Dynamic Pricing from online to in-store

Are you paying more because of Artificial Intelligence?

The answer is probably yes you are and you don't even notice it.

For a while now consumers have been subject to dynamic pricing when purchasing online for items like airfares, hotel rooms and Uber based on the demand. The higher the demand the higher the price. While paying extra is annoying we also benefit when demand is low and often get bargains when demand is low like early-bird discounts. 

Well hold onto your wallets because brick and mortar retail is starting to implement dynamic pricing too.

Your behaviors give insight into how much you would pay.

They way in how you respond to special offers is giving away how much you are willing to pay for certain items and helps algorithms create pricing based on your behavior.

As these machine learning algorithms get smarter about your buying patterns they can also drive your behavior buy determining what price to offer you at what time to most likely result in you making a purchase either in-store or online.

What worries me is where this can lead. Gamification of pricing could actually drive behavior in the future and look at the damage such ideas have done to society in the gambling industry.
Could your grocery store become the equivalent of a video slot machine? Enticing you with rewards and discounts the more often you visit?

AI pricing bots can also work for you

Innovate products like the Amazon Echo and Google Home are already assisting consumers to find the best deals. I have recently noticed that Amazon Echo often gives the user a greater discount than you can get on the actual Amazon website for the same product from the same supplier. This is designed to encourage you to use the voice search service more often.
Retailers have already been using supply and demand to drive prices but as rewards programs become more personalized they also are starting to use your behavioral purchasing patterns to dynamically determine prices. Bonus reward points on your favorite regular purchases and discounts for using your loyalty cards at checkout are an example of algorithms starting to be introduced in-store.

Loyalty programs are really just a way for retailers to collect more data. Consumer unwittingly are giving up their buying behaviors to retailers so they can sell that data back to the brands you buy and other advertisers.

My hope is someone soon finds a way to trick the algorithms into giving bigger discounts more often. Now that would be a hack worthy of us constantly giving brands more and more data.

What is In-Market and why should you care?

The rise of People-based marketing

One of the biggest challenges for marketers when running an advertising campaign to acquire new customers, is that you never know where in the buying process a potential prospect is when they see your ad.
Even if you are doing search keyword advertising, each individual within your audience could be at different stages within the process of making a buying decision.

Although ad tech has progressed to be able to target those most likely to buy based on demographic information, it is only through a person's behaviour that we can determine if someone is actively pursuing a purchase or just researching.

People-based marketing represents an industry shift from targeting devices to connecting with the right people at the right time, with the right message.  Rather than targeting ads to devices based on cookies, which is fraught with inadequacies, marketers can now reach people across the many devices they use, thanks to persistent identity. By including behavioural and demographic data we can build this persistent identity and our targeting intelligence becomes more contextual and predictive. We can apply that insight to bring highly personalised experiences to our audience, and we can help marketers do the same.  Marketers will be able to reliably reach their relevant customer in a meaningful moment, and measure the reach and ROI of their message. That connection to their audience will become increasingly seamless and intuitive across devices.

So how can you use this in your business to grow your profits?

Let's look at the audience your current advertising is reaching at a deeper level. If we analyse where in the buying process they could possibly be, we see that the majority are not yet ready to buy.

The shocking part is that only 3% of your audience are in the ready to buy stage. The other 97% are going to require far more education based marketing to get them into that ready to purchase stage. That means the cost to get them to make a buying decision is going to be a lot higher than those ready to purchase. All you need to do with the top 3% is educate them as to why buying from you is the best buying decision. That is a much easier and cheaper task.
Those potential customers in the ready to buy stage are what we call In-Market.

If you could spend the majority of your advertising budget focusing on those already In-Market what result would that have on your profits?

Want to Learn More?

 

Google's Latest Algorithm Change Favours Mobile-Friendly Sites

Starting on April 21st 2015 Google is making a massive change to how it ranks websites and this is going to effect everyone with a website.
The change to the ranking algorithm will be based on one critical factor: whether your website and landing pages are optimised for mobile devices.

So you can no longer sit on the fence about ensuring your business website is mobile-friendly. If you do nothing you will see a dramatic decline in the amount of organic search traffic your site gets as Google with rank mobile-friendly websites higher than yours.

Test your website today

The very first thing you need to do is test your website using the Google provided tool which you can access here:

When you run your site on the tool, you'll get a quick assessment of whether your mobile rank will suffer as a result of the April 21st change.

If your website is fully optimized for mobile, you'll get a success message:

If your website, landing pages or blog are not ready for the mobile update, you'll get a message that looks like this:

So if your site fails this test you have the following three options:

  1. Update your site to use a Responsive Design
  2. Update your web platform for Dynamic Serving
  3. Create a Separate Mobile Website

The best option by far is also Google's number 1 recommendation and that is to update your site to use a Responsive Design

Why a Responsive Design is the best option

A responsive design uses the same web address and the same content on each page but the layout adjusts and resizes to match the screen size of the device viewing the webpage. This is by far the most effective method and is much easier to maintain and update. Our own Profit Cloud website uses a responsive design.
NOTE: If your site or landing page was created by our team at Profit Cloud, your website is already using a mobile responsive design.

