9 Psychological Insights I Use When Designing a Pricing Page

Let me be upfront with you.

I’m not a web designer.

I work with some amazing web designers. I know a few things about web design. But when it comes right down to it, I’m not a designer.

What am I? I’m a marketer.

Why am I talking about designing a web page, specifically a pricing page?

Here’s why. Web design and marketing overlap. A lot.

When you get into a discussion about web design, you can’t help but talk about psychology. And when the page being designed is a pricing page, psychology plays a huge role.

What kind of psychology? Customer psychology.

Customer psychology is the study of the way people think, act, decide, and make purchases.

It has everything to do with motivation, mind tricks, color, placement, filtering, eye tracking studies, and, yes, web design.

That’s why I’m confident in my ability to design a great pricing page.

I constantly A/B-test my pages to make sure I’m choosing the most optimal design, and most of the design choices you see throughout my web properties is based on simple psychological principles.

Psychology is common in marketing and design, regardless of the industry. Look at a casino, for example.

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Every inch of that building, from the carpet and floor designs to the signs and turns was designed to psychologically keep people in the building spending money, not focusing on time and outside responsibilities.

Web design is the same way. And when it comes to the pricing page, these psychological principles are extremely important.

Here are a few of the tactics I use when designing pricing pages—one of the most important steps in your conversion funnel. 

1. Devalue money in the viewer’s eyes

Since we’re on the subject of Las Vegas… Another trick casino owners use is the idea of mentally devaluing money.

When you step up to a table, they exchange your money for chips.

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Why? There are several reasons. One is that it makes it easier for dealers to count, but it also detaches people from the value of their money. It’s easier to gamble away two chips than $2,000.

A lot of people are in debt, and, while it’s great that you run a business, you need to get people to stop thinking about their bills.

The average user who looks at your pricing page might have in the back of their mind their consumer credit card debt.

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Maybe you’re not running a casino. How do you get people to stop thinking about their debt problems and instead focus on the value of your product, regardless of the price?

Let me give you an example.

Cornell researchers recently partnered with the Culinary Institute of America to research this concept of devaluing money on restaurant menus. Two different study groups were given two different menus, one with a dollar sign next to the pricing and one without.

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The group given the menus without the dollar sign spent more money. Why? Because they weren’t put off by the high $ price.

One example I’ve shown elsewhere is this pricing page. Notice the small dollar signs?

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That’s not a mistake.

The same thing is happening here:

image11

The dollar sign serves as a trigger to remind people of the value of money. What they should be thinking about is the value of your product.

A simple removal or minimization of the dollar sign will make your pricing page more compelling, more powerful, and more psychologically potent.

2. Color-coordinate everything

Research from the US National Library of Medicine and National Institutes of Health indicates colors are perceived in different ways by different people based on experiences, genetics, context, and other factors.

Still, there are brands of every kind that use specific colors within their logos.

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If you’re at the beginning stage of building your company, choose a color scheme that matches the emotion you’re trying to evoke.

There was a time when Geocities ruled the web and websites commonly looked as though they were drawn by crayons. Thankfully, we’ve progressed, so basic black text on a white background is considered standard for text (with a few exceptions).

Headers and buttons, however, can vary greatly. Amazon uses a yellow color for the “Add to Cart” button on its pricing pages.

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Walmart uses a red-orange.

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Best Buy utilizes bright blue and yellow for different options.

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Whatever you choose, make sure it speaks to your brand and is consistent all the way through to avoid confusing customers at a crucial step.

3. Size matters

Size does matter when designing a pricing page.

Here’s the simple truth. You want people to see the important parts first because that’s what needs to stick with them the longest.

Let me go back to this pricing page to show what I mean:

image00

What’s the first thing you look at when you see this page?

Probably the center column, focusing on the “Growth” package at $400 a month.

Why? Because it pops with a vivid blue against a very light gray backdrop.

Plus, it’s bigger than the others. Size is important. It’s also centrally located.

All of these are key differentiating features that psychologically emphasize the importance and superiority of that plan.

Where exactly does size matter?

