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How to use Price Localization for Increasing Global Sales?

Category: Enterprise

How to use Price Localization for Increasing Global Sales?

How to use Price Localization for Increasing Global Sales?

The price of a product or service is the most influencing factor for a buyer. Of course, there are other factors affecting online sales, such as geographic location, currency, user experience, and so on. When we talk about price localization, we incorporate all these factors to render a customized shopping experience. According to a study, a group of SAAS companies confirmed that sales performance increased by 30% when price localization was implemented.

You can simply make changes in a payment gateway process by accepting local currencies and adjust pricing according to the market demand to successfully implement price localization. In addition to these, there are other ways as well. Here, we highlight the importance of price localization, and how it will affect your international business.

Cosmetic Localization versus True Localization

Price localization happens at various levels, depending on your goals. For example, if you have a product that sells really well, you can apply basic changes to boost global sales. But if you are entering a new market, you have to consider multiple aspects. Based on these two situations, there are two localization types – Cosmetic localization and true localization.

  1. Cosmetic Localization

Currency Exchange – Under this strategy, you can provide competitive exchange rates when converting the price of the product in local currency. Further, ensure minimum payment gateway charges to reduce additional costs, besides the product price.

Local Currency – You can also simply eliminate the need to provide an exchange facility by showing prices in local currency. This will improve the user experience, resulting in higher chances of customer acquisition.

Local Language – Translating website content into the local language is another way of tapping local customers. According to a study by KPMG and Google in India, 68% internet users prefer content in local language rather than in English.

  1. True Localization

Market Demand – You just cannot change the price and currency, and expect a rise in sales. When cosmetic localization doesn’t work, true localization comes in. The foremost influencing factor is market demand, and whether the market is saturated or not. For example, if the product demand is high in Europe but the competition is low, you can sell the product at a higher price.

Buyer Personas – The price is influenced by buyer personas as well. This involves customer’s demographics, buying behavior, and other factors. You have to customize a package, design, or features according to the customer’s preference. For example, some products may work well in the USA but they won’t sell in India unless you customize it according to buyer persona.

Purchasing Power Parity (PPP)

The price localization depends on the purchasing power of the currency. The purchasing power is determined by considering factors like income levels, cost of living, and so on. The purchasing power parity (PPP) aims at striking the balance between two currencies. In other words, as per PPP, the cost of a product should be the same in both currencies. For example, if a pair of shoes cost $50 in the USA, it should cost Rs 2500 in India, if the conversion rate is 50.

But the currencies, in comparison to US dollar, are either undervalued or overvalued. Now if you keep the prices same for the global market according to the PPP, the sales may get hampered. So on the basis of the conversion rate, exchange rate, and customer’s willingness to pay a particular price; you should adjust the selling price so that customers don’t hesitate to pay the price.

Customer’s Sensitivity

A customer is sensitive to various factors, not just the price and benefits. While pricing the product for a targeted audience, analyze factors like customer’s income, lifestyle, spending pattern, preferences, market demand & supply, the local language, and so on. Conduct surveys or deploy big data analytics to accrue information. The price localization works effectively when you create value according to customer’s sensitiveness and set a suitable price tag.

The Final Words

Price localization is an effective strategy of catering to the targeted audience, thereby, boosting local sales. It’s not just an option but a dire need if you want to tap the global market. Understand the market demand, and step into the market with the right product and price tag before you lose the ground to your competitors.

5 Emerging Trends that will Influence E-Commerce Businesses in 2018

5 Emerging Trends that will Influence E-Commerce Businesses in 2018

Setting up an e-commerce store is not just about creating a website, uploading images and descriptions, integrating a payment gateway, and waiting for the customers to come and buy from the store. The times are changing, and you should too. As per Statista, the global retail sales via e-commerce platform will be worth $653 billion by the end of 2018.

E-commerce business is constantly undergoing evolution, just like other industries. One who adapts according to the emerging trends will reap the benefits. Have a look at the latest trends to strategize your e-commerce business strategy.

Shop on Social Media

According to a report on social media, a person had spent 135 minutes daily, on an average, on social media in 2017. This depicts the influence of social media on our lives. The e-commerce businesses can exploit the potential of social media for driving sales via their online stores. The social media platforms like Facebook, Instagram, Pinterest, and others offer a shopping option.

The users can inspect products from their social media accounts, click on desired products, and check out on the e-commerce website. Facebook Shop and Pinterest’s Shop For Look are examples of social media shopping. Whether you opt for paid marketing or showcase products to your followers; social media can be used for boosting e-commerce sales.

Chat Bots

People prefer one-on-one interaction that can impart a personal touch, a customized experience. The probability of sales increases when you personally cater to your audience. You can enable chatbots on your e-commerce store so that anyone can initiate a conversation with the representatives. There are various live chat tools that offer feature-packed services to engage your customers. You can also use Facebook Messenger for conversations. As most of the users are on Facebook, this seems a viable option.

Mobile Shopping

According to eMarketer, mobile e-commerce accounted for 58.9% of sales in 2017. Undoubtedly, this number is expected to grow across all continents. You should strategize your e-commerce business around mobile, be it developing a mobile app, investing in mobile advertising, or installing secure online payment systems.

