Revenue growth is critical for any business looking to grow. The problem is that it is difficult
to figure out what tactics can increase ROI. Here are a few strategies related to price changes that businesses have used for revenue growth that can be put into practice immediately.
The first thing to try is an immediate price increase of the product. According to the social scientist Robert Cialdini “markets in which people are not completely sure of how to assess quality, they use price as a stand-in for quality.”. For example: Would the tech press have looked at the new Google Pixel phone as a premium smartphone if it was not the same price as an iPhone?
This strategy involves reducing shopping cart abandonment by dropping the price for the product in the cart and notifying the user with an email. Place a product in a shopping cart is a definite sign of intent to purchase. Not doing so could be due to price or lack of funds. A one-time price drop can lead to a sale.
Used to good effect by online deal sites, the anchoring price shows a suggest retail price along with discounted “current” price. This strategy will often lead to sales because customers think the item is going for a price lower than the usual.
Lastly, a limited time flash sale for a discount or promotion can create sales with a sense of urgency. It can also build loyalty from existing customers.