There are millions of registered businesses worldwide, each competing with one another in terms of product, pricing, and customer care.
As a result, these businesses need to have competitive pricing to succeed in the global market since price determines to a large extent the goods and services consumers buy.
Fortunately, companies, especially ones operating in multiple countries and regions, can use a number of tactics, including price localization, to try to give customers the best possible price for their products and bring in more customers while you optimize profit.
Price localization is the process of determining the location of your customers to help you understand the best price point and model for selling to them in a given market and display pricing in the right currency and format for them.
Price localization is all about understanding the language, culture, and look and feel of your customers and adapting your product to meet their particular needs.
Although the United States dollar is a universally accepted currency, pricing your products in the greenback alone can turn off some customers and make you lose sales.
While currency conversion can do little to boost sales, price localization is the game changer if you’re expanding into new markets and territories.
There are two types of localization: cosmetic localization and market-based localization.
Cosmetic localization is the act of making sure that the currency symbol of your product’s price is the same as the currency of your customers within their location. For example, cosmetic localization ensures that a potential customer in France is able to see euros when trying to buy your products in the area. Potential customers in the U.S. should also be able to see dollars displayed to them when making purchases within the country.
Market-based localization involves measuring customers’ willingness to pay in a particular area and charging them accordingly. For example, you can charge your buyers in France more than your U.S. customers for the same product.
Price localization matters because of the following reasons:
Localizing your prices shows that you care for the needs of your customers. This will in turn foster customer trust in your business and enhance your key performance indicators, which measure business performance, activities, processes, and the progress of projects. Increased trust can also boost sales and lead to higher customer satisfaction.
Localizing your pricing ensures that you put the demographics of your potential customers into consideration whether you’re developing just pricing, product pages, cart contents, or payment options.
Price localization leads to an improved customer experience since customers are better served. This goes a long way to show your customers that you have their interests at heart and will always try to protect them in your dealings with them.
Localized pricing makes the checkout process easy and seamless for your global market. This increases the checkout experience for your customers, translates to less abandonment of carts, and increases sales.
You’ve already done the heavy lifting for your customers if you localize your prices. With an integrated exchange rate management system, your customers can easily buy in their local currencies without worrying about forex rates and conversions.
Use the right currency prefix or suffix when localizing. Using the right currency prefix or suffix will improve conversion. It’ll easily turn your website visitors into buyers or make them take any other desired action.
As a business operating in a highly competitive global market, you need to localize your prices to be on top of your game and stay afloat. Otherwise, you risk closing shop sooner rather than later.
Localizing prices are key when it comes to increasing your profits and breaking through in a new market. The issue many companies faces is how do you gain this crucial insight?
Priceagent is cutting-edge pricing optimization software that helps you identify your product features and market segments with a higher willingness to pay and then optimizes your prices for each segment based on those features.
The software ensures high-quality, unique, and accurate research with a quick turnaround time of just 24 hours, as opposed to a more extended period of time, say, six months or more, wasted by large consultancies that conduct similar research for large companies even at exorbitant prices. What makes the software stand out is its fast and vast reach, accuracy, and unique graphs. Try it today.
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