Price anchoring can be a powerful tool in guiding customers towards a specific tier or product.
In this episode, our experts delve into the psychology behind the bandwagon effect and reveal how to strategically apply it to your pricing strategy. Learn the secrets of price anchoring and discover actionable techniques to drive customers towards your desired offerings. With expert insights and real-life examples, this episode will equip you with the knowledge to create a more effective and appealing pricing structure. Don't miss this fascinating exploration of price anchoring and the bandwagon effect!
Welcome to 20 days of pricing tips—part 4. I’m Brett, a member of the pricing team and I’ve worked on 41 pricing projects. Today we're breaking down Price Anchoring.
Humans are naturally indecisive. Some decisions can become so debilitating that some folks might even walk away because of the anxiety. You have likely experienced this yourself when shopping or even when deciding what to watch on Netflix. The same is true in the world of SaaS and can be magnified with complex product features and across a multitude of tiers.
To combat this, you can drive customers to a specific tier or product using a psychological phenomenon called the band wagon effect.
We often see this on pricing pages in the form of a plan labeled as “Most Popular” and visually highlighted to create a frame of reference for the buyer. This, paired with proper value-based price points can help buyers make a quick purchase decision when evaluating your pricing page.
Thanks for checking out our pricing tips. If you want to connect with our pricing team email Patrick@profitwell.com and we’ll send over the intro.