So talk to you web developer and find out how to get your site upgraded to a mobile responsive design.

If you would like our team at Profit Cloud to help just click on the offer below:


Where to Start when moving to the Cloud

If your business has not yet started using cloud services, finding the right place to start can be very daunting. With so many providers of cloud services out there it can be quite confusing.

For Profit Cloud the move to cloud based computing has been easy because I am a certified as both a Cloud Technical and Cloud Business Professional, but I too had to start small in the beginning.

No matter what size or type of business you have, I believe that the easiest areas of the business to  look at moving to the cloud are the areas that almost all staff use and rely on heavily. 

Email and File Sharing

If you just start with a few users you can easily compare using cloud based email and file sharing services against the traditional in-house or server based methods.

This is also the cheapest place to start as these services have a very low cost.

My recommendation is to start by trying Google Apps for Work

We use Google Apps in our company for all our staff and the performance has been outstanding.

Click on  the link below to find out more and get a free trial on us!

 

Funnels, not Webpages

Pretty-much EVERY business now has a website...

But websites are usually a bit flat - a bit "2 Dimensional"...

99% of webpages do NOTHING for businesses. So why not focus on the few money-making pages instead? And better yet - why not join them together into a single customer journey - a sales funnel..? 

The key advantage of a funnel is it enables you to take control of the customer experience, and guide your customer through the optimum purchase journey.

A Sales Funnel enables you to control the customer's thought sequence and educate them to the value you bring to the marketplace.

For example, you can begin by presenting your prospects with a lower value (lower risk) product to gain their trust, before pitching the higher value upsells.

The result: each visitor is more likely to purchase multiple products in a single visit - i.e., each visitor is more valuable to you, has a higher lifetime value.

This is your chance to get ahead of the game - because most businesses still only have standard "2D" websites, leaving a ton of money on the table. 

And, there's one new metric that every digital marketer needs to track in light of this switch to 3D funnels...

Average Cart Value.

This is a measure of how strong your funnel is.

=> Check Out This $500k Case Study to See How This Metric Can TRANSFORM Your Business

Inside, you'll see how, with this simple change of focus...(from individual page Conversion Rates to the Average Cart Value)...

...this funnel goes from LOSING $0.6 per $1 invested...to MAKING $2 per $1 invested!

So this is definitely worth a look
 

2015 Profit Kick-Start Sessions

Happy 2015!

The team here at Profit Cloud are already back from holidays and hard at work helping our customers increase profits.

To celebrate the new year we are offering a special no obligation Retail Profits Kickstart Session for all new customers. In this free training our technology specialist will demo some of the newest marketing tech for retail like the iBeacon Proximity Marketing and Programmatic Buying.

So if you own a retail store and would like to learn how to increase profits in your store, then book a session today!

We also have some huge surprises for all our existing customers so stay tuned......

What Do Australian Businesses Think about Programmatic, RTB and Retargeting?

Since launching Profit Cloud we have had discussions with over 1000 businesses over a wide range of industries and sizes about this cutting edge marketing technology called Programmatic Buying.
We have spoken to the CEO's of huge brands, huge marketing agencies and even the small restaurant owners, start-ups and solo business owners.
Not surprisingly, the majority when asked if they had heard about any of this new way of marketing, responded with a "no".
So as you can imagine it has been a challenge having to educate businesses about this new technology. Here at Profit Cloud we are up for any challenge and we strongly believe:

The Obstacle is the Way
— the name of a fantastic book by Ryan Holiday

As part of one of our own sales funnels we ran a survey to find out just how much Australian businesses had heard about Real-Time Bidding and Re-targeting. We also asked what type of on-line marketing they are currently doing.

Some of the answers are actually very surprising: (over 1000 took this survey and not everyone answered all 3 questions)

Many use Pay Per Click advertising and a huge amount none at all........shocking it is the small businesses!

Many use Pay Per Click advertising and a huge amount none at all........shocking it is the small businesses!

Some of the big agencies are starting to use re-targeting for brand re-enforcement.......

Some of the big agencies are starting to use re-targeting for brand re-enforcement.......

Only a small number understand it and are using it....

Only a small number understand it and are using it....

Although only just over 1000 responses is not a huge sample size, those responses match very closely the discussions we have had on the phones and in meetings with another 1000 businesses. 

For me that spells: Opportunity!

Not just for us in terms of a marketplace to sell to. It is a huge opportunity for businesses who are first to use and master programmatic advertising. By being an early adopter a business can get a head start while the costs are low.
Remember when PPC keywords were less than a dollar? I do and it was back when it was new. Now with Real-Time Bidding the bidding prices on audience data is low because there is low demand. This makes it an ideal time to start exploring this new technology as the low costs give a huge advantage over rivals who are spending big bucks just using pay per click.
 

One of the best ways to increase your profits is to lower your CPA or cost to acquire new customers. This is an excellent way to do that.

for those interested in the book I mentioned....