How to better display pricing online for your plans, products, and packages.
5 extremely important psychological elements to use
The Compromise
The compromise effect essentially says:
People got a lot of decisions to make. It’s often hard, if not improbable, to estimate all kinds of different choices and selections and criteria. So they normally tend to compromise!
What does this mean for you?
If you have a plan, products, and packages, you better break them into two or three different options.
You would preferably display a low-priced option, a middle price, and a high-priced option.
Place the one that you want to sell most (the option that you design to bring you the most margins) in the middle as the real compromise option for your clients.
Why?
Because the middle option is the one that will get the most attention and sales.
Design this type of offer, and you will find out that by having a higher-priced option, you will be able to capture 10 to 20% of the market that wants your premium option, and you will be able to capture the 10 to 20% of the market that is searching for a budget choice.
As a tip, you can make your middle offer (option) or compromise option extra appealing by labeling it ”most popular”.
You can make it more valuable by placing your higher price option sensibly higher, exercising the advantage of a law known as anchoring.
Anchoring essentially gets the advantage of the first piece of information, in this case, the first price your clients see, as a mental anchor that they will use to compare all future prices and choices.
If the first price you display to your clients is noticeably high or way more expensive, all that comes after will seem a lot more budget-friendly and convenient.
Plus, if you are displaying them side-by-side, for example, your three different price plan options, and making the high-priced option to get anchored first (seen at first), your clients will perceive that compromise options now as an even better deal.
Choice Overload
The previous couple of examples we discussed are three different options: low price and price high price, but what do you want to promote more., showing all the prices and all the choices?
It would be an enormous mistake.
When you propose too many choices, essentially, you limit to an extreme the possibilities of someone taking any of them. If clients would take action, there is a very high possibility that they will be dissatisfied with the decision they made.
This refers to many other psychological reasons, but it must resonate with you that the final result will be an ultimate lose-lose situation. Your clients will be dubious about making a selection, and if they do take action, they will not be happy.
Your task for your dedicated product page or sales page will always be to eliminate confusion and to simplify everything for your customer. Because they are smart and we need to avoid making their brains naturally overanalyze and over-process everything in your web page, this will lead to inaction.
The customer journey must be a smooth process that does not drive any clients to overthink, showing the relevant choices most simply and directly at every stage. Your task is to craft the sales page and the funnel in every which way to help your customers walk through every important step.
The Loss Aversion
The loss aversion trigger is simple.
With no surprise, people hate missing out on things.
This is why FOMO becomes so famous in marketing.
The fear of missing out.
This is one of the most helpful tools you have at your disposal as a business owner or a marketer.
Using scarcity or urgency, sometimes also any incentive that’s going to disappear.
This involves setting some real and genuine deadlines or some limited supply.
Use the famous IKEA effect extensively when you are crafting your plan or package offers.
The IKEA effect
The IKEA effect is a truly amazing phenomenon.
According to this effect, people, your clients, value things more when they perform a part in their production.
Using this classic but very potent effect, many marketers offer a lot of involvement for the customers in their sales proposals.
This involvement can include a consultancy call, questionaries, a done-for-you process, and drafts made with you to create a strategy in the future and make it easily repeatable (actually, this is my style).
Include any kind of advising, added files, contact points, make the clients spend time and energy in the process, to improve engagement and connections with you and your products.
Insert those features in a well-designed value box and highlight them.
Keep asking for comments and notes also after the sales are performed.
The last tip that will be extremely valuable for your web page.
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The Blind-Spot Bias
The blind spot bias says that all of the elements we just listed here, even when you tell your clients that you are using them against them, the psychological factors are completely invisible.
It is a bit counterintuitive but simply true. All of these elements are absolutely invisible to the clients you’re trying to talk to.
These psychological activations are deeply rooted in our organic structure and our psychology as human beings. We cannot notice when they are actively being used upon us.
Your client’s brains and yours are busy places, and they have to rely on many different mental shortcuts from the Limbic brain to assess information and advise themself in making choices promptly.
I extensively talk about this also in one of our SEO plans sales pages. See it yourself.
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