In April 2022, I had the opportunity to present at our online networking event for a select group of pricing experts. dynamic pricing community. Every month we bring together a group of experts from leading pricing practitioners with market leaders like Zalando, Phillipsand sixth to network and discuss best practices in pricing.
I talked about the missing link between pricing and marketing. Retailers often address the two separately. However, marketing activities and pricing strategies are driving consumer demand. It is better to consider them as complementary strategies rather than as closed silos. This close connection is often overlooked, creating a lost opportunity to take a more holistic approach that connects one to the other, optimizing both.
It was a missed opportunity so far. By working with our 7Learnings customers, leading retailers, we now have a way to bridge these two areas. We’ve created an innovative cross-marketing optimization feature that, for the first time, connects the two, leading to better results across the board.
Retailers can leverage many forms of marketing optimization to elevate their marketing activities and improve their business results. Here are some examples :
- Retargeting: Retargeting is about getting your audience familiar with your brand and offerings by promoting your business on the various channels they visit. A pixel tool tracks user activity and displays retargeting ads for high-value customers on other sites and platforms.
- Search Marketing Optimization: Search marketing optimization involves the development of search engine optimized (SEO) content, helping to promote traffic to a company’s site and products in Google search results.
- Email Marketing Optimization: email marketing is 40 times more efficient to generate new customers on social networks than on Facebook and Twitter. Optimizing email content and developing a compelling email, CRM or newsletter strategy can be a very impactful marketing tool for retailers.
- Advertising on search engines: Related to search marketing optimization, search engine advertising (SEA) is also a vital tool that retailers can use to optimize their marketing. This method allows retailers to appear at the top of search results, improving the likelihood of a customer visiting their page and converting it into a potential sale.
- Discount and Coupon Strategies: discounts and coupons are common strategies used by retailers to help encourage customers to spend. We can use them differently by applying a discount on an entire assortment of products or by offering a coupon to targeted customers. Thanks to advanced tools and artificial intelligence technology, retailers now have exciting new ways to optimize their discount and coupon business.
Executing discounts is a core marketing function for most retailers today. Discounts are essential for capturing customer interest and converting it into sales, as many customers are price-sensitive and appreciate discounted rates. We may apply discounts at the product, category or assortment level, for specific durations or different values depending on the audience segment.
In our experience, it is always wiser to define differentiated discounts at the product level. Flat discounts at the category or even the assortment level do not use variable price sensitivities by product. To do this, you need the technology to measure price elasticities at the product level. With our Discount Optimization feature, we can do that.
Our discount optimization function allows retailers to determine optimal prices based on their business objectives. The software informs the retailer that pricing leverage can help achieve desired revenue and profit. It is up to the retailer to choose from these options the goals that are closest to their financial plan. The software then determines the optimal prices for the given strategy. Retailers can set different strategies for different categories or products. For example, a retailer may develop a more ambitious revenue goal for a specific product type or line (eg, products from the previous season). Instead of using a flat discount on this product range, the software calculates differentiated values by product.
“Now, with just one click, you can implement a price change of 2 million euros to increase your profits. Pricing has never been easier and hassle-free. »
“The graph illustrates how cross-marketing optimization can increase your profits by 7.4% while requiring almost no effort on your part to implement.”
Coupon Rate Optimization
Coupons or vouchers allow retailers to offer a discount to a specific group of customers or on targeted products. A coupon-based marketing strategy can be very effective in capturing customer interest and engagement.
7Learnings’ coupon rate optimization feature allows retailers to determine the optimal coupon rate by predicting the impact of different coupon rates on profit and revenue. This tool allows retailers to strike the right balance between customers’ willingness to spend, coupon rate, and product prices to maximize profits.
SEA spend optimization
SEA spend directly correlates to business results, driving valuable traffic from customers willing to spend. However, knowing the right amount to spend on SEA and the correct prices to match SEA spend values can be tricky. Our SEA expense function allows you to predict the impact of SEA spend strategies and the impact of different budget values on business results.
Optimization of marketing spend
Paid ads, aka SEA (search engine ads), spend correlates with business results, driving valuable traffic from customers willing to spend. Any marketer knows how vital performance marketing is and how directly it can impact your overall results, from reach to profit. The earlier a business appears on a search result (e.g., page one versus page two or three), the greater its reach and ultimately the more conversions it can achieve, with conversions being the holy grail for marketers everywhere. With paid ads, competition is fierce these days, and knowing the right amount to spend on ads and the correct prices to match SEA spend values can be a challenge. Our marketing spend function allows you to predict the impact of SEA spend strategies and different budget values on business results.
How does it work, exactly? Let’s see it step by step:
- First, we collect the necessary data, looking at individual products, traffic data, marketing cost per transaction, and different marketing options.
- We can learn how different changes will impact your business from this data. We can predict traffic, conversion rates and cost per click (CPC)thus determining the most effective decisions regarding your marketing spend.
- Finally, we take all this information and optimize and deliver the optimal marketing management option (on the CPC for example) and the optimal price per product.
We give you the best possible option for your SEA marketing options and product pricing, ensuring that both deliver the best results.
7Learnings software can capture the latest marketing budget changes, using this data to adapt and recommend the optimal price values based on changes in SEA spend.