I’m sure you’re constantly improving all aspects of your business like we do: adding new features to products, experimenting with prices, changing your logo and web site design, polishing user interface, tweaking AdWords ads and landing pages. This is a good strategy. It’s called Kaizen.
Let’s discuss one more element of software sales funnel – price table. Price table is a final element your customers see before making order decisions. It mostly depends upon the price table how many customers will proceed to order form and enter credit their card number. So, it’s very important to compose your price table properly.
I’d like to tell you about a real experiment with our own price table.
We produce and sell Dr.Explain, software for making on-line manuals, help files, and user guides.
We offer two types of licenses with different function set: Regular and Advanced. Also we offer discounted multi-license packages. Moreover, we offer upgrades from Regular to Advanced license for every package.
So, our old price table looked like this:
- There are too many options. It’s hard to understand their value and to choose from.
- There is no a recommended “Best value” option. Customers sometimes simply preferred the cheapest price.
- The difference between Advanced and Regular licenses isn’t explained. Users had to click on “Compare” link or contact support.
- The design is not visually appealing and looks outdated.
- Sometimes big companies ordered multi-user packages of Regular (i.e. cheaper) licenses while they easily could spend more and buy the same package of Advanced licenses. We lost that profit.
We wanted to get rid of these problems.
Currently, our new price table looks like this:
- There is no matrix anymore. Just a simple list of packages.
- The most popular single-user package of Advanced license is highlighted as recommended one.
- The differences of packages and of Advanced and Regular licenses are clearly explained.
- The modern design is more visually appealing and provides more confidence. Confidence is very important when we want people to pay for something.
- There are no multi-user packages of cheaper Regular licenses. We don’t loose extra profit anymore and have not to deal with upgrades for multi-user packages.
- For multi-user packages we show per-user price to prove the discount value.
I cannot tell for sure how these changes exactly affected our view/order conversion rate because sales are affected by too many factors. However, the benefits are obvious and we see that the number of orders get definitely increased while the number of presale questions (e.g. “What’s the difference between licenses?”) get decreased almost to zero.
This is a real improvement that cost nothing and gave the real effect. This is real Kaizen.
If you need design ideas for your price table simply Google for “price table design” images. There are hundreds of design samples suitable for different business models and product types.