3+1 psychological pricing strategy to grow conversion rates
Pricing and finding the best pricing strategy are very important for all businesses, especially in e-commerce. Because of this, it is vital to follow the rule: think like your customer. The different psychological pricing strategy methods can offer you great help when it comes to conversion rates and finished purchases.
Psychological pricing uses prices to influence the customers’ buyer behavior and as a result, have a higher profit. So the goal is to fulfill some of the psychological needs of the customer, for example, to save money, to get the best possible quality product, or to make a good deal.
The magical 9
When it comes to pricing, 9 is a magical number, and if you have not applied its magical power, now is the time to do so. The secret of 9 comes from the fact that this number is often used when there is a discount or promotion. It is very simple: 190 EUR seems less than 200 EUR and has a power that will make the visitor become a customer even if there is only a 10 EUR difference. According to studies, this comes from the fact that visitors normally check the left side of the number and not the right side so they round the numbers down. This strategy mainly works for visitors that are looking for discounts.
Prices in comparison
In this case, the pricing is not based on changing the product’s price but rather on how you position it compared to other products.
The visitor will compare prices for sure, before hitting the purchase button - not only within one webstore but also on the competitor webshops too. It is useful to offer a premium range and cheaper options too. This way, you will make them compare, make it possible to have a big picture about the service and the price that they would happily pay.
To purchase more than one product together is cheaper, easier, and more practical.
Think about it: you buy nice, quality shoes. To stay durable for a long time, you’ll need a shoe polish, maybe even a shoe brush. If you can get this in one package - plus some discounts - you will not only save money (because if you bought it one by one, it would be more expensive), as it is much easier to buy the bundle than to put all the products in the basket one by one.
To make the visitors feel like missing out is also a good method of psychological pricing. ‘Don’t miss it’ and ‘Only until there are stock’ messages or showing these words next to the product when there are only a few left, make the product time-sensitive and the visitor will be more likely to act - purchase -. When using PriceKit, you can easily and quickly set bidding steps and use psychological pricing.