  • Headlines
  • Call-to-action buttons
  • Price boxes (as pictured above)

As explained in Psychology in Action, larger fonts make messages enter our brains faster as we don’t have to struggle to see them.

This split-second difference of time and attention puts the page into a logical and cohesive, Feng Shui-like, order for browsers.

4. Limited time offers

If someone thinks their time to act is limited, they’re more likely to take action quickly rather than delay it.

Several studies have looked at how limited time offers affect our brains. Sites such as eBay and Groupon have practically built empires on the concept.

Essentially, it boils down to supply and demand.

When you create scarcity, the perceived value of an item goes up. It’s called a theory of psychological reactance, which explains why we hate to miss out on a golden opportunity when presented with it.

You’ve probably heard of fear of missing out, or FOMO, right? Same idea, different angle.

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Amazon uses this technique to great effect with constant inventory reminders on every item: “Only 10 left in stock – order soon.”

It’s a great call to action.

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Even though we know one of the world’s largest fulfillment centers will definitely replenish its supplies of literally everything, will it happen soon enough? Can we wait and will it be more expensive next time?

Dr. Eldar Shafir, from Princeton, and Dr. Sendhil Mullainathan, from Harvard, explored how people’s minds work when they feel they’re lacking something. The perception of scarcity leads them to make mistakes or bad financial decisions, spending more money than they should.

Psychology Today’s author Shahram Heshmat notes,

Scarcity orients the mind automatically and powerfully toward unfulfilled needs.

It also motivates us to prioritize our choices, e.g., we’re more frugal with toothpaste when the tube is close to empty, and we rush to purchase a product or service to obtain a deal.

5. Discounts and VIP membership

People love feeling like they belong. Costco, Sam’s Club, and AAA are just a few of the memberships you can get these days to feel like you’re part of a country club.

Everyone wants to be a VIP, so offering VIP membership bonuses and discounts encourages customers to keep spending money at your business. Instead of buying just one roll of paper towels, you can subscribe and save.

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Or buy 10 and get one free.

These promotions increase clicks because, as Ian Newby-Clark explains in Psychology Today,

We are social creatures who yearn to be included. We want to be a part of the group and strive for goals set for us.

It’s like a drug: belonging to something bigger than yourself provides a sense of purpose and meaning to our lives.

Marketing Profs has a great article describing how the inclusion of fans into a community motivates them to support a brand both as customers and ambassadors. I suggest you take a look at it as it’s a great read.

As psychologists point out, our social identity is defined by the groups we belong to. This is why Xbox and PlayStation fans, for example, are so prone to debating their platform’s superiority.

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The NFL, along with all other major sports organization in America, uses this psychological principle to its advantage.

Fans show up sporting their team’s colors and mascot costumes because it makes them feel like they belong.

Seattle Seahawks fans surround a Cleveland Browns fan as she mugs for TV cameras Sunday, Nov. 30, 2003 at Seahawks Stadium in Seattle. (AP Photo/Ted S. Warren)

Above: Seattle Seahawks fans surround a Cleveland Browns fan Sunday, Nov. 30, 2003, at Seahawks Stadium in Seattle. (AP Photo/Ted S. Warren)

6. Offer tiered pricing

As Talia Wolf points out,

Tiered pricing opens the door to all sorts of psychological techniques.

Hyperbolic discounting occurs when different pricing models provide different benefits, allowing us to personalize our shopping experience. Companies such as BuzzStream and CloudFlare employs this technique:

BuzzStream pricing plan
1-869780-resized-870w-screenshot-www.buzzstream.com 2016-01-28 22-42-59

CloudFlare pricing plan

1-96109-resized-870w-screenshot-www.cloudflare.com 2016-01-28 00-29-50

Choice-supportive pricing, anchoring effect, and the decoy effect can also be employed to your advantage. With tiered pricing, anything is possible.

Amazon has about a dozen varieties of Prime combined with rewards cards, affiliate bounties, and subscription services to give you payment options beyond just “cash or credit.”

Tiered pricing is becoming even more popular these days with the growth of the software-as-a-service (SaaS) business model.

