6 Online Pricing Models That Do The Trick
You’ve created a website, improved your product, and your online business is up and running. You’ve built a series of plans that you’re proud of and know what you want to charge, but you’re concerned about conversions. Will your product actually sell? What can you do to increase your chances?
You look at your pricing page and wonder: Are we doing it right?
If you look around the web, you’ll see tons of online businesses that are making it work. They show off their best plans, think carefully about colors, and do their best to reach their audiences.
As a web company, you want to be one of the companies that are doing it right. Join the ranks of the best with these 6 pricing models that do the trick.
1. Lead eyes to your best plan
Do you have a best-selling plan or believe that one of your products provides the most value? Don’t hide it from your customers.
Instead, inform your customers of their best option. It will help them choose and encourage them to convert!
Take a look at Grasshopper’s pricing model. Grasshopper, the entrepreneur’s phone system, sells 4 different plans.
Grow, the company’s most popular plan, is clearly labeled. It also pops out from the screen so that it’s the most prominent.
Users are not only likely to choose Grow because it’s the Most Popular, but they’re also likely to give it consideration because it looks different than the other plans on the screen.
Learn a lesson from Grasshopper. Pull prospective eyes to the plan you want them to choose.
2. Use the 9 Trick. It works!
Think you’re better than the good old $.99 trick? Think again.
Brick and mortar stores as well as online companies price their products using the number 9 to make them seem less expensive than they actually are. It’s not just some crazy idea—it’s backed by science. In 2008, French researchers did a study revealing that prices ended with 99 do the trick!
”We tend to put numbers in categories like ‘under £5′ or ‘under £6′ – rather than them representing a value,” Dr. Jane Price, a psychology professor at the University of Glamorgan told the BBC. “Shoppers are aware of what is going on, but don’t respond to it because they don’t think logically about how close numbers are – such as £99.99 and £100.”
Dispop is a good example. As you may already know, the company offers services to those looking for banner design services. All of the product prices end with the number 9.
3. Make sure the buying process is seamless
Ever abandon an online shopping cart or stop an online purchase when you’re halfway through?
Yep, you probably have. And yes, you’re not the only one.
If someone is in the process of buying your product and gets caught up on a small detail, loses data, or gets confused, they may not complete the process. It’s your job to make sure purchasing your product is as seamless as possible.
Look to Etsy as an example. When a user goes to buy a product on Etsy, it’s easy. Each step of the process is clear. Not only that, the site syncs with PayPal, making transactions even simpler. If your business is new, consider using PayPal, Amazon Payments, or Google Checkout. They’ve done the work for you and give your customers an easy purchasing experience.
If you don’t know whether or not your payment process is intuitive, test it. Have employees, friends, freelancers, and others try it out. Listen to their feedback, watch the buttons they click, and make changes accordingly.
4. Name plans to entice the audience
Who wants to buy a plan called “Most Expensive Plan?” Certainly not the buyers I know! If you name your products enticing names, the prices will seem well worth it.
Often, names match the company brand. Frog2Prince, an online dating consultancy, humorously names it plans Tadpole, Prince, LilyPad, and King. How cute!
The content marketing software company names their prices Standard, Pro, and Enterprise. If companies can afford it, they’re likely to jump from Standard to Pro. After all, what company wants to be Standard?
5. Use Color to Convert
The colors you choose can be powerful, so don’t just pick the color of your logo or website. Blue creates a sense of trust, security, and stability, while black instills luxury and wealth. Red is a great color for “act now” or “buy now” buttons, as it increases heart rate and encourages buyers to act as soon as possible.
Colors affect purchases, so act accordingly. Just check out this infographic from KISSmetrics if you don’t believe me!
Marketing software company, HubSpot, uses orange as their go-to color. Sure, orange is part of the company’s branding, but it’s also a great color for converting. According to the infographic, orange is “aggressive” and makes a great “call to action, subscribe, buy, or sell.”
As you can see, HubSpot’s Professional Plan glows. It’s radiating! I want to try it out, don’t you?
6. Don’t Ask for Too Much Information
If a potential customer has to spend a full half hour filling out a form with their information, they’re likely to get distracted, ditch your website, and move on. To prevent that from happening, don’t ask for too much information.
Facebook is known for having more personal information than any other social network or private company, but look how little you need to sign up. With your name, email address, birthday, and gender, you can get started on Facebook.
Just because you don’t ask for information at the beginning doesn’t mean you can’t ask for it later. Once you have customers in the loop, you can reach out to them by phone or email. You can allow them to fill out further information in their customer portal.
Facebook’s product is free, but it’s still an excellent example of how little info is needed to get started. What a cinch.
Are we doing this right?
When you start a business and begin pulling everything together, it’s tough to know whether or not you’re making the right choices.
That’s why it’s worth taking notes from the experts. Companies all over the web are successfully creating pricing plans that convert. Now, it’s your turn to jump on the bandwagon!
You won’t be sorry to have pricing models that work.