Every single year business owners spend billions of dollars trying to entice people to visit their website and make a purchase.
For some website owners, any traffic is good traffic, however, for those running online stores the end goal is to get consumers to make a purchase—or even better, multiple purchases!
As such, cart abandonment is one of the biggest problems facing online sellers. Being able to get consumers to cross the line on finalizing a purchase has become both easier and harder over time!
It’s easier from the perspective that there is greater exposure to impulse buyers who make quick purchases, so long as the inbound funnel is strong.
But because of this it is harder to stand out from the competition, with vendors from all of the world competing against each other on search engine results.
What this means for your business…is it is essential that every visitor to your website is encouraged to make a purchase.
Despite this, a study from Episerver found that most transactions don’t happen during an initial visit to a website.
According to their report, 92% of consumers visit a brand’s website for the first time to do something other than make a purchase.
This could include putting items in their cart but then moving on to other websites and never finishing the purchase.
Why does cart abandonment occur?
In the world of online shopping, we know that potential customers will abandon their shopping carts for a wide variety of reasons.
We have all been there and there are numerous reasons why we don’t finish a purchase, with some common reasons including:
- Our online shopping journey is side-tracked by something or someone;
- We could prefer to window shop and only finalise a purchase that is extremely attractive;
- We could be put-off by the price of delivery, which is regularly the case for international delivery.
These scenarios of cart abandonment, and many like them are heavily influenced by price sensitivity and potential concerns about a product’s price.
With it being possible for online visitors to move from different ecommerce platforms in under a minute if the price they see doesn’t match what they envisage, most electronic marketplaces have become extremely competitive.
From the buyer’s perspective, one of the worst things about online shopping is that you can never be sure that you got the best deal.
It happens all too often that you will find a better deal on an item after you have already purchased it, creating a sense of buyer’s remorse.
A common method used by websites is to offer coupon codes, reducing the displayed price, to encourage that final conversion.
However, these aren’t always sufficient!
Small incentives are useful for giving buyers on the fence an extra push, but bargain hunters frequently wait for a bigger incentive to buy.
This is where price drop alerts enter the scene!
What are price drop alerts?
Price drop alerts are quite simply a notification for potential purchasers to highlight relevant discounts made on specific items of interest.
For shoppers who are interested in a product but are hoping for a price reduction before finalizing a purchase, price drop alerts help the visitor to subscribe to alerts about the price drop of a product.
This tool is increasingly useful when products are subject to dynamic pricing. Facing ever fluctuating prices as a reflection of changing market conditions.
If prices vary weekly, or even daily, price drop alerts can help you perfectly time when to buy a product you had your eye on.
You can do this with the peace of mind that you won’t see it at a lower price the next time you visit.
Why use price drop alerts?
On top the reasons above, there a number of tangible benefits provided by price drop alerts which any online store owner should be aware of!
Online Web Visitor Re-engagement
Customers are more likely to re-engage when they receive a notification advising them of a price drop. This alert will lead them back to your website, allowing you to increase user engagement and collect more data for your own analytics.
Customer re-engagement helps you to bring back potential leads and convert them to customers. It is possible to customize your message to their interests because you already know what it is they are interested in.
Customer re-engagement and an increase of 5% in customer retention has been found to produce profit gains between 25% to 95%.
A study conducted by BlueCore found that abandonment emails have the highest average conversion rate (2.63%) and click-to-conversion rate (21.78%) of any triggered message type.
Conversions mean money and customers are more likely to make a purchase if they are fascinated enough by your offer to visit your website. This guides visitors through the sales funnel, increasing revenue for your company.
Increase website visitors
Visitors who receive a price reduction alert from your store have been waiting for it. As a result, when they do receive a message, they’ll be eager to visit your online store.
This boosts the number of visitors to your site as well as the number of conversions.
For impulsive web browsers, price drop alerts are the ideal reminder!
If you have ever spent a significant period of time online shopping it is highly likely that you will have put items into a basket, not made the purchase, and then proceeded to forget about it the next day.
By giving notifications when the price of a basketed item is discounted it will motivate these buyers to return and finalise the transaction at a reduced cost. Leaving both vendor and purchaser happy.
Expand your Email Marketing List
A price drop email program provides the potential to help you grow your email marketing list and allowing you to grow brand recognition and develop a loyal customer base.
To get the most out of this data capture technique you should use dynamic pop-ups, or targeted banners, as an additional incentive to encourage shoppers to sign up for your emails. With email marketing having
How do Price Drop Alerts work?
Price drop emails will be sent when the price of the product goes down, being more active when dynamic pricing occurs.
The price drop alerts advise customers of coupons and special offers for their favourite products that are not part of a formal sale.
They are a kind of triggered notification that is used to let every online visitor who has showed interest in a product know that the price has just gone down.
The way in which these price drop alerts work is identical to other triggered notification.
If you have opted into email marketing, the browsers in your consumers’ computers record and keep their browsing data. The price reduction alert is set to be automatically sent to customers when you activate it in your ecommerce system.
Details of the item browsed (including photographs) are included in the email in order to increase the urgency of the promotion (this is accomplished by using a template once you set up the programme).
To reduce your risk, you do not need to manually configure anything, and the emails are delivered using your organization’s own ESP, allowing you complete control of the creative component of the message.
The browser can be notified of a price change in one of two ways: either by creating an alert to let them know about it every day or on a weekly schedule as a standalone email or incorporate it in bulk emails such as newsletters and cart abandonment emails.
Prisync works to take advantage of this program by analyzing competitor prices and stock availability, helping you to trigger price drop alerts on products which are high in demand.
Instead of using an email message to talk about a larger discount in many categories, you may focus on bettering your profit margins by utilizing limited-time price cuts for individual products or inside niche areas, such as clearing out your warehouse of excess inventory.
Price Drop Alerts: The Future
Price drop alerts are undoubtedly a brilliant tool for any online platform vendor to take advantage of.
98% of customers on most e-commerce websites simply come, explore, and leave the site without buying items, and there is no method to let you know whether or not they might return to purchase in the future.
Adding product price alerting to your site now enables you to collect all of your visitors’ future purchase intent, which helps you go backward in time and bring past visitors to the present when a product’s price changes.
Taking this one step further, by running effective Competitor Price Tracking and intuitively changing your prices based on the information gathered you can develop a strategy and customize your sales funnel process to kickstart that revenue growth you have been search for!