In the last few decades, global selling has really become the norm. Customers will come to you from all over the world, and they’ll want to be able to buy your product and have it shipped to their location. If you want to start marketing your products to overseas customers, price localization will help in this regard. Here’s what you need to know.
What Is Price Localization?
To use price localization, you’ll need to know exactly what it is. In short, it’s the practice of changing the currency on a product page, depending on the area that a customer is accessing it from. For example, if your business is located in the US, but a customer is viewing your product in the UK, they’ll see the price in GBP rather than USD.
“There are two different ways that you can use price localization” says Annette Browning, a writer at Boom Essays and UK Top Writers. “You can either change the display currency on your site, or you can change the unit cost of a product.”
- Changing display currency: This is often considered to be just a cosmetic change, but it’s amazing what a difference this makes. When customers see that you have products listed in their local currency, they’re much more likely to buy from you. That’s because they can see exactly what they’ll be paying, and they’re more likely to trust you.
- Changing the unit cost: This is a more complex change, but it’s one that can pay off very well. When you use this policy, you won’t change the price just based on local currency, but according to the competition in that customer’s local area too. In basic terms, the more competition there is in that area, the lower you’ll set your prices.
Why Price Localization Is Important
So why make that extra effort to use price localization on your site? You’ll already have seen some of the advantages above. If a customer sees the price in their local currency, then they’ll be much more likely to buy. They’ll see right away that you do ship to their country, and they can see the price right away without having to convert it themselves.
Changing the unit cost is especially helpful if you’re looking to break into a crowded marketplace. While you may not have as much competition at home, there may be more overseas. If you know there’s a lot of competing businesses in the area you’re targeting, you can reduce the price so you can get the edge.
Either way, using price localization is a tactic that will help you bring in more new customers and get them on board, so it’s well worth exploring.
How To Implement Price Localization
1: Start With Local Currency
If you just want to get started, then you can offer prices in local currency first, depending on where the customer is located. You can automatically have your website display the appropriate currency, or you can give them the option to switch it themselves. It’s especially helpful for customers if they’re also international businesses that operate in several different currencies.
2: Research Before Using Price Changes By Area
Before you start looking into using changing unit prices, you will need to do your research. There are several things that you need to know. “For example, you should research sales data by location, to see which areas are experiencing poor sales numbers” says Gary Powell, a localization blogger at Research Paper and Personal Statement Help. “You can also reference what your competitors are doing, from their blogs and publications.” This info will show you where changing that unit price can be helpful.
3: Tailor Your Product To Customer Needs
As well as using price localization, you can create packages that are designed to work with customers’ needs, based on location. For example, if you’re selling customer communication systems, you can create startup packages that offer the ability to cope with heavy demand in urban areas, or one that can work with spotty internet access in rural ones.