We have one-click payment systems that simplify payment processing, thereby, rendering a seamless user experience. The ease of payments via mobile is a major driving factor for the increase in mobile shopping trend. Further, as users tend to spend more time on their smartphones and tablets, it becomes obligatory to target mobile audience.

Voice Assistants

Do you that know that 40% millennial rely on voice search when making online purchases on mobile?  As voice search is convenient and more accurate than text-based search, users are opting for voice search. Moreover, mobile users are increasing at an exponential rate and voice search is perfectly aligned with respect to linguistic search. These all factors compel e-commerce business owners to integrate voice search in their online stores.

Google Assistant, Amazon Alexa, Apple Siri, and Microsoft Cortana have made it clear that voice search is the future. Further, voice-based devices like Amazon Echo and Google Home rely on voice search mechanism for solving user’s queries. Optimize your e-commerce business around voice search to harness maximum benefits.

Artificial Intelligence & Machine Learning

Once a buyer visits your store and buys a product or service, you can showcase similar recommendations at the same time or send automated emails regarding same or similar recommendations. Other than this, you can deploy artificial intelligence for showcasing retargeted advertisements on social media and search engines. The voice search and live chatbots work on the same principles of artificial intelligence and machine learning, and there are endless possibilities for engaging with the visitors and increasing your sales if you lay emphasis on these two parameters.

 

With increased digital exposure, e-commerce has tremendous potential. If you can utilize the right tactics at the right time, you can take your online business to the next level. Optimizing according to the latest trends will assist you in preparing for the future. Therefore, you will always be one step ahead and will be able to maximize online sales via your e-commerce store.

5 Reasons to Accept Multiple Types of Payments

5 Reasons to Accept Multiple Types of Payments

It is impossible to miss how all kinds of businesses are going online these days, all over the world. This is primarily because an online store guarantees to connect you with countless customers from your own country as well others, making your business a more successful venture than ever before. While you are excited about offering your products and services to worldwide shoppers, you should not overlook the fact that providing these shoppers multiple payment options is mandatory these days. And consequently, you need a payment gateway like PayTabs that offers alternative payment options and accepts almost all currencies. Why you say? Read on to know the reasons!

  1. To boost your revenue

Offering multiple payment methods to your customers means they will have a better time shopping from your ecommerce store. This is because they will be able to pay whichever way they want, without having to face issues like “Only credit card accepted” and so on. And the more they buy, the more your revenue will shoot up! For instance, PayTabs is a global payment gateway that accepts 168 currencies and offers a wide array of payment options like American Express, Visa, MasterCard, Sadad, Mada, Union Pay, WeChat Pay, Alipay, and K-net.

  1. To keep old customers hooked

Just because your existing customers use a debit or credit card to make purchases from your online store right now doesn’t mean that they won’t look for a card-less payment option in the future! And this is where using a payment gateway that offers quick and safe transactions without any card can be beneficial.

  1. To secure new and repeat customers

By offering multiple payment methods, you will also be able to attract new customers who prefer digital payments using e-wallets. And because gateways like PayTabs also accepts a huge number of currencies, your business will appeal to both domestic and international customers. The number of repeat customers will also go up because once a shopper experiences payment convenience at your store, he will keep coming back for more. For example, if a customer finds that he can easily buy a burger from you through mobile payment wouldn’t he want to do that again? Of course he will!

  1. To promote convenience and sell more

A friction-less shopping experience is all that a shopper wants. And as a merchant, you can offer multiple payment options to make this happen. In other words, if a customer wants to pay through debit card, he should be able to pay through a debit card. Offering this convenience will encourage shoppers to buy more and buy more frequently. If you couple this with discounts and coupons, your sale figure will go through the roof!

  1. To diminish overhead costs

Instead of putting in a lot of money for one expensive payment method, you can go for different payment methods which include low-cost options as well. Especially, if you are the owner of a small business in a risky industry and face a low volume of transaction, you should go for a wide array of payment options to bring in more customers and keep your overhead costs low.

Last but not the least; using a payment gateway that offers many different payment methods will mean increased cash flow. And you surely know that any business can benefit from a healthy cash flow and tide over emergencies easily. So, consider PayTabs as your gateway, offer more “payment choices” to your customers and gain a definite edge over your competition.

Changes in the E-Commerce Landscape That Could Affect Your Business

Changes in the E-Commerce Landscape That Could Affect Your Business

It is no news that merchants have been making the most of the e-commerce boom for quite some time now. Most businesses these days sell products as well as services online, to customers sitting in far-flung parts of the world.  While the internet has opened up a whole new world of opportunities to merchants, there are certain things you should focus on if you wish to thrive as a virtual business. As the e-commerce landscape is constantly changing, if you want to stay ahead of competition, here are the things you should keep in mind:

Offering multiple payment options

If a shopper visits your website, likes a product, clicks to buy, but sees that you only accept credit cards, he or she might abandon the cart. This is because they were probably looking to use their e-wallet. Naturally, you will lose valuable customers this way. Luckily, these days, there are payment gateways like PayTabs that allow merchants to accept many different currencies and multiple payment options like Visa, MasterCard, Union Pay, WeChat Pay, American Express, Sadad and more. Hence, as a business, you have a better chance to convert potential shoppers into actual ones if you offer more payment choices by adopting these gateways.

