Pricing Page: Simple Tricks We Can Learn From Major Tech Businesses
Pricing page: simple tricks we can learn from major tech businesses
At Taylor Wells we speak to companies across all industries and at different stages in their pricing evolution.
The interesting thing is that established companies often do not have a better or more clear pricing proposition and strategy than newer entrants.
We are big believers in learning from best practise being implemented by leading and progressive companies as well as highlighting interesting developments in academic work into psychological pricing and influence.
Pricing page techniques on leading websites – what can we learn?
You can notice a number of common and academically justified approaches being used on this pricing page. Firstly, the tiered and differentiated three pricing options where different functionality is given to different user groups.
This ensure prices controls and that all customers do not end up paying the same amount.
The three pricing tiers approach has also been proven to increase sales of the middle option – i.e. a higher cost version – the Enterprise version makes the middle option look relatively cheaper (see our blog on relative prices – price value).
You will notice that the middle option has been highlighted and helpfully called “Most Popular Option” – this is in line with the work done on Influence by Cialdani – where simply highlighting an item on a menu significantly increases sales.
You can also note that the “most popular option” is in the middle. Statistical studies show that items shown in the middle get selected more often – no matter what they are!
The example above is from Zendesk – an online service desk provider. You can see that the offer freemiums for each option and restrict something on the lower price options – i.e. restricting branding etc.
Order of pricing page: due to the concept of anchoring – there is evidence that putting the highest price first i.e. on the left of the screen can boost sales – as it anchors you to a higher price level. Note that these two examples do not use this approach.
Note: we do not intend to cover aspects of marketing and driving conversions on this short post. Of course there are many other ease of transaction systems (such as Amazon’s patented one click shopping), call to actions or social proof (such as testimonials and money back guarantees) that can be used to increase conversions. Those items are more in the realm of marketing than this blog intends to address.
See our related blog on what we can learn from restaurant menu prices.
As in everything – there are tricks of the trade that can really increase your conversions and nudge people into choosing the service you prefer to supply.
These pricing principals apply as much in a restaurant menu – as in online SAAS sales.
When you see a graded service offering by an online SAAS with a free trial – and one option highlighted – be aware that you are being manipulated into making a certain choice.
Other things you will of course see are discounts for month or annual, number of agent per month, potentially credit card surcharges.
The same goes at your favourite restaurant.
Check out the video below on the absurd psychology of restaurant menus:
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