What is a price group?
Price group is a term used in pricing strategies, which refers to a set of prices applied to a specific group of customers. Simply put, it is a way to offer special prices that are different from what has been listed on the site. In order to do so, businesses group a number of customers under one category and decide the price for that specific group.
How do businesses use price groups?
Businesses often use price groups when having different classes of customers. A price group is a way to offer discounts for each specific consumer group. Therefore, when users log in to their e-commerce account, they can see that particular discounts according to the type of customer they fall into.
On a broader level, businesses need to decide who can receive those discounts, and what are the levels of discounts they offer. For example, wholesalers may have lower prices than retailers, as they buy in larger quantities. Or the price for loyal customers should also be discounted more frequently than normal ones. Using price groups, businesses can easily change the pricing strategies based on membership in a group.
What are the benefits of a price group?
- Provide better customer service: Price groups allow businesses to treat customers nicely based on their loyalty and engagement with the shop. For example, first-time buyers are encouraged to make a purchase with a discount. Meanwhile, loyal customers are offered special offers for their supports. In the long run, this can improve the credibility and reputation of your business.
- Support monetary management: Having price groups clearly defined in the system can help businesses to manage the money flow and build financial plans. No manual tasks are needed, thus reducing the risk of human error.
- Build marketing plan: A price group also helps to build a marketing plan that targets a specific type of customer.
- Increase sales: Being tempted by the offers, customers are more likely to make a purchase with satisfaction, which can ultimately boost sales.