In this guide to psychological pricing, we will see the most common types of strategies companies use today, examples of psychological pricing strategies, and how Strikingly can help.
What Is Psychological Pricing?
Psychological pricing uses tactics to influence consumer behavior through price points that appeal to their emotions rather than just their logic. These tactics include charm pricing, anchoring, decoy effect, scarcity, bundling, free offers, and personalization.
Importance Of Using Psychological Pricing Strategies
In today's highly competitive marketplace, businesses must stand out to attract customers and generate revenue. By using psychological pricing strategies, companies can differentiate themselves from competitors by creating unique experiences for buyers that appeal to their emotions.
Psychological Pricing Influences Customer Behavior
Psychological pricing also helps build customer loyalty by providing an experience beyond just offering products or services at a certain price point. By appealing to consumers' emotions and behaviors through strategic price points or promotions, businesses can create long-term relationships with customers more likely to return for future purchases.
How Can Strikingly Help Businesses Apply Psychological Pricing Strategies?
Strikingly is a website builder that provides businesses with a user-friendly platform for creating professional websites. While website builders primarily focus on website design and functionality, businesses can still leverage the features and tools offered by Strikingly to implement psychological pricing strategies. Here are some ways Strikingly website builder can help businesses apply psychological pricing strategies:
- Visuals and Design. Strikingly allows businesses to customize the design of their website, including visual elements such as colors, fonts, and images. Businesses can use the psychology of colors and fonts to evoke certain emotions in their customers and influence their perception of pricing. For example, red for prices can create a sense of urgency, while larger fonts for discounted prices can make them stand out more. Strikingly's design features provide flexibility in visually appealing websites that align with psychological pricing strategies.
- Product Presentation. Strikingly allows businesses to showcase their products and services on their website in various formats, such as images, videos, and galleries. Businesses can use these features to present their products in a way that influences customers' perception of their value and pricing. For example, using high-quality images and videos that highlight the features and benefits of the product can create a perception of higher value, justifying a higher price point.
- Discount and Promotion Tools. Strikingly website builder offers tools for creating discount codes, coupons, and promotional banners. Businesses can use these tools to implement psychological pricing strategies such as anchoring, displaying the original price crossed out and the discounted price more prominently. This can create a perception of a better deal and influence customers' purchasing decisions.
- Testimonials and Social Proof. Strikingly allows businesses to add testimonials, reviews, and social media integrations to their websites. Businesses can leverage these features to showcase positive customer feedback and social proof, influencing customers' perception of value and price. Positive testimonials and reviews can create a sense of trust and credibility, making customers more willing to pay the listed price.
- Customizable Pricing Plans. Strikingly enables businesses to create multiple pricing plans or packages for their products or services. Businesses can use this feature to implement psychological pricing strategies such as decoy pricing, creating a third pricing option that is less attractive but makes the other options look more appealing. This can influence customers to choose a higher-priced option that offers more value.
While Strikingly is primarily a website builder, it offers various features and tools businesses can utilize to apply psychological pricing strategies to their websites. By leveraging Strikingly's features, businesses can influence customers' perception of value and pricing, increasing conversions and sales.
Benefits Of Implementing Psychological Pricing
The benefits of implementing psychological pricing strategies are clear. Using tactics like charm pricing, anchoring, decoy effect, scarcity, bundling, free offers, and personalization, businesses can:
- Increase sales.
- Build customer loyalty.
- Create a sense of urgency among buyers.
In addition to these benefits, psychological pricing can assist companies in differentiating themselves from competitors by creating unique experiences for buyers that appeal to their emotions. This can lead to long-term relationships with customers more likely to return for future purchases. Psychological pricing is an effective strategy for businesses looking to increase revenue and attract customers.
With Strikingly website builder's tools and features designed specifically for this purpose, companies can easily implement these tactics into their online presence and start seeing the benefits immediately.
