Grasshopper Test
| VERSION B | |
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How site visitors voted:
VERSION A (58%)
VERSION B (42%)
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Actual Test Results:
“I was surprised by how such a little change (i.e. the order of our 3 plans) could have such a dramatic, positive effect on our bottom line (24.2% increase in monthly recurring revenue),” said Jeremy Butler, Online Marketing Manager, Grasshopper. Grasshopper’s in-house marketing team used Omniture to test the order of its 3 advanced phone number payment plans for small businesses. The hypothesis: by changing the payment plan order from ascending to descending more people would sign up for the middle price point ($49 per month). They thought if people saw the highest price point first, they’d be more likely to consider the middle price point. After 3 weeks conducting the A/B test they found out their hunch was right. 49% more people purchased the middle payment plan when the plans were listed highest to lowest. WhichTestWon.com is sponsored by: WiderFunnel Conversion Optimization, the A/B and multivariate testing firm that guarantees your ROI. Click here for info on improving your site’s results — risk free – today! |
Great site Anne!
This same price-ordering is effective–and is a recognized rule of thumb–for direct-mail donation drives.
Here’s the psychology behind it: the presentation of the first, higher amount, makes the lower amounts seem less intimidating… more appealing… and more “do-able” from a budget perspective.
It’s tantamount to a late-night infomercial announcer shouting, “No, you won’t pay $200… not $150… not even $100…. you get the entire system for just $49.95.”
The “set up” of presenting the higher amounts makes the smaller dollar figures look that much lower.
Keep ‘em coming, Anne!
Success!
Drew Eric Whitman, D.R.S.
Direct Response Surgeon(tm)
http://www.AdSurgeon.com
http://www.Cashvertising.com
I thought the test was asking which was easier for the consumer to understand–not the bottom line of the company. You might want to be more clear in your questions.
The left-most price would be the first to be seen. This established the value of the product. In case B, $49 was a discount. In case A $49 was a expensive compared to $9.95. This is one reason that “freemium” business models are so hard to make work. Once it’s free, anything is expensive.
Another great example, Anne!
You’re right, Drew, that the left-to-right eyeflow can have a psychological effect.
In my years in sales I learned the power of starting with a high price and slowly moving down, and also the benefit of giving three options with the one in the middle being the one you actually want them to choose.
Many sales and direct marketing principles transfer seamlessly online.
Chris
Thanks for the write up Anne – great post.
Brian you hit it exactly – with the first thing on our page before being the $9.95 no one saw past it, but with $199 being the first thing now its drives people to the $49 price point.
Thanks for the positive follow up.
When you see the lowest price listed first, then that’s where your eyes stop. Listing the higher option in first place makes you look beyond that price to a lower option, hence the middle choice.
Wow! – big eye opener.
What’s funny is that I am all over that type of pricing when talking with clients, but I blew it on this. I should know better…
I wonder which one got the most $199 sales. Of course, I’m sure the revenue from the 49% increase in mid-range pricing more than makes up for any loss or minor gain in those. Great test. Love the site.
This was a fantastic test. I can’t reach out to my webmaster fast enough now to make necessary changes…
[...] 24% more reoccurring monthly revenue – Grasshopper.com [...]
I was an old gotvmail customer and just the other day went to that page. I was part of the low to high group. Interesting.