Hunting for perfect conversion rates? Product pricing can be a tricky affair. You don’t want them too high; you don’t want them too low! It’s the Goldilocks’ dilemma.
If you go for one or the other though, err on the cheaper side.
The best product conversion rates happen when you price your products at (or up to) 20 percent less than the market average.
Because Google’s algorithms reflect human tendencies, they tend to surface the cheapest products first (even if they don’t have the highest bid). Imagine a situation in which you and a contemporary sell the same brands and products. How you price your respective items will heavily determine both traffic and conversion volumes.
The Price Is Right
Besides the bid itself, competitive pricing represents the most important factor in snagging more shoppers.
Raising your prices too high means you lose margins and profitability. At the same time, you don’t want to drop your prices too low. After all, you run the risk of losing both margins and profitability.
Is there a solution to the pricing dilemma? Actually, yes.
It transpires that products shoppers click on in Google Shopping aren’t always what they go on to buy. In fact, two-thirds of shoppers end up buying something different. They may buy from the same brand, the same category…or a different brand and category altogether.
As a result, we realized that Google Shopping’s most important role is to get shoppers to your site when they express relevant search-intent. You can attract more shoppers to your site by discounting a few selected high-impact products with a lot of search volume. Once they’re there, up-sell or cross-sell to them (and thereby preserve your margins).
It’s not just about identifying high-demand products, though. You also need to regularly keep an eye on the competitive landscape.
To solve both issues, we developed Crealytics Price Advisor. This identifies a handful of “hard-hitting” products…and offers price recommendations based on the competitive landscape and search data.
Tired of DIY PPC? From handy tools to sage advice, we can help you with your campaigns. Say firstname.lastname@example.org today.
- View day 10’s blog here.