Experimental startup platform, or why pricing matters a lot
“For the third year now, people at Boosta have been developing 3 SaaS products for marketers, SEO specialists, and business owners worldwide. If talking briefly about these products, they are as follows: Sitechecker – helps to measure and monitor the effectiveness of your site promotion in search engines; Copywritely – helps to write texts that will appeal to both people and search engines; Kparser – helps to collect search hints, ideas for content, tags for YouTube.
We conducted many experiments with tariff pages and made a lot of mistakes over these three years. In a series of articles, we will tell you what kind of errors these are and what types of experiments on the pricing page must be carried out in the first year of a startup. But first, let’s see what makes pricing so critical.”
Pricing is one of the most flexible and influential links in your business.
1. It is easy to change the pricing compared to other variables.
Product, positioning, traffic, team – changing any of these variables is an expensive and time-consuming process. Moreover, in some cases, it is impossible to conduct a pure experiment while introducing some changes to these variables and see the effect of the alterations.
For instance, Mailchimp, just like many other marketing services, initially developed a narrow specialization – a tool for email marketing. Recently, they decided to change their positioning to the Marketing Platform. It is essential to understand that the company will have to go to considerable lengths to make the users perceive them as a Marketing Platform. On the one hand, they need to retain those who are used to Mailchimp’s first positioning. On the other hand, the company needs to attract new customers who will prefer this Marketing Platform to other similar companies.
When it comes to pricing, it is much easier to conduct experiments and make changes. During the first stages, a marketer or product manager can launch experiments independently, without assistance from designers and developers.
2. It allows you to develop a large number of hypotheses for experiments.
Any product can be packaged, described, and presented in dozens of different ways. The tariff page is the packaging of your product.
3. It is one of the key pages on which a purchase decision is made.
Pricing is one of the first places where the user sees all the capabilities of a product. Exploring the product from the inside makes it difficult to capture all of the features and functions with one glance. As a rule, the product’s capabilities are spread out on different pages, screens, and buttons. The selling pages usually describe specific functions, offer solutions for the users; however, you rarely cover all the features of a product in one screen or table.
When a user can compare the available features of the tariffs, evaluate what features are available exclusively in the most expensive tariffs, it will be easier for them to understand what makes the product valuable and for which features he pays.
4. First off, the authors who make a selection of solutions for specific problems come to this page.
When your product hits the radars of customers, partners, and bloggers, this page captivates competitors’ attention. When bloggers create collections of solutions for the tasks of your audience or compare the best products in your niche, they rarely examine every product in detail. They mostly focus on the tariff page. By looking at the price lists of all competitors, you can get enough data for product analysis and see who offers more value for less money.