7 Pricing Techniques to Optimize Conversions Online

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7 Pricing Techniques to Optimize Conversions Online

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Moving your audience along the sales funnel takes considerable time and effort. You’ve worked on great content, built email lists, and nurtured leads with great care. Once your audience has moved to the purchasing stage of the journey and they’re on the pricing page, you want to create as smooth an experience as possible.

Getting your product pricing right is the final stage of the sales process that can determine the success or failure of your entire efforts.

Which is why you need to bring the best practices into play so that buyers feel comfortable enough to simply go ahead and buy from you.

How can you do that? We’ll explore some powerful pricing techniques in the following sections to help you learn how.

Ways to Optimize Your Pricing

Setting a price and creating a high-converting pricing page is not as simple as it seems. From the very beginning, businesses have used psychological and market-tested methods to do the following:

  • Reduce a customer’s perception of risk when buying something new
  • Create urgency to compel a user to take immediate action
  • Offer a high-value proposition by creating price comparisons

The more time and effort you put into optimizing your pricing, the better your conversions will be. One study found a strong correlation between the time spent building a pricing page and the number of conversions.

So, here are some effective pricing strategies to help you create more customers.

Offer a Limited Number of Choices

More is not better when it comes to your product plans and pricing. A study by two psychologists showed that fewer choices lead to better conversions. The study found that a table with just six varieties of jams outsold a table with 24 varieties at a local market. This is because the more information people have to process, the more fatiguing it is and this leads to users giving up before completing their purchase.

What this means for your business is that you should provide no more than three or four options for your product and pricing plans. This ensures that your users don’t get overwhelmed with too much information and choose the right plan for their needs faster.

Effective pricing pages often include just three options

Anchor Your Plans

Anchoring is a psychological concept where people use the first information they see as a way to judge any new information that comes after.

Businesses have used this phenomenon to induce customers to be more open to the price at which a company wishes to sell its products.

Let’s look at the following image to make this clearer.

Many businesses place the most highly-priced plan as the first option or they make it very visible. When a customer compares the price of this plan to the other options, it makes the lower-priced solutions more attractive.

Use Language That’s Easy to Understand

When your users are at the pricing page and ready to buy, they’ve already done their research and are about to take the final step of buying.

At this point, you want to make the process as easy as possible by keeping the language simple. Avoid lengthy sentences or even paragraphs of text. Here, your goal is to present different options with as few words as possible.

Create comparison tables to differentiate between plans and disclose more details only when users look for them. For example, by adding hover text when users point their mouse over a term or feature.

We’ve seen several images, so far, that show pricing plans created with simple and easy to understand language. Make sure that you follow similar lines on your own product pricing page.

Leverage the Fear of Missing Out

FOMO is another psychological phenomenon that’s commonly used in marketing. We experience the fear of missing out in many ways. Many people stay hooked on to social media because of this.

Sixty-nine percent of Millenials experience FOMO more than any other group. And 60% of them make reactive purchases because of it.

By leveraging FOMO, you’ll be able to create a sense of urgency that drives users to buy your product.

As the image shows us, many eCommerce platforms use time-based tactics to drive up sales. You can do something similar on your site by adding a countdown timer and give users a limited time to avail a major discount or some other offer.

Highlight the Best Option

Another way to help your users is to highlight the best or the most popular plan you have. Doing this is a form of social proof as it tells your audience that other people have bought from you. And that the highlighted plan offers the features they’ll need. It’s another way to lighten the user’s task of processing information and making a decision. If you look at the images in this post, you’ll find that all the pricing plan tables clearly highlight the best or popular plan.

Reduce Your Buyers’ Risk

Every time a person buys something online, they’re assessing the risk they’re taking. These risks include whether the product is worthwhile, if they’ll get good support, and whether the transaction is safe.

You need to offer evidence that buying from you is a risk-free experience. And there are a few practical ways to do that.

  • Add secure payment methods and display badges that highlight this
  • Offer a risk-free, money-back guarantee if your customer isn’t happy with your product
  • Give your audience a limited-time trial to work with your product

By providing your users with these options, you’ll improve your conversion rates and build a loyal customer base.

Inform Your Pricing Decisions With A/B Testing

We’ve looked at several helpful pricing techniques that you can immediately use to boost your conversion rates. But every business and market will have unique features and the only way to figure out the best pricing technique for you is to test it out.

An A/B Split Test is a technique where you show your audiences variations of your prices and plans. You can then measure the different reactions i.e conversion rates that each variation creates. This will help you decide which option is the best for your business.

Doing a split test is important because you’ll rely on data over vague ideas. You’ll create the best chance of improving your pricing conversions fast.

There you go, we’ve covered some of the most important techniques there are to boost your conversions through pricing. With the help of the tips given here, you’ll make the final step of the sales funnel smooth and make all your marketing efforts worthwhile.

7 Pricing Techniques to Optimize Conversions Online

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