[Emerging Trend] Just Add Another Pricing Plan
I recently spoke with our research team at DoWhatWorks, and they shared a fascinating new trend they have uncovered. You have probably all seen a brand have a separate or de-emphasized pricing plan option below the regular plan cards. I have seen these alternative plans from dozens of SaaS, from Zoom to Shopify to Vidyard. Yet when brands A/B test these de-emphasized plans as separate plans, they nearly always test out of them. I included an image of an A/B test from Zoom where they test into just including the basic/free plan as part of the regular set of plans… I included another test from Typeform where they tested out of a de-emphasized enterprise plan, adding back in their enterprise plan to the main plan menu after testing it as a separate section… Back when I worked at Bonjoro, we tested out of having a separate Agency plan for our testimonial product, and we re-added that plan to the main plan cards after we saw a 5-6% drop in Agency plan selection with the de-emphasized option. It’s hard from the data to find a perfect number of pricing plans (although ElevenLabs going with 7 plans might be pushing it).... But the data does seem to show that when brands test having a separate, de-emphasized plan outside of the regular plan cards, they test out of it at a high rate. I share more depth on this and other issues of pricing on my Substack.