How to convert customers to when you are the most expensive
Convincing consumers to part with their hard earned cash can be a challenge at the best of times but what about if your offering is among the most expensive out there?
Well it’s difficult, and no more is this difficult than within the leisure, hospitality and events industry. Consider a hotel room. There are thousands of hotels and rooms out there, so what is going to convince a consumer to opt for not only your hotel but also most expensive room?
Here we will explore some potential ways to increase online conversions in this sector.
Offering an exclusive deal increases a consumer’s perception of value, if you pair this with an expensive product or service consumers can be willing to spend more. Exclusivity creates a sense of rarity and importance which in turn helps conversions as it creates the perception that this offer should be taken advantage of. Website features such as a members club can help reinforce this perception.
Furthermore, offering exclusive deals which are only accessible via your brand website can also aide conversions. Forcing users to navigate users to your website mean you can frame your offering correctly e.g. to convey luxury through a well-designed website. It also takes users away from your competitors, price comparison sites can be great for extending your reach but it can be hard to stand out from the crowd and covert if you’re at the pricier end of options.
You always want what you can’t have. Scarcity is another useful method to help boost conversions in the leisure, hospitality and events industry. It has a number of benefits for conversion; firstly, scarcity implies your offering is a highly desired Item. This acts as a trust signal due to the implied social approval, or in other words, it must be the good because lots of people want it.
Secondly highlighting the scarcity of an item also creates a sense of urgency which is another beneficial conversion tools as according to study by ConversionXL has been show to increase conversions by 332%. Take the example from Booking.com below:
Not only does Booking.com highlight the limited availability but it also cleverly lets you know what you have missed, this creates a real sense of urgency. So if you’re looking to push your more expensive offerings consider website features such as limited availability/ stock trackers to help create the feeling of scarcity.
Be Even More Expensive…
It may sound counter-intuitive but experimenting with more expensive pricing can actually increase conversions. There are two ways you could try and implement this. The first is through price anchoring, this is the method of adding an even more expensive offering to your site and placing this near the product or service you actually want to sell. By doing this is make the product you want to sell look like value by comparison and studies have shown it can increase sales by double.
Secondly if something is expensive it creates the perception of quality. Take a look at your competition and price an item way beyond the most expensive in the marketplace then track the results. It could set you apart from the competition, increase conversions and also test what your upper limits of your pricing strategy could be.
Key takeaways, when looking to sell more expensive products or services perception is everything. Whether it’s creating a sense of value for money or quality, experiment and test methods which work for you as there is no catch-all technique.
This is just a snapshot of some methods that can be used, over the coming months we will explore other ways to help increase conversion rate in the leisure, hospitality and events industry so stay tuned!
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