Get your customers to understand the relative value of both price and value and you'll convert more visitors.
There are way too many companies that have set up pricing tables with "packages" for their products without a solid understanding of the psychology behind package design. One of the first e-commerce companies to do this well was Dell. Nevertheless, while often imitated, many companies that offer software or services and offer it in different packages are simply playing monkey see, monkey do.
Dan Ariely explains in his excellent book "Predictably Irrational" that, "Humans rarely choose things in absolute terms. We don't have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly."
Let's dissect that; first, by understanding the word "value." Roy Williams explains, "The value of an item - in the mind of a consumer - is simply the difference between the anticipated price and the price on the tag. When the anticipated price is higher than the price tag, it's a 'good value.' When the anticipated price is lower than the price tag, it's a bad value."
Our job as the marketer is to position the benefits of our products as having significantly more value for the price than our customers anticipate. The second thing to understand is the term "relative advantage." What happens here is that your customer is comparing your offered "packages" to what they may have seen elsewhere, and also with the other "packages" you are offering.
Dell's formula for pricing table success was to have the lowest priced item available anywhere as the entry package (package A) and then offer two other packages to compare that to. The reason this is so important is because your customer ends up comparing package A to what they may have seen elsewhere (caveat - theirs was the cheapest option). Then design package C (the premium option), and only then build package B knowing that customers would compare the relative value of A versus B and B versus C. This forces you to spend more time building up the value of package B in your customers' eyes.
This is why it is often best to construct three packages, and many companies like to start their package A with a free offer so that it's compared to other external offers, and then build value from there. In my last column, we discussed how the price of free is perceived in direct proportion to the value experienced. There is an incredible amount of psychology that goes into "packaging" and pricing and I won't shortcut in this column. Rather, once you have thought intelligently about these packages, there are a few design techniques you can leverage to make your offers stand out better and design your pricing tables more effectively.
Above the Fold
Never forget my best advice for making sales - if someone asks for a price, give them a number. Anything but a number raises anxiety and doubt. Forget what sales trainers taught the world pre-transparency. If you hide the price, you lose. So, if they click on your pricing page, show them your table and pricing above the fold.
Emphasize One Option
We often want to make one of our packages stand out among the other options. There are at least three ways to do this:
Here is a great example from ScribeSEO that uses all three principles.
Lay Out Features/Benefits Intelligently
Don't overwhelm your visitors with too much information. You have to make it easy for them to understand your offer. Hopefully you have done a good job of establishing your products' value before they get to your pricing page. Your pricing page is not the place to list every feature. Here is an example of killing your visitors with features:
When you overload them with features, they have a hard time zeroing in on anything that might really matter to them. If you have too many benefits to list, then at least group them the way Quicken does, which allows the visitor to open up the group to see an expanded list.
Calls to Action
Calls to action should stand out. The key to this is contrast, and be obvious from the moment a visitor lands on your page. The visitor should always know the next step they should take. Carefully consider the wording of your call to action. Also, if your pricing table scrolls, consider calls to action above and below the fold.
Adding testimonials, third-party validators, and client logos to the page as point of action assurances to help with social proof can be quite effective. Just be sure they are moderated with tools like Mass Relevance's Conductor, which allows you to show your curated tweets but applies rules and filters before they show up on your page, because you don't want to see the wrong type of tweet in there:
Hopefully this gives you some ideas of how to design effective pricing tables, but if you need additional inspiration, check out some of these galleries:
Price and value - get the customer to understand the relative value of both and you'll convert more visitors.
What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!
Bryan Eisenberg is coauthor of the Wall Street Journal, Amazon, BusinessWeek, and New York Times bestselling books "Call to Action," "Waiting For Your Cat to Bark?," and "Always Be Testing." Bryan is a professional marketing speaker and has keynoted conferences globally such as SES, Shop.org, Direct Marketing Association, MarketingSherpa, Econsultancy, Webcom, SEM Konferansen Norway, the Canadian Marketing Association, and others. In 2010, Bryan was named a winner of the Direct Marketing Educational Foundation's Rising Stars Awards, which recognizes the most talented professionals 40 years of age or younger in the field of direct/interactive marketing. He is also cofounder and chairman emeritus of the Web Analytics Association. Bryan serves as an advisory board member of SES Conference & Expo, the eMetrics Marketing Optimization Summit, and several venture capital backed companies. He works with his coauthor and brother Jeffrey Eisenberg. You can find them at BryanEisenberg.com.
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.