The power of digital psychology
Background
During my work in the Conversion Lab team we were looking for opportunities to increase the amount in the shopping cart per user. We started experimenting with the pricing table to try out different solutions.
My Role
Growth designer
Concept, Experiment owner, UI design
The package order
We had a first success by switching the package order to descending price order. We suspected that this was due to a psychological phenomenon called the anchoring effect. In our case the high price point of the GROW package on the left prominent position acts like an reference point that influences an individual’s perception of the highlighted package in the middle. As a result we saw an significant increase of sales of the START package.
Expand the package table
What if we reinforce the anchoring effect with a higher price point and find a way to place the more expensive GROW package in the highlighted place in the middle?
We had the idea to add two new packages with higher price points left to our traditional packages. To reduce the effort for this experiment we bundled existing Add-ons with our packages and created the GROW-LEGAL and the UNLIMITED package.
Our assumption was that due to the higher price point of the first package on the left and the new position of the GROW package in the prominent middle of the pricing table, more people will select the higher priced GROW package.
The result
We implemented an A/B experiment setup with the 3 package table as control group and the 5 package table as test group. Although we converted a bit less pay users in the Test group, new users paid significantly more than in the control group. This is because users that select the START package in the control group choose the GROW package in the test group. After a series of follow up experiments to balance the loss of overall conversion in the test group and the change was implemented to the company pricing & package table.
Some key learnings:
- Digital Psychology matters. There is a lot of power in behavioral psychology, persuasion and neuromarketing. And there is also a lot of research you can find. Unlock this power if it makes sense for the product.
- Good experiment results often come with costs. In this case we overall converted less pay users in the Test group because the package table got more complicated. But we took the win and iterated with follow up experiments to reduce the costs.