By subscribing for longer terms, people know they can often save money and thus seek out these types of deals.

Rational choice theory is a framework to model social and economic behavior. It states individual actors choose the option that maximizes their interests and provides the greatest benefit.

A tiered pricing model provides customers with purchasing options that are all, ultimately, with you.

7. Doorbusters work

Retail has long utilized doorbusters to get people in the doors. These savings are responsible for Black Friday leaking further into Thanksgiving every year. Once you have people in the door to buy a low-priced item, you can upsell them better, more expensive products.

Any pricing page should also have a “recommended” and “similar” section. These personalized offers help lead consumers to buy the right item for them, increasing trust in your e-commerce brand along with the ROI.

It should be noted, however, you should avoid the classic bait-and-switch scam that will get you in trouble with the FTC and ruin the reputation of both you and your brand.

It’s also worth mentioning that many analysts think Black Friday is about more than just the doorbusters.

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Professor Jane Thomas at Winthrop University says:

It’s more of a tradition than anything else. People ritualistically line up at brick-and-mortar stores the Friday after Thanksgiving while a growing number wait for Cyber Monday the following week online.

There’s also a psychological difference in the way we perceive prices such as $13.99 vs $14.00. The item priced at $13.99 is more likely to sell because even though it’s only a penny short, it’s $13 and change instead of $14.

Although consumers initially hit a website looking for a cheap deal on SEO services, soon they realize they’re also missing social media, video, CRO, PPC, and many other aspects of marketing.

They want more.

That’s the value of the doorbuster.

The initial doorbuster brings them to you for a killer deal. You get them in and then convert them to buy more stuff.

8. Get smaller yeses first

Much like with the doorbuster sale, you want to lead people by convincing them to agree to smaller things before hitting them with the big ask.

Zendesk does a great job of leading customers through smaller yeses first:

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While the option is there to buy, Zendesk wants you to try the free version first because they’re confident you’ll come back as a paying subscriber once you’ve experienced the platform.

Who doesn’t like free stuff?

By convincing customers to say yes to the smaller ask first, you make saying yes to the bigger ask much easier.

It’s all part of the psychology of negotiation,

explains Heidi Grant Halvorson, PhD.

Making the pie bigger for everyone increases the maximally efficient outcome 79% of the time.

You don’t have to necessarily give out anything for free either. As explained above, even month-to-month subscriptions are a smaller ask than a year-long contract, so providing different levels of the same offer will do the trick.

9. Provide choices

As explained above, offering both payment and product choices is a great way to improve revenue on pricing pages.

A customer is buying a TV, do they need a warranty? Cables? A stand or mount? A DVD Player, home stereo system, or Chromecast?

Give people options for bundles, add-ons, and other available sizes, colors, and brands. But don’t give them so many options that they get overloaded.

In 2000, researchers S.S. Inyengar and M.R. Leper conducted a study allowing supermarket shoppers to sample the different flavors of jam available for purchase. The test compared the impact of having 24 jam flavors to choose from versus having only 6.

Only 3% of those who sampled the 24 flavors went on to purchase the jam, compared to 30% who sampled only 6 flavors.

Too many options will inhibit your customers’ ability to make a clear decision.

Conclusion

Psychology is important in web design and marketing. How people perceive a brand is directly impacted by the appearance of every landing page, including the pricing, checkout, and confirmation pages.

By A/B-testing different versions of those pages, while implementing the psychological principles discussed above, you’ll be able to optimize conversions and revenue streams from your online marketing.

What psychological techniques help you design your web properties?

Comments

  1. David Borrowdale :

    Powerful stuff. Knowing about these strategies is great for your own business, but does it also prevent you from being persuaded by other businesses?

  2. Hey Neal, what do you think about using an application-based signup model for higher ticket programs like $997+?

    Instead of showing them the pricing, directing them to an application and then converting off of a phone call?

    • I think it could be a very good idea Kevin. Just depends on good your offer is to convert them into a quality lead

  3. Fantastic post, I really learned a lot. The psychology behind all of this is pretty cool! Thanks for sharing!

  4. Jerome Perrin :

    Hi Neil,

    Perfect thoughts, as always.

