The following is a guest post by Madeline Miller.
The great thing about the internet is that you can find an audience all over the globe. You have access to a wider audience, and so you can be more successful than ever before. If you really want to find success though, you'll want to ensure you're using price localization. What is it, and why is it so important?
What Is Price Localization?
Before you can start using price localization, you need to understand just what it is. On a basic level, price localization is the act of changing the price on a product or service, depending on the customer's location. This can be done by either changing the display currency or changing the unit cost of a product.
“When you use price localization, you may assume it's just a cosmetic change depending on location,” says tech writer Anna McCall, from Boom Essays and UKTopWriters. “You should know it actually has a real effect on customers and whether they decide to buy from you.”
That makes sense, as customers who see prices in their local currency will know exactly what they have to pay, rather than having to make their own currency conversions before making their purchases. You'll also see that they tend to trust companies more if they are offering prices in local currency first.
That's the benefit of changing the displayed currency. When it comes to changing unit price, things get a little more complicated. When considering the price you'll charge in a certain area, you'll have to take lots of different things into account. This includes things like the amount of competition in the area, the cost of living, and so on.
If the competition is high for example, then you'll need to price your goods lower in order to gain the market in that area. If there's less competition, on the other hand, you'll be able to price higher.
Price localization, as you can see, is part of a personalization strategy that you can use to encourage customers to buy from you. It's something that you'll want to keep in mind as you develop that strategy.
The Benefits of Price Localization
As mentioned above, if you're looking to make a mark for your business in areas where there's a lot of competition, then you'll want to look into price localization. This gives you the ability to get customers to notice you even when competition is dense.
It also helps you with analytics if you're looking to use data to help drive sales. When you have data on your customer base in any given area, you'll see that you can find the best price for that area to drive sales and get the success you're looking for.
Creating Your Price Localization Strategy
Now you know just how a price localization strategy can boost your business, you'll need to consider how you'll put yours in place. Here are some tips that you can use.
Start by switching currencies: If you want to get started with price localization, then this is the best way to do so. “Give your customers the option to switch to their local currency when they view products on your site,” says Linda Groves, a marketing blogger from Ox Essays and Paper Fellows. “That helps customers feel valued and makes it more likely that they'll buy from you.”
Start researching your markets: When it comes to pricing by unit, you'll need to do your research in order to get the best results. For example, you need to consider what your customers in that area actually need. What are they looking for, and how could their needs be better met? Secondly, you'll also need to consider the cost of living in this area, too. When you have a good idea of what the market standard is across the area, you can start pricing according to that.
Consider creating bundle packages: This is something that will also affect the pricing of your products. Depending on the customer's location, they will need different things from you. You can put bundles of what they need together, and that will make it more attractive to buy.
For example, if you're selling communications systems, the needs of your customers will be different depending on location. In rural areas, they'll need something that can work on less reliable internet and offers options for virtual meetings. In urban areas, that same setup will need features that work well even on strained VoIP infrastructure. You can set these bundles up, and price them according to region.
This has been a quick guide to how price localization works, and how you can use it in your business. With these tips, you can use them as part of your localization strategy and get in on any market around the globe.