1. Charm Pricing
Charm pricing is a psychological pricing strategy that involves ending the price of a product or service with the number nine and, for example, pricing a product at $9.99 instead of $10.00. This strategy is based on the idea that consumers perceive prices ending in nine as being lower than they are, making them more likely to purchase.
An example of charm pricing in Strikingly website builder is their Pro plan, priced at $19 monthly. Strikingly uses charm pricing to make the price seem more affordable than if it were priced at $20 per month.
Charm Pricing Influences Consumer Behavior
Charm pricing influences consumer behavior by creating the perception of a better deal and encouraging impulse purchases. Consumers tend to focus on the first digit in a price and disregard the cents, making them more likely to choose a product priced at $9.99 over one priced at $10.
Benefits Of Charm Pricing
The benefits of using charm pricing include increased sales and revenue and improved customer perception of value for money. By using this strategy, businesses can appeal to consumers' desire for bargains and encourage them to make purchases they might not have otherwise considered.
Anchoring is a psychological pricing strategy involving setting a lofty price for a product or service and offering a lower-priced option. This technique creates an anchor point in the consumer's mind, making the lower-priced option seem like a better deal.
Strikingly website builder uses anchoring in its pricing plans by offering three options: Free, Limited, and Pro. The Free plan acts as the anchor point, with the Limited and Pro plans priced higher but offering more features.
Anchoring Influences Consumer Behavior
Anchoring influences consumer behavior by creating a reference point for comparison. Consumers tend to make decisions based on relative value rather than absolute value. When presented with multiple options, they often choose the one that offers the best value relative to the other options.
Benefits Of Anchoring
Using anchoring in your pricing strategy can increase sales and revenue. By creating an anchor point, you can guide consumers toward choosing a higher-priced option that still seems like a good deal compared to the anchor price. This can also help establish your brand as premium or high-quality.
3. Decoy Effect
The decoy effect is a psychological pricing strategy that presents a third option to influence consumer behavior. This option designs to make one of the other options appear more attractive. For example, if you are selling two products at different prices, you can introduce a third product that is priced in between the two. This will make the more expensive product seem less expensive by comparison.
An example of the decoy effect in Strikingly website builder would be offering three subscription plans for their website building services: Basic, Pro, and Premium. The Basic plan is $16 monthly, while the Pro plan is $29 monthly. The Premium plan offers more features and pricing at $49 per month.
Decoy Effect Influences Consumer Behavior
The decoy effect influences consumer behavior by making them perceive value differently based on the options presented. Consumers choose the option that offers the most value for their money.
Benefits Of The Decoy Effect
The decoy effect can benefit businesses by increasing sales of higher-priced products or services. By presenting a third option that makes a higher-priced product seem like a better value, businesses can encourage consumers to choose that option instead of a lower-priced one.
Scarcity is a psychological pricing strategy that creates a sense of urgency in consumers by emphasizing limited availability or time. This strategy is often used in e-commerce to encourage customers to purchase quickly before the product runs out or the promotion ends.
An example of scarcity on Strikingly website builder is when they display a limited-time offer for their premium plan, which includes additional features and benefits. The offer is only available for a specific period, such as 48 hours, and customers urge to upgrade before the deal expires.
Scarcity Influences Consumer Behavior
Scarcity influences consumer behavior by triggering the fear of missing out (FOMO) and creating a sense of urgency to act quickly. This can lead to impulsive buying behavior as customers feel compelled to take advantage of the limited-time offer before it's gone.
Benefits of Scarcity
The benefits of using scarcity in psychological pricing strategies are numerous. It can increase sales by encouraging customers to take action quickly, create a sense of exclusivity around your products or services, and increase customer loyalty by making them feel like they're part of an exclusive group.
Bundling is a psychological pricing strategy where businesses offer two or more products or services as a package deal at a discounted price. This strategy is effective because customers perceive the bundle as having more value than purchasing each item separately.
An example of bundling in Strikingly website builder is their Pro Plus plan, which includes website hosting, domain registration, and ecommerce features for a lower price than if each service were purchased individually.