    The first example and image you use in your post is brilliant. In Casinos, anti-design is THE key design strategy. Most people do not see that it is all about the money. And the people who wonder why casinos choose this kind of weird designs are the same wo will not wonder why they loose (and sometimes win) money in these casinos 🙂

    Many thanks again for this article. Great.

    Cheers from Paris

    Jerome

  5. Great post as always, Neil.

    However I am thinking, how can you ‘devalue money’ if your business is financial services?

    Say, you are a financial planner. And you sell financial planning service.What then, is the best way to entice the prospect into buying your service while advising them to spend money more presently?

    • Mayank Batavia :

      Kamelia

      I’ve observed a bit of planners pull this off in a number of ways. May be it might help?
      1. Boil it down to smaller numbers: Say it’s “At just $3 a day, get insured for blah blah $”, instead of $100 month, or $1200 year for insurance premiums.
      2. Show the benefits of what the accumulated savings/investments can do: e.g. $150,000 can take care of your xyz requirements, so why not shell out $500 today?’
      Perhaps you’re aware of one or both

      • Yeah Mayank, I’ve indeed seen those.It’s kind of creating an illusion of small expense while actually it is not.

        And personally, I don’t like this strategy. I’d rather quote the price and then support it by showing how much value the prospect is getting.

    • Create blog posts that give you advice away for free, that teach people how to spend more money effectively

  6. Alison Farley :

    Great post Neal. I’ve spent 20 years working in advertising for big agencies (BBDO, TBWA, ETC). Seasoned people in the industry tend to regard online advertising as “less than print and TV.” So annoying right. I think it’s because they’re intimidated by it. That’s why your post is so great. Nearly all of your psychological insights about online advertising comes from traditional advertising. Online is just the same as traditional advertising – just with different vocabulary. People in the ad industry need to stop being so intimidated by it! It’s growing old.

    • Yea online advertising absolutely stems from traditional advertising, and yes most of the psychological insights come from it as well. Thanks for your insight Alison

  7. So much to learn from you, Neil. I can’t thank you enough. I study customer psychology and follow every relevant blog posts of yours. I mention you and your posts in my website content. Reading your posts and learning every day. Will be back to read your next post.

  8. I love web-psychology!! The intersection of SEO/CRO really excites me.

    Nathalie Nahai has written a good book on the subject if anyone is interested in further reading. It’s called “Webs of Influence”.

    “Decoded” by Phil Barden is also good, but not totally web-focused.

    And obviously “Influence” by Roberto Cialdini, a must read for any marketer!

    • Hello Josh,

      Do you know any book exlcusively written on buyer’s mindset? Would be a great further reading.

      • Hi Siki,

        Hmm, I cannot think of one written solely on the subject.

        I would be interested in reading such a book if anyone else reading this comments has any recommendations?

        Thanks!

        • No problem, Josh. Let’s see if anyone can recommend any such book?

          Regards!

          • Hi Silki and Josh,

            You might want to take a look at “The secrets of closing a sale” from Zig Ziglar. Not exactly what you asked for, but you will find such things too. Make sure to see if it will fit your needs!

            • Thanks George, I’ve already read that one! The audio book addition by Zig is pretty awesome too!

            • Hello George,

              Thank you for the recommendation. I did not read this book. I will bookmark it. Currently I am reading “Mindset” by Dr. Carol Dweck.

      • Yann Toledano :

        First-time poster here. Just wanted to respond to let you guys know about this book by Phil Barden:

        “Decoded: The Science Behind Why We Buy”

        I think it fits the bill, check it out.

        • Hey Yann, I’ve actually read Phil’s book. It’s got some really great examples in it. The example about how the brain tricks the eye into seeing something that doesn’t exist really freaked me out!!

          • Hello Yann,

            Yes. I also got to know about this book from Josh. I will surely read it. Thank you very much for the recommendation.

          • You guys read ca$hvertising, how to make big money sell anything to anyone by Drew Eric Whitman?

            Awesome book.

