Boosting conversion rates and keeping even the most budget-conscious shoppers on board, US multi-brand watch e-tailer Savvy Watch has introduced PriceWaiter – an e-commerce price negotiation technology.
The plug-in tech delivers call-to-action prompts in two places: a pop-up window (‘Leaving already? Time to make an offer!’) that appears when a customer is on the cusp of leaving the site; and, as a gentler nudge, a ‘Make an Offer’ button below the ‘Buy Now’ tab.
Customers then haggle privately via the button, naming their price and submitting it. Required to provide an email address, the bidder is notified as soon as the offer is accepted, countered or rejected.
The technology uses both human and machine learning to drive negotiations. Retailers can opt in to handle each offer individually or use the tool’s applied algorithms, which are based on a pre-arranged set of retailer-established rules to stay within acceptable gross margin levels. By choosing the automated response option, shoppers get a real-time response and can checkout immediately with their personalised price.
Savvy Watch has confirmed that the tool has already led to a 9% increase in conversions since being implemented in 2015, with average customer savings of around 10%.
The tool trades heavily on a growing culture of consumer disloyalty and promiscuity, as detailed (alongside key opportunities) in Renegade Retail, part of our Macro Trend The Currency of Dissent.