Channel Friendly Commerce:
How to Price & Promote Your
Products in a Multi-Channel World
Allied to Win Tour 2014
Introduction
Greg Squires
VP, Client Success
Shopatron, 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 Bo...
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 ...
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...
Promotions: Test Discount Offers
➤ Attract new customers. Develop loyalty.
➤ Case Study: Testing 3 Unique % Off Promotions...
Promotions: Flexible Fulfillment
When an order has a promotion applied,
brands have options:
1. Brand ships direct
➤ Auto-...
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 ti...
Easily Extend Your eCommerce Into New Channels
Consumer places
an order on eBay.
The order is sent to the
Shopatron order ...
Make eBay Your Own Channel
Shopatron merchant: Consumer electronics
1. “We cleaned up our distribution channels”
2. Stoppe...
Case Study
➤ 2 Powersports brands selling apparel & accessories on eBay
eBay Customers are a Unique Bunch
* Study based on...
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
➤ Op...
➤ A payment method in checkout (Not a promo code)
➤ Shoppers perceive these as discounts
➤ Brands don’t reduce price below...
Send special offers to:
➤ Under-engaged customers
➤ Prospective customers to
grow your following.
➤ Loyal customers to enc...
➤ Perfect for new product launches
➤ Special “pro” and “insider” deals
➤ Use at tradeshows or industry events
➤ Supports $...
➤ Appease customers with promotional value codes.
Turn customer appeasement into customer-retention
Dear Shopper,
We since...
Independent Studies Show:
➤ 72% of card recipients will come back to shop again.
➤ Shoppers spend an average of 40% more t...
Promotional Cards
Promotional Cards are different from gift cards and promo codes:
Promotional Cards Gift Cards Promotion ...
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
Gre...
When Marketing & eCommerce Teams Work
in Silos, Online Sales Suffer
MeasurabilityLow High
Drive Brand
➤ Brand Image
➤ Spon...
Collaboration Drives Brand & Sales
Drive Brand
➤ Brand Image
➤ Sponsorships
➤ Engagement
Drive Sales
➤ Search Engine Marke...
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 s...
Recipe for Success
Assessment Under-performers Top performers
Top Priority Dealers Consumers
Online Sales Goal None Define...
Thank You.
Greg Squires
VP, Client Success
Email: gsquires@shoptaron.com
Phone: 805-269-5147
Pricing and Channel Management 2
of 37

Pricing and Channel Management 2

Published on: Mar 4, 2016
Published in: Business      Technology      
Source: www.slideshare.net


Transcripts - Pricing and Channel Management 2

  • 1. Channel Friendly Commerce: How to Price & Promote Your Products in a Multi-Channel World Allied to Win Tour 2014
  • 2. Introduction Greg Squires VP, Client Success Shopatron, Inc.
  • 3. Channel Conflict
  • 4. Agenda Drive sales through: ➤ Price parity ➤ Promotions ➤ Marketplaces ➤ Promotional value cards ➤ Powerful brand marketing
  • 5. Brands’ Approaches to Pricing
  • 6. Brands’ Approaches to Pricing
  • 7. Brands’ Approaches to Pricing
  • 8. 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
  • 9. Product price varies during its life cycle A product’s position in its lifecycle will influence pricing strategy
  • 10. Agenda Drive sales through: ➤ Price parity ➤ Promotions ➤ Marketplaces ➤ Promotional value cards ➤ Powerful brand marketing
  • 11. 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
  • 12. Promotions: Get creative ➤ Gift with purchase ➤ Add value to the sale ➤ Product bundles
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Agenda Drive sales through: ➤ Price parity ➤ Promotions ➤ Marketplaces ➤ Promotional value cards ➤ Powerful brand marketing
  • 17. 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
  • 18. 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
  • 19. 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 Sales Website Sales
  • 20. 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.
  • 21. Agenda Drive sales through: ➤ Price parity ➤ Promotions ➤ Marketplaces ➤ Promotional value cards ➤ Powerful brand marketing
  • 22. Game Changer: Promotional Cards Powerful tool for online sales ➤ Offer attractive pricing without discounting product ➤ Opens a new ecommerce revenue stream
  • 23. ➤ A payment method in checkout (Not a promo code) ➤ Shoppers perceive these as discounts ➤ Brands don’t reduce price below MAP Effective Online Pricing
  • 24. 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: 1234567891234567 Pin: 1234 Valid through May 1st, 2014
  • 25. ➤ 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
  • 26. ➤ 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: 1234567891234567 Pin: 1234
  • 27. 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
  • 28. 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
  • 29. Agenda Drive sales through: ➤ Price parity ➤ Promotions ➤ Marketplaces ➤ Promotional value cards ➤ Powerful brand marketing
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. Brands Who Win Understand Customer Acquisition High Low Brand Exposure Low High Purchase Intent
  • 34. 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
  • 35. Recipe for Success Assessment 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%+
  • 36. Thank You. Greg Squires VP, Client Success Email: gsquires@shoptaron.com Phone: 805-269-5147

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