing for WooCommerce, Advanced Order Export For WooCommerce and various metrics. We wish you high results!

27
Nov, 2023

How to Become an Expert at dynamic pricing

Dynamic pricing is a pricing strategy that is quickly becoming the new normal for businesses. It involves adjusting prices based on market conditions and consumer demand. With dynamic pricing, businesses are able to better align their prices with customer demand and maximize their profits. But becoming an expert at dynamic pricing isn’t easy.

What do you need for this? Here are a few tips to help you get started.

Understand Economics

Before you dive into dynamic pricing, it’s important to understand the basics of pricing theory and economics. You’ll need a solid foundation of knowledge and understanding of how prices are determined and the forces that affect them. Take the time to research pricing theory and familiarize yourself with the different types of pricing strategies.

You can refer to YouTube tutorials or find theory in books. We have compiled a list of preferred literature for you to get started in understanding economics.

For those just starting out, we recommend Economics in One Lesson by Henry Hazlitt. This book provides an introduction to economic theory in a simple and concise way, making it a perfect starting point for those new to the subject. Another great introductory book is Economics: Principles and Practices by Glencoe. This book provides a comprehensive overview of the basic principles of economics, and is great for visual learners.

If you are looking for something more in-depth, The General Theory of Employment, Interest, and Money by John Maynard Keynes is an excellent resource. This book is considered the starting point of modern macroeconomics and provides a great overview of the key concepts in economics. For a more advanced look at economics, you can check out Foundations of Modern Macroeconomics by Ben K. L. S. S. Bernanke. This book is a comprehensive look at the theories of macroeconomics, and provides an excellent foundation for further study.

No matter what your level of economics knowledge, there is something out there for everyone.

Analyze the Market

To become an expert in dynamic pricing, you must be able to analyze competitive markets and identify market trends. This means being able to look at different market segments and identify how customers are responding to different pricing strategies. It also means being able to compare the prices of different competitors and identify pricing strategies that are most successful.

How to correctly identify target customers?

Often people are grouped into the target audience according to common criteria. For example, according to the following characteristics:

  • demographics (gender, age, marital status, education);

  • geography (place of residence, climate, characteristics of the region);

  • economy (income level, solvency);

  • psychography (character traits, lifestyle, core values).

However, it is wrong to select an audience solely based on the same characteristics. People of a similar age from the same city and with the same income may be interested in different goods and services.

How to evaluate competition?

Conducting a competitive analysis is an important step in developing a successful business strategy. It involves analyzing your competitors’ strategies, identifying their strengths and weaknesses, and understanding the opportunities and threats they present.

To begin your competitive analysis, you must first identify your competitors. This includes researching their products and services, as well as their pricing strategies, industry trends, and customer feedback. Once you have identified your competitors, you can then compare them to your own business. Look at their customer service, product offerings, marketing campaigns, and other activities that could give them an advantage. Analyze their strengths and weaknesses in order to understand how they are positioned in the market. Additionally, look at their pricing strategies and how their pricing affects their customers. This will help you gain insight into how you can improve your own pricing strategies.

Once you have identified and analyzed your competitors, you can then use the information to create a competitive advantage for your own business. This may include developing new products or services, implementing different marketing strategies, or changing customer service policies.

Monitor Demand

By taking into account customer demand, businesses can use dynamic pricing to adjust prices on the fly in order to increase their revenue. Knowing customer demand is an important factor in dynamic pricing for a variety of reasons.

First, it allows businesses to stay competitive, as they can adjust their prices to match their competitors. This can be done by monitoring competitor prices and adjusting their own accordingly. By doing this, businesses are able to compete for customers in a more efficient way.

Second, understanding customer demand helps businesses identify which products and services are in high demand and which are not. This can help them to focus their efforts on the products and services that are in higher demand and adjust their prices accordingly.

Third, knowing customer demand can help businesses to optimize their pricing strategies. By taking into account customer demand, businesses can adjust their prices to the right level in order to maximize profits. This can be done by increasing prices when demand is high, and decreasing prices when demand is low.

Finally, understanding customer demand can help businesses better target their customers. By taking into account customer demand, businesses can identify the different types of customers they have and tailor their pricing strategies to target those customers.

Use Technology

In the past, businesses had to manually adjust their prices based on market conditions, a process that was time-consuming and labor-intensive. However, technology has enabled businesses to automate the dynamic pricing process. With the help of sophisticated algorithms, businesses can accurately forecast market trends and adjust their prices accordingly. This allows them to stay ahead of the competition.

Have you ever heard of Advanced Dynamic Pricing for WooCommerce? No? Then you are behind other competitors who are already using it.

Advanced Dynamic Pricing for WooCommerce is a revolutionary tool that allows store owners to quickly and easily change prices on their products and services based on demand. This means store owners can increase prices during peak times, such as when supplies are low or when demand is high, and decrease prices during off-peak times, when supplies are plentiful and demand is low.

The plugin is incredibly easy to use and allows you to quickly set up and manage your pricing rules. It gives you to create complex pricing rules that can be based on product attributes, user roles, cart attributes, and more. In addition to the rules, this plugin includes the ability to display ads to customers. It can be placed, for example, on the product page or in the cart.

If you are looking for a way to optimize your store’s pricing, Advanced Dynamic Pricing for WooCommerce is an excellent choice.