Make social media work for you

Social media platforms like Facebook and Twitter have become smart ways to advertise products online as well. Hence, businesses of all sizes have the scope to compete and connect with customers and turn them into loyalists. So, you should focus on social media marketing, create engaging posts, and interact with potential shoppers to build trust and confidence. Remember to accept both positive and negative reviews to get better.

Go mobile or get wiped out!

More and more online shoppers are using their mobile devices or smartphones to make purchases these days, be it a pizza or a gold ring! It is expected that by 2019, sales through tablets and smartphones can be as much as $150 billion. So you see how important it is to make your e-store mobile friendly. Or, you will lose out on sales. Adopting a payment gateway like PayTabs is also essential to make the payment process seamless and easy on mobiles.

Don’t ignore Omni-channel marketing

There was a time when people could make purchases only through a merchant’s website. But those days are long gone. You can now use social media, mobile apps, emails and even SMS to connect with your audience, inform them of sales and such, and make it easier for them to shop from you. This way, you will open up multiple channels to them for convenient shopping. Are you worried that managing the revenues from these different channels will be tough? Don’t worry as thanks to gateways like PayTabs, payment integration irrespective of the transaction channel is a reality.

Focus on customer service

The world of online shopping has become intensely competitive over the years. Customers today have more options than ever before, whether it comes to brands, type of products or benefits. So, in this scenario, great customer service can take you a really long way! But it is often expensive to set up and manage a call centre, especially if you are a new business. Though automated chatbots are popular and widely used by many e-stores, they are not always personal and don’t provide the support needed. Hence, a better idea is to use IVR or Interactive Voice Response which will work round the clock to cater to customer needs.

Payment security is very crucial

Online shoppers will only trust you when you use a secure payment gateway like PayTabs. This is because online frauds, identity thefts and phishing are on the rise. Hence, using a gateway that is PCI compliant makes total sense. Such a gateway will protect customer details, transaction data and prevent fraudulent attacks.

Finally, you see how surviving and succeeding in the e-commerce landscape is a tricky business! But with a little foresight and discretion, you can make technology work wonders for you. Just keep the above tips in mind and stay abreast with changes.

The importance of knowing your customer

The importance of knowing your customer

Whenever we are given a chance to describe our customer, the first thing we think of is demographic traits. 22 – 55, single, female living in a particular location. But is a statistical summation good enough to make business decisions? While this was true for the early days of eCommerce, things are different today.

Thanks to social networking sites, we are also privy to behavioral trails like their interests, hobbies and shopping patterns. That’s as far as the data available goes. But what about interpreting that data? How can we understand what is driving this person behind the computer to buy or not buy our products?

Several companies create an inside-out customer-first culture for their business. It’s a difficult trait but here are some points to help you get started:

  1. Map your customer’s journey

Your customer may visit your store and buy the product online or shop from your app. To do this, they may have either watched your TV commercial, heard about you on the radio, read about you in the papers or seen a social recommendation from a friend. In the era of omni-channel marketing, you’ll have to cross align channels with the phase your customer is in to see if each channel is working optimally.

The steps in the sales funnel for eCommerce include Discover, Explore, Gain Interest, Purchase intent, actual purchase and after sales support. When a customer reads about you on social media, they could be any one of the above phases. You’ll have to step back to see if your social messages are catering to customers in each segment equally.

  1. Listen to uncover insights

Survey tools have evolved over the years to go beyond the simple Google form. Instead, they now pop up at the right stage in a customer’s journey to gather valuable feedback. The only caveat is that you need to be able to ask the right questions.

If you ask your customer what they think of a new product line you’ve launched, you’ll probably get many answers that you want to hear depending on how you’ve framed the question. Instead, if you actually look for purchase patterns and interpret analytical data, you’ll get to know what your customers are actually doing. Listening to these patterns will allow you to tweak your product offering.

  1. Leave assumptions in the hallway

Even if your eCommerce business is successful, there is always room for improvement. There is always the issue of cart abandonment. You’ll still have to figure why only a fraction of your traffic goes on to become your customer and what happens to the rest.

The only real way to get your answers is to speak to the customer. You’ll have to zero in on a group, go in without fixed questions and let them do the talking while you walk away with insights that can be converted into action points.

  1. Go beyond heat maps

The analytics heat maps from your eCommerce website tends to show you a rough picture of where your customers are looking. But what does it tell you about their real time navigational choices? How are they examining products and charting their decision making journey. Which part of the cart is throwing people off? Are the taxes or shipping charges coming as a surprise? Are people unable to use their coupon code? Is your payment gateway (link) working as it promised?

To know answers to such questions observe how customers work in a focus group rather than just historic data.

Conclusion: After connecting data points with individual behaviour, the ongoing thing that you need to do is keep talking to your customers and check for feedback. The proactive approach to understanding your customer will be the difference between you and your nearest competitor.