Bundling Influences Consumer Behavior
Bundling influences consumer behavior by presenting them with an attractive deal that they would want to take advantage of. Customers are more likely to purchase a bundle because they feel they are getting more for their money, and it saves them time from having to search for each product or service separately.
Benefits Of Bundling
The benefits of using bundling include increased sales and revenue, higher customer satisfaction, and increased brand loyalty. By offering bundles, businesses can also upsell customers on additional products or services they may have yet to consider.
6. Free Offers
Free offers are a type of psychological pricing strategy that businesses can use to influence consumer behavior. In essence, free offers are incentives given to customers to encourage them to purchase or take other desired actions. These offers may come in the form of free samples, free trials, or even free shipping. An example of how Strikingly website builder uses free offers as a psychological pricing strategy is offering a free plan for users who want to create their website.
Free Offers Influences Consumer Behavior
Free offers work so well as a psychological pricing strategy because they tap into our natural desire for something that perceives as valuable but costs us nothing. When offered something for free, we get a good deal and are more likely to take action.
Benefits of Free Offers
The benefits of free offers as part of your overall psychological pricing strategy include increased customer engagement, improved brand loyalty, and higher conversion rates. Giving customers something for nothing creates a sense of goodwill and trust that can lead to repeat business and positive word-of-mouth advertising.
Personalization is a psychological pricing strategy that involves tailoring products or services to meet the specific needs of individual consumers. It is a way of making customers feel special and valued, which can increase their willingness to pay for a product or service. In Strikingly's website builder, personalization can be seen in how it allows businesses to create unique landing pages for each customer segment based on their preferences and interests.
Personalization Boosts Customer Engagement And Retention
One example of personalization in Strikingly's website builder is using personalized product recommendations based on a customer's browsing history or purchase behavior. This feature helps businesses increase sales by showing customers products relevant to their interests and needs. Doing so creates a sense of belonging and loyalty among customers.
Personalization influences consumer behavior by creating an emotional connection between them and the brand.
Create A Personalized Experience To Stand Out
In today's digital age, more than having a website or an online presence is required. With so much competition, businesses must find ways to stand out and create a lasting impression on their customers. One technique to do this is by making a personalized user experience.
Personalization is more than just adding someone's name to an email or greeting them with a customized message on your website. It's about understanding their needs and preferences and tailoring your content and offerings accordingly. By doing so, you can boost customer engagement and retention.
Think about it - when you receive an email or see an ad that speaks directly to your interests or needs, you're more likely to pay attention and take action. On the other hand, generic messages that don't resonate with you are likely to be ignored or even annoying.
- Collect Data On Users.
To create a personalized experience, start by collecting data on your users. This could include their location, browsing history, and purchase behavior. Use this data to section your audience into groups based on common characteristics.
- Create Targeted Content.
Next, create content and offerings that speak directly to each group's interests and needs. For example, if you run an e-commerce site selling clothing, you could create different product recommendations based on someone's past purchases or browsing history.
- Consistent Messaging.
The user experience should be consistent across all touchpoints, including your website, social media platforms, and email marketing efforts. Consistency is key when it comes to building trust with your customers.
In conclusion, psychological pricing strategies have become essential for businesses looking to increase their sales and revenue. By understanding consumer behavior and applying tactics such as charm pricing, anchoring, the decoy effect, scarcity, bundling, free offers, and personalization, businesses can influence their customers to make purchasing decisions that benefit the company.
Strikingly website builder provides an easy-to-use platform for businesses to apply these strategies. With its user-friendly interface and customizable options, Strikingly allows businesses to create a website that caters to their specific needs while incorporating psychological pricing tactics.
Therefore, businesses need to take action and implement these strategies in their marketing efforts. By doing so, they can increase customer engagement and ultimately drive more sales. Take advantage of the opportunities that psychological pricing offers - start implementing these tactics today!