4 secrets to better subscription pricing psychology
1. Pay attention to median pricing
Successful tiers pricing comes down to The Goldilocks Principle. Customers are most likely to choose the media option. They like to think they can afford more than the lowest tier and exercise savviness by avoiding the most expensive tier.
2. Give your customers billing options
Only 20% of SaaS companies offer both annual and monthly plans. Conversions will be noticeably lower if you tie consumers into monthly payments who would rather pay upfront or insist on an annual fee from subscribers who can’t afford the full price upfront.
3. Put customers in a good mood
Decisions often come down to the mood we’re in when we make them. It may feel as if you’ve little control over how customers feel when they’re on your pricing page, but by investing in good design and copy, you can reduce customer frustrations.
4. Beware the anchoring effect
We tend to rely on a single piece of information to make a decision. It is often the first piece of information we see, so it comes to pricing—first impressions count. Consider carefully which prices or elements to highlight.
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