Price comparators And the lowest price auction that destroys margins

Shall we now talk about comparators? They are another wonderful tool, obviously on the consumer side, that allows you to buy a product from those chains/shops that are part of those sites - portals that are in their monitoring, at the lowest price in the market, at least compared to all the players put under monitoring and comparison.

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So they are able to get all those players in that product or that type of product to compete by having the consumer find the lowest price and then be able to go to the distributor that is selling it at that time at the lowest price.

We have examples of comparators such as:

idealoetrovaprezzi

We must say, however, that in order to appear on these comparators, it is necessary for those who have an ecommerce site to have an agreement that leads them to be able to continuously send their data by updating them and putting the comparator precisely in a position to work at its best.

Of course on the consumer side this is definitely cool but then of all the promotional mechanisms, flyers and, most importantly, our good loyalty cards (which are supposed to accompany us on a path precisely of loyalty to a particular establishment or chain of stores) what do we do with them?

So what good are the old fidelity cards today when on now in several industries the work of comparators puts the user in a position to find the best price for that product?

Neglecting and not understanding that at the difference in selling price there could easily be a difference in purchase as well, perhaps because of the different weight of the product in the market of this chain compared to the other…but nothing!!!…the consumer sees a lower price and is won over…and has reason to buy according to convenience.

In our opinion, the traditional fidelity card or loyalty card is outdated, but not because we say so but because the facts bear it out.

Surely, if we looked in my wallet (as well as if we looked in yours), we would find the largest number of loyalty cards of the many, many commercial establishments, practically all the commercial establishments we are used to visiting. … a veritable collection of fidelity cards.

By now everywhere we go shopping they ask us if we have a fidelity card to participate in their loyalty programs, and if we don’t, they immediately ask us to participate in the loyalty program.

Our answer is generally yes, and thus about 50-80 % of the customers/consumers of this or that retail chain/shop are registered to a phantom loyalty program that is supposed to enable the merchant to get their customer to return to that store or sign …. actually we know that it happens quite the opposite, that is, we have the fidelity card of each business within which we buy, we generally have a panel of stores that we visit and within which we make our purchases, whether of food products, detergents, sporting goods, products for our animal friends and within the store that we go to visit, when we get to the cash register, we show our beautiful fidelity card and, in the rare case in which we do not have it, we immediately proceed to apply for one… so much for free!!!

stocard

Then today there are wonderful applications such as Stocard that allow you, instead of having to carry a wallet with you that maybe over time is not even enough anymore to be able to hold all the loyalty cards that we have, today instead we have them registered inside our good Smartphone and therefore we no longer need to carry tons of documents with us but just go to the store where we want to buy and show our good loyalty card at the cashier.

So by now, this money invested, all the resources that are devoted to loyalty mechanisms and programs that are basically dead or at most inefficient and outdated, is money that is disbursed in a haphazard manner that allows no return on investment because it is considered absolutely “trivial but due” and included in the price.

There are clearly commercial chains that have over time been able to retain their customers better than others but, we all know, that true loyalty can be there when you are able to be a truly active part with your customer: making them unique in their value!

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All chapters of: Loyalty 2.0

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