This infographic from WisePricer, who offer a full-featured pricing and merchandising engine that monitors, analyzes and re-prices retail products in real-time, helps software companies improve their ecommerce by understanding the factors that influence price strategy decisions, and what changes have the most impact on their bottom line.
Cart abandonment is a major concern for software merchants. Generally speaking, more people than not abandon their online shopping cart after choosing a product and putting it into the cart. In fact, according to the Baymard Institute, an independent web usability research institute, the average documented online shopping cart abandonment rate is 67.91 percent – that’s more than two-thirds of visitors!
Conversion Rate Optimization
There are a number of ways to combat cart abandonment, also known as shopping cart and conversion rate optimization. Changing the parts of your shopping cart and seeing which configurations perform best through split tests can have an enormous impact on how much revenue your ecommerce generates.
Pricing Strategies and Profit Margins
One very important element in your shopping cart is the product price. The display of your price is very influential. Now, of course, you don’t want to drive down your cart abandonment rate by sacrificing your profit. That’s just foolish. But sometimes, lowering your prices for a limited time helps convert new customers, who eventually become long-term loyal customers. And sometimes, raising your prices makes your product more valuable in the eyes of some shoppers.
Check out this infographic which explains that improving profit margins is top of mind for pricing strategists and identifies the major challenges of pricing strategies. It concludes with five suggestions that businesses can use to increase their margins, including a dynamic pricing strategy.
Ever experienced pricing strategy challenges and worked to overcome them? Tell us about it in the comment section below.