Take a quick look at pricing pages of most web services and products. Most offer 3 or 4 versions that differ in features, usage (number of users, responses etc) and of course price. In every pricing page I visited (sampling, not comprehensive) the first attribute is always price. Some of the pricing pages use font and other highlighting to make pricing prominent.
What if price isn’t the first attribute you present to your customers?
What if your pricing page pitches the benefits of each version before it talks about price?
What if price is the last attribute for each version listed in your pricing page?
Last week I wrote about the difference between the Price leader and Price-Less leader*. The core idea was to start the conversation with your customers about all other attributes but price. When price is not prominent, you get to talk to customers about factors that are relevant to them.
A version of the concept of Price-Less leader was published in Journal of Marketing Research Dec 2009. The article used the term “Benefits leader” instead of “Price-Less leader” and they made a very relevant finding,
“When customers choose benefits leader (purely based on benefits and without price information) they tend to stick with that choice even when the price information is revealed. Even when faced with a higher price, they tend to stick with their choice based on benefits”
Applying these findings to pricing page, I hypothesize, when price is listed as the last attribute:
- More customers will pick your higher priced versions
- More customers will signup for your basic version (higher conversion)
This hypothesis is based on previous research on pricing but from a different context. So it is worth testing for your pricing page before you roll out. This is definitely worth adding to the A/B testing that you probably are already doing for the rest of the pages. I recommend this A/B testing despite my earlier warnings about A/B testing.
Note that I am not recommending that you do not show the price at all or show it only after customers sign up – I am recommending that you move the price to be last attribute you list under each version.
I am every interested in hearing your results. Send me a note on your results, even if you did not find statistically significant difference.
For the analytically inclined: If you do not want to do the traditional A/B testing you can use Bayesian. But I do not recommend a full blown Bayesian verification in this case.