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Channel Friendly Commerce: How to Price & Promote Your Products in a Multi-Channel World
Allied to Win Tour 2014
Introduction
Greg SquiresVP, Client SuccessShopatron, Inc.
Channel Conflict
Agenda
Drive sales through:➤ Price parity➤ Promotions➤ Marketplaces➤ Promotional value cards➤ Powerful brand marketing
Brands’ Approaches to Pricing
Brands’ Approaches to Pricing
Brands’ Approaches to Pricing
Online Price Parity Is Paramount
Channel Disparity Parity
Brand’s Website $219 $199
Amazon $179 $199
eBay $169 $199
Big Box $189 $199
Specialty Retailer $199 $199
Product price varies during its life cycle
A product’s position in its lifecycle will influence pricing strategy
Agenda
Drive sales through:➤ Price parity➤ Promotions➤ Marketplaces➤ Promotional value cards➤ Powerful brand marketing
Promotions: Offer Free Shipping
➤ Persistently offer free shipping➤ Shoppers expect it. ➤ The 2nd most common reason
for leaving a site, behind price.➤ Offer at a threshold near
average order value
Promotions: Get creative
➤ Gift with purchase➤ Add value to the sale➤ Product bundles
Promotions: Test Discount Offers➤ Attract new customers. Develop loyalty.➤ Case Study: Testing 3 Unique % Off Promotions➤ Which one performed the best?
10% OFF
15% OFF
20% OFF
Promotions: Test Discount Offers➤ Attract new customers. Develop loyalty.➤ Case Study: Testing 3 Unique % Off Promotions➤ Which one performed the best?
10% OFF
15% OFF
20% OFF
50% More Revenue than the 10% Off Promotion
28% More Revenue than the 20% Off promotion
Promotions: Flexible Fulfillment
When an order has a promotion applied,
brands have options:
1. Brand ships direct➤ Auto-assign to manufacturer
2. Dealers ship ➤ Stores have choice to request order
3. Dealers ship and are reimbursed ➤ Brand subsidizes promotion
Agenda
Drive sales through:➤ Price parity➤ Promotions➤ Marketplaces➤ Promotional value cards➤ Powerful brand marketing
Marketplace strategy affects a brand’s online sales
How Brands Manage Amazon:
1. Limit Amazon’s product mix
2. Maintain tight pricing control
3. Manage 3P (Third Party) Sellers
* VERO: eBay’s Verified Rights Ownership program
How Brands Manage eBay
1. Limit # of dealers selling
2. Use VERO* to manage pricing
3. Take full control of eBay sales
Easily Extend Your eCommerce Into New Channels
Consumer places an order on eBay.
The order is sent to the Shopatron order exchange.
The closest participating retailer is assigned the order or it is fulfilled by the manufacturer.
Consumer receives the order via shipment or in-store pickup
Make eBay Your Own Channel
Shopatron merchant: Consumer electronics
1. “We cleaned up our distribution channels”
2. Stopped unauthorized eBay activity
3. Launched branded eBay store
4. Increased dealer-fulfilled revenue by 85%
Prior year Current year
eBay SalesWebsite Sales
Case Study➤ 2 Powersports brands selling apparel & accessories on eBay
eBay Customers are a Unique Bunch
* Study based on July-December 2013 eBay sales for powersports brands selling through Shopatron. Customer email addresses were compared to assess new or returning customers.
90% Over 90% of eBay buyers had not
purchased from the brand’s website.
Agenda
Drive sales through:➤ Price parity➤ Promotions➤ Marketplaces➤ Promotional value cards➤ Powerful brand marketing
Game Changer: Promotional Cards
Powerful tool for online sales➤ Offer attractive pricing without discounting product➤ Opens a new ecommerce revenue stream
➤ A payment method in checkout (Not a promo code)➤ Shoppers perceive these as discounts➤ Brands don’t reduce price below MAP
Effective Online Pricing
Send special offers to:➤ Under-engaged customers
➤ Prospective customers to grow your following.
➤ Loyal customers to encourage repeat purchase
Re-engage and grow your customer base
Dear Shopper,
We want to thank you for being a loyal shopper on our website.
Below is a $100 voucher for your next online purchase.
Code: 1234567891234567Pin: 1234Valid through May 1st, 2014
➤ Perfect for new product launches
➤ Special “pro” and “insider” deals
➤ Use at tradeshows or industry events
➤ Supports $0 order (Customer pays nothing)
Give products to customers through rebates or giveaways
➤ Appease customers with promotional value codes.
Turn customer appeasement into customer-retention
Dear Shopper, We sincerely apologize for your lost shipment. Below is a $20 voucher for your next purchase at our website. Thanks for your understanding.
Code: 1234567891234567Pin: 1234
Independent Studies Show:➤ 72% of card recipients will come back to shop again.➤ Shoppers spend an average of 40% more than card value
Shopatron 2014 Case Study: ➤ $15 codes distributed➤ Average customer spent $27➤ Shoppers spent 80% more than card value.
Gain Incremental Sales
Promotional Cards
Promotional Cards are different from gift cards and promo codes:
Promotional Cards Gift Cards Promotion Codes
Payment Method Payment Method Discount Code
Can Expire Never Expires (Escheatment Liability)
Can Expire
No Stored Value Stored Value No Stored Value
Agenda
Drive sales through:➤ Price parity➤ Promotions➤ Marketplaces➤ Promotional value cards➤ Powerful brand marketing
Powerful Brand Marketing
Brand marketing aims to:➤ Define brand identity➤ Develop brand equity➤ Drive brand loyalty
Great brands do this through:➤ Content➤ Engagement➤ Growing brand following
When Marketing & eCommerce Teams Work in Silos, Online Sales Suffer
MeasurabilityLow High
Drive Brand➤ Brand Image➤ Sponsorships➤ Engagement➤ Social Media
Drive Sales➤ Search Engine Marketing➤ Traffic Generation➤ Conversion Lift➤ Promotions
Brand Marketing eCommerce
Collaboration Drives Brand & Sales
Drive Brand➤ Brand Image➤ Sponsorships➤ Engagement
Drive Sales➤ Search Engine Marketing➤ Traffic Generation➤ Conversion Lift
Brand Marketing eCommerce
Drive Both ➤ Content marketing➤ Email marketing➤ Social Media➤ Promotions
MeasurabilityLow High
Brands Who Win Understand Customer Acquisition
High
Low
Brand Exposure
Low
High
Purchase Intent
Conversion Funnel
• Peavey amplifiers• Peavey guitar amps• Peavey electronics
• Peavey revalver mk iii• Peavey online store• Peavey.com
• Amplifiers• Guitars• Microphones
• Professional bass amp• Parlor acoustic guitar• Tom microphones
Recipe for SuccessAssessment Under-performers Top performers
Top Priority Dealers Consumers
Online Sales Goal None Defined & Measured
Website Purpose Show Product Sell Product
Website Pricing MSRP MAP
Channel Control Weak Strong
Run Promotions Rarely Periodically
Ecommerce as % of Company Sales
< 1% 5%+