Test and Adjust

Once you’ve identified the right pricing strategy, it’s important to test it and make adjustments as needed to maximize profitability and ensure customer satisfaction. Testing pricing strategies is an important part of the process of developing a successful pricing strategy.

Depending on the product or service being offered, the size of the company, and the competitive landscape, each business will have to determine the best approach for testing their pricing strategy. The following are some of the most common types of pricing strategy testing:

  1. A/B Testing: A/B Testing is a common type of pricing strategy testing and involves testing two different versions of a product or service at different prices. This allows businesses to compare the results of each version and determine which pricing strategy will be most effective for their business.

  2. Multivariate Testing: Multivariate testing is a more complex form of pricing strategy testing and involves testing multiple versions of a product or service at different prices. This allows businesses to determine which pricing model works best for their target customer base.

  3. Survey-Based Testing: Survey-based testing is a great way to get customer feedback on a pricing strategy. This involves asking customers about their current pricing preferences and how they feel about different pricing models. This feedback can then be used to inform the pricing strategy of the business.

  4. Price Optimization: Price optimization is a type of pricing strategy testing that involves analyzing data from past sales to determine the optimal price point for a product or service. This helps businesses better understand their customers and how they respond to different pricing models.

  5. Behavioral Testing: Behavioral testing is a type of pricing strategy testing that involves analyzing customer behavior when presented with different pricing models. This helps businesses understand how customers are likely to respond to different pricing strategies.

No matter which type of pricing strategy testing a business chooses, it is important to remember that testing should be a continuous process. As the market changes and customer preferences evolve, businesses should be sure to adjust their pricing strategies accordingly.

By understanding the fundamentals of dynamic pricing and developing a deep understanding of the data that drives it, you can become an expert at dynamic pricing. With a good pricing strategy, you can maximize your profits and stay competitive in the marketplace. Advanced Dynamic Pricing for WooCommerce will help you along the way.

3
Jun, 2024

How to set different price based on country

In the dynamic world of e-commerce, personalized pricing strategies have become a key driver of competitiveness and profitability. One particularly effective approach is using geographic data to tailor prices according to regional factors. This article explores the significance of using geographic data in dynamic pricing and provides insights into implementing this strategy on WooCommerce, one of the leading e-commerce platforms.

Understanding Geographic Data in Dynamic Pricing

Geographic data refers to information that identifies the location and characteristics of natural or constructed features on the Earth’s surface. In the context of dynamic pricing, it includes factors such as:

Market Demand: Demand for products or services can vary significantly across different regions due to factors like population density, income levels, cultural preferences, and local economic conditions.

Competitive Landscape: Local competitors, market saturation, and pricing strategies employed by competitors in specific regions influence the pricing decisions of e-commerce businesses.

Regulatory Environment: Legal and regulatory differences between regions, such as taxes, tariffs, and shipping regulations, impact pricing and profit margins.

Adapting Prices to Regional Features on WooCommerce

  1. Geolocation Tools Integration: Integrating geolocation tools into your WooCommerce store allows you to identify the location of website visitors accurately. By knowing the geographic location of users, you can customize the pricing displayed to them based on their region.

  2. Market Research and Analysis: Conduct thorough market research to understand the unique characteristics and demands of different regions. Analyze demographic data, consumer behavior patterns, and competitor pricing strategies to inform your pricing decisions.

  3. Dynamic Pricing Rules: Implement dynamic pricing rules that take geographic data into account. For example, you can set rules to adjust prices based on the cost of living index, local currency fluctuations, or demand-supply dynamics specific to each region.

  4. Targeted Promotions: Use geographic data to create targeted promotional campaigns tailored to specific regions. Offering discounts, promotions, or incentives that resonate with the preferences and needs of local customers can boost sales and customer loyalty.

How to do it in Advanced Dynamic Pricing?

Change the terms of the wholesale discount for each country. To do this:

  1. Find out the current exchange rate to adjust the required amount for the discount. For example, the buyer must have a purchase worth 50 US dollars. To convert this to Danish kroner, you need to do a mathematical calculation: 50 * 0.15 = 7.5, where 0.15 is the ratio of the krone to the US dollar.

  2. Specify the country in the Conditions section. In our example, we do not specify a filter for products so that the discount applies to the entire store.

  1. Monitoring and Optimization: Continuously monitor the performance of your dynamic pricing strategies across different regions. Analyze sales data, customer feedback, and market trends to identify opportunities for optimization and refinement.

Note: in this case, you can use Advanced Order Export for WooCommerce. Read more about setting up this plugin there.

Benefits of Geographic-Based Dynamic Pricing

Improved Competitiveness: Adjusting prices to reflect regional demand and competition, businesses can stay competitive and capture market share more effectively.

Enhanced Customer Experience: Personalized pricing based on regional preferences enhances the customer experience, leading to higher satisfaction and repeat purchases.

Maximized Profitability: Optimizing prices according to regional factors enables businesses to maximize profitability by capturing value where demand is highest and adjusting prices where necessary.

Conclusion

In the era of data-driven decision-making, geographic data in dynamic pricing has emerged as a powerful strategy for e-commerce businesses operating on platforms like WooCommerce. By understanding regional features, adapting pricing strategies accordingly, and harnessing the capabilities of modern technology, businesses can gain a competitive edge, enhance customer satisfaction, and drive sustainable growth in the global marketplace.

© Alexander Prokaev, sole trader — Russia, Astrakhan, Botvina street, 29,95 — VAT 301702039457