        • Thanks for the post and suggestion Yann!

    • Thanks for the suggestions Josh! Will def at to my list. And yes “Influence” is a must read!

  9. Rocking it as always Neil !!!
    Your newsletter is one of the few that I look forward to receiving, thanks!

  10. Himmat Chahal :

    Very fun post. I have grown to love the overlap between Web, UX, and Marketing design. I agree that they are all inseparable; I would even argue that anyone involved in 1 should be trained (conceptually) in the other 2.

    Loved the examples for point #1.

    Would also love to hear if anyone has seen any clever pricing webpages, for very expensive products (5+ digit price range).

    • Joe Tannorella :

      Hey Himmat. What type of product or industry and you looking to find for examples for? Digital, SaaS, physical, B2B, etc.? Let me know and I’ll find you some examples via UIDB.io.

  11. Fascinating article. I was never really aware of the psychological methods that companies use to try to get us to buy from them, so this was a real eye opener for me. I’m not I’ll ever see ecommerce shops the same way again to be honest.

  12. Joe Tannorella :

    Some excellent examples here. I’ve added them all (and a few more related ones) to a collection on UIDB here so that they’re easier to browse through: http://uidb.io/JoeTannorella/collections/quicksprout-follow-up-psychological-insights-for-designing-pricing-pages

    All of the examples in the collection that I created above were screenshot today, and thus are nice and fresh. I noticed that some of the above examples were based off of old screenshots and no longer live…

    For example, at the start of point 6 you say “Dropbox employs this technique”… the example shown isn’t taken from Dropbox – it’s taken from TalkerApp (which has now shut down).

    On a side note, I have a proposition for you (or anyone else who wants to take me up on it). Next time you write an article, or are simply looking for design/UI inspiration, let me know and I’ll scour the web looking for examples for you (for free). I’ll add them to UIDB.io as a custom collection and send you a link (yes, for free).

    Cheers,
    Joe Tannorella

    • Thanks for that offer Joe

      Glad this posts has been helpful. Let me know if you have any questions with implementation or are confused about anything

  13. Tiffany Simpson :

    Great article. Great examples. Thanks Neil!

  14. What a nice post, Neil. Thank you so much! How about pages that try to sell, but not directly? Something such as a web design service for example, that shows no prices. What’s your opinion on that and how should you optizime it for “sales”? Would be nice to see such a post coming!

    • Yeah, you can start with creating a page that has a unique piece of value and give it for free to attract leads

  15. How do we optimise service to be rendered to clients in price.

    Thanks for the post

  16. Customer Psychology is very important. The better you know your audience the better you converts. I personally use the colors guide as a secret layer of awesomeness in my funnels.

    Although, the casino example is awesome. It clearly suggests its all about entertainment, while its all about money. The next example of showing menus, price charts with less reference to money is also brilliant.

    • Being able to understand the psychology of the person on your site can help you in more ways than you can imagine. And that brings me back to ABT…Always Be Testing 🙂

  17. I love all of these ideas. Thanks for the reminder about the “yes-ladder” concept where you try and get the smaller “yeses” first and up sell the product/service later.

    I’m trying this out for a client who does indoor plant hire for businesses. We’re going to see if we can get more conversions by offering a free 30 day trial of the plant hire service, so clients can see/experience/touch the plants in their office environment before they commit to the paid ongoing service.

    Hopefully it works! Keep the great ideas coming…

  18. Thanks Neil, I recognise some of these from Dave Booth’s presentation at the Google Masterclass as well. Great stuff!

  19. hi Neil Thank you for sharing these Ideas, I know customer psychology do matter when it comes to design a price page. I always enjoy your writing style and suggestions.

  20. Great Stuff Neil. Marketers also use another principle called Decoy wherein you give consumers second option to buy in order to make the first option irresistible.

  21. Jenjer Johnson :

    I love you Neil Patel! Your mind is so sexy and you teach me so much. How did you know I needed to learn this topic? I’m finishing up web design and was stuck on this! Thank u!

