5 Pro Tips on How to Design a Pricing Page

As a SaaS company, you’re competing to give unique solutions to your customers through your products and services. And your pricing page should reflect that.

It’s great to look at other businesses in your industry for reference when designing a pricing page. However, simply copying and pasting your competitors’ actions will negatively impact your product and customers. You’ll be following the competition instead of communicating why your business does things differently.

Why should you focus on creating a great pricing page?

Many SaaS companies consider pricing pages to be the most overlooked element in driving growth. While most companies spend a lot of their time on customer acquisition, pricing affects the bottom line almost four times over. Paddle revealed that when companies improve their pricing page by 1%, the result leads to a 12% monetization impact on the bottom line compared to the 3.32% bottom-line impact of acquisition.

One of the best ways to improve conversions is to focus on developing a value-based product pricing strategy. Value-based pricing establishes a product or service’s price based on customers’ opinions on how much they think it is worth.

These five keys to pricing pages will help you communicate value effectively and motivate your customers to take immediate action.

1. Tailor your pricing page to your product value

For an effective value-based pricing strategy, spend time determining your product’s actual price value and communicate it to your customers as soon as they land on your page.

The average company spends less than one business day working on their pricing. Instead, collect essential data and survey customers about the services that matter most. This will ensure your products resonate with every demographic and offer unique pricing tiers for various customers.

Ideally, you should reevaluate your pricing strategy at least annually on a continual basis. Make sure that all major departments in your business also weigh in.

Once you have a good idea of what your customers will respond to, pick a tone for communicating your product that suits them. For example, avoid using highly technical language if your buyers aren’t experts, but do use technical language if they are.

Allow customers to find out the most suitable product for them. A great way to do this is by using single-word labels that show various options for customers (such as startup vs. bootstrapper or growing business vs. unicorn startups). Price every option based on the group’s price tolerance. Lastly, highlight key features of every plan so customers know what they’re getting.

2. Keep it simple

Customers who land on your pricing page are usually funneled through other, more narrative-centered pages on your site. By the time they reach your pricing page, they’ll be looking for clear comparison points that will help them decide. It can be challenging to find the right balance that leaves them educated but not distracted.

Here are three aspects you should aim for when designing a pricing strategy on your pricing page:

1. Positioning that aligns with your target customers.
2. Plans with a mix of features based on your customer’s needs.
3. Price points that represent value and what your customers are paying for.

Finally, avoid cluttering your page with too many options and information. Instead, provide a clear breakdown of the product cost and why it is worth your customer’s money (include information like product comparisons).

3. Convert your currencies

Customers are more likely to purchase when they see a product priced in their local currency. However, currency isn’t the only adjustment you should make, as adjusting the price based on how its value may change in different markets is also crucial. For example, a company may adjust its product price depending on the buyer’s country of origin.

Pricing localization boosts growth across customer groups as it helps follow the local culture and, therefore, helps you connect better with each group. In fact, of the over 50 SaaS companies surveyed by CXL, those that focused on localization showed faster growth compared to those that didn’t. Here are two ways to localize your prices:

• Cosmetic localization – Change the price or currency based on exchange rates and your site’s display language.
• Market-based localization – Adjust your package pricing based on buyer personas and local market saturation. 

Cosmetic localization consists of adjusting your site’s currency, changing some web design elements, and changing your payment process to be more compatible with each region’s best practices.

Market-based localization may include elements of cosmetic localization; it also consists of researching the demand for similar products in your region. You can do this with a third-party research team.

Businesses with true localization can improve their month-over-month growth by 11%, compared to only 9% for those with cosmetic localization. Also, companies with multi-regional localization have nearly doubled their growth compared to those without localization.

4. Use psychology 

Beyond the clear details of your product and its prices, customers will respond positively to a page that is designed with customer psychology in mind.

Use design elements and wordings that tell your customers they need (not only want) your product. For example, a month of our product will save them 500 hours of work, while a year of our product will save them over 5000 hours.

Below are two ways to do it:

1. Anchoring – Highlight your best (but mid-priced) plan on the page to draw your visitors’ eyes so they’ll have a favorable opinion of that plan compared with the others. 
2. Psychological pricing – Take examples from your local grocery or department store and decrease your product’s price by a few cents ($2.99 vs. $3.00).

5. Create a sense of urgency 

When customers agree to purchase your product or service, they’ll want a clear path to the next step. Make sure that you have an actionable call to action (CTA) button. Avoid the classic “Submit” button; instead, communicate clearly what happens after they click your “Buy now” button. Phrases like “Download the latest report” or “Add to cart” tend to do better than their generic alternatives (But you should still do a test run).

Your CTA should reinforce to customers the value they’ll receive from your product. For example, “Start Saving Time Now” or “Increase Customer Satisfaction Today!” A CTA may seem like a small detail, but it does much heavy lifting for your company. According to Unbounce, changing a CTA by one effective word can boost your conversion rate by up to 40%. 

Here are a few effective ways to design CTA that will grab your customer’s attention:

• Don’t make your visitors scroll for it; keep your CTA at the top half of your site. 
• Use bright or high-contrast buttons, and choose an accent color that fits well with your brand.
• A/B tests various languages for your CTAs on pricing pages to determine which wording customers tend to respond to. 

Wrapping it up

It takes hard work to build and grow a SaaS business. Your pricing page should show customers the true value of your products and the resources and vision that went into creating them.

By investing your time and effort in a value-based pricing strategy and focusing on presenting it to your customers in a way that resonates with them, they will convert and feel as excited about your product as you are.