Mark Wickersham (UK):
The Value Pricing System
https://www.wickersham.co.uk/a/6541/wWVxKzFL
Making the middle option top choice
I often talk about menu pricing and the
power of three. It’s truly powerful stuff.
It’s the fact that when faced
with three options people tend to
gravitate towards the middle option.
And it works with pricing too.
So you might only currently offer one
package – your tax return package for
example.
By adding more services and
creating two other packages you will
find that many will choose to pay you
more by going for the middle, and
therefore more expensive, option rather
than your basic package.
But how do we get them to do that?
There are things you can do to prompt
your customers to pick that middle
option but essentially it boils down to
one thing.
Social proof.
It’s something
we learn from Dr Robert Cialdini,
author of Influence: Science and
Practice.
Social proof is one of the
six main laws of influence. It is
defined as follows: “As humans we are