  22. It’s definetely bad when an upsell turns into a bait and switch scam and sometimes the line between both is really thin, especially when the offer is loaded with requisites or “fine print”. So I’d add to keep the offer simple and segmented to a particular audience to the audience itself define the requirements rather than half a page of fine print.

    I really liked the devaluing money idea by omitting or reducing the dollar sign size. Finally, the “smaller yes”, I remember reading a copywriter stating “you want people keep saying yes as they read the copy.” Agreement is critical.

    • Yeah that’s just a shady business practice, so keeping the offer simple and segmented would be a great course of action.

      Such a subtle little change can make such a difference on the way people perceive the value of your product

  23. Insanely wonderful information. These powerful strategies can work great for almost any business. Indeed its a Fantastic piece of info, learned a lot.

    Thanks Neil.

  24. You’re teaching the Digital Marketing and Online Business to the masses Neil. Thank you so much your another great article. Keep on sharing. Love you 🙂

  25. Insanely wonderful information. These powerful strategies can work great for almost any business. Indeed its a Fantastic piece of info, learned a lot.

  26. Thank you Neil you. i was search on google about how to design pricing page.just found you from my inbox. and it is helpful strategy that help to build user friendly pricing page.

  27. Great insight on psychological impacts. It’s an eye opener!

  28. Happy Diwali Wallpaper :

    You are great marketer Neil Amazing Buddy

  29. Smaller dollar sign .. Smaller Yeses… Buy it now before it runs out.. and you will be sad to be left without it… brilliant…

  30. Farcas Gelu Danut :

    Simple techniques but with a major impact. Thanks, and I ‘ll use this information.

  31. Psychology really helps make us conscious of unconscious issues our websites have. It’s a great article outlining how psychology can be applied. It’s my favourite area of all digital!

    Thanks for sharing Neil!

    Tim

  32. Joyetech eGo AIO :

    For example, at the start of point 6 you say “Dropbox employs this technique”… the example shown isn’t taken from Dropbox – it’s taken from TalkerApp (which has now shut down). yess

  33. Really, really, good post. I’ve always liked psycomarketing but the way you explained everything is really cool and easy to understand.

    Tank you very much for sharing Neil.

  34. Hey Neil ,

    You nailed it 🙂 im going to try tweaking my page and let update how it worked.

    Cheers

  35. Rey Joshua Gaona :

    Hey Neil,

    This this is a great article about the psychological pricing. I am a social media strategist, and I’m going to try to apply some of the principles described within this article.

    Feel free to take a look at my website at: www.socialmedist.com

    Cheers

  36. Perception’s BIG DEAL these days. Your website design matters to influence visitors landing on your web page for the 1st time. I like the way you defocused price and focused on value.
    Its cool sometimes to appear telling the customer to forget money and see the great value behind your products and services.

    • Right. The important thing is to allow the customer to see the value in your product or service and just by tweaking the size of the dollar sign they will be much more likely to see it without associating a dollar amount

  37. I’m using my art to comment on what I see. You don’t have to agree with it.

  38. I am so grateful to read this such an amazing post. This was such a really great post and impressed with this site.

  39. Hi Neil,

    Thanks for truly interesting article and read. Will definitely apply few strategies to my own website. Helpful and engaging content to read.

    Kind regards
    George

  40. Hi Neil,
    First of all thanks for your excellent writing.I am always looking for your new post.I have a website that offers various kinds of designs related service like HTML5, Banner design, Gif , extra and extra. But I’m confused about my price page. Your post really helps me. Thanks!!

  41. Joyetech e Sigara :

    Hello, Porfect Thanks for truly interesting article and read.

  42. I use wordpress and wanted to build a pricing table page, what do you feel is the best plug-in that would allow me to build in these best practices. There are hundreds of plug-ins for pricing, so the community’s guidance would be great rather than re-inventing the wheel. Would be good if you could link me to a page that was built with a specific tool, so I can see the end result! Many Thanks in advance!

    • If you just need a plugin then I’m sure there are plenty. But I would sway towards a theme (optimisepress,thrivethemes, genesis) that had that ready if it wasn’t custom made.

  43. Thanks for the Great info………….

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