Re:What I Learned From Increasing My Prices
by codegeek on Thursday July 26, 2012 @03:37PM
(#4298141)
I really liked reading this. Giving relevant names/titles to pricing tier can be very effective. I immediately understood the diff. b/w freelancer vs studio instead of saying Basic vs Premium.
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Re:What I Learned From Increasing My Prices
by DeepDuh on Thursday July 26, 2012 @09:07PM
(#4299506)
I think the naming might have yet another effect: Customers now feel an association to one of the tiers. For a studio customer to buy the 'freelancer' tier might feel unprofessional / dishonoring. I'd like to know how much effect just the naming alone has vs. the price / feature changes.
I had more people signing up for the higher tier plans when I a/b tested the plan names. Don't remember what the numbers were exactly but it was interesting to see behavior change because of the plan names.
Re:What I Learned From Increasing My Prices
by politician on Thursday July 26, 2012 @11:41PM
(#4299913)
Have you watched Dan Ariely's TED talk on irrational decision making? Your revised pricing tiers reminded me of the discussion about tom, jerry, and "slightly ugly" jerry around the 15:00 mark. If you haven't seen it, it's interesting that you've stumbled on the effect independently.
You might find that further tweaks push more people to the agency tier by creating a "slightly ugly" agency instead of a "slightly ugly" studio -- freelancer.
http://www.ted.com/talks/dan_ariely_asks_are_we_in_control_o...
Love that talk, thanks. I do have some ideas for tests I want to run in the future when I get back into optimization mode.
I've wanted to a/b test my plan name but don't know of any good alternatives. I have a free WordPress plugin and have a paid-for version which adds more features so it's called generically 'Premium version'.
The people who buy it come from different backgrounds and I don't want to segment the product.
It's a recipe plugin and the premium version adds a nutrition tab to satisfy the nutritionists and category listing pages for people who want to organise their recipes more than what the free version allows.
Any thoughts on a name?
Don't take it the wrong way, but you're trying to squeeze your users into the rigid frame of your preconceived notions about who they are. Changing people is a very difficult job. I understand you put a lot of effort into your product and feel entitled to steer it as you see fit, but it's far more productive to do what the topic post suggests - ask the users who they are and what they care about. In other words, reconsider your decision not to segment.
mmh how about "Hobby" and "Passion"? I got nothing. To be honest I'm not sure whether those features are a good way to diversify, but then again I probably don't know enough about your product.
Re:What I Learned From Increasing My Prices
by jmccaffrey on Thursday July 26, 2012 @06:32PM
(#4299088)
Yeah, the relevant naming was great. Seeing it go from rough segment clustering to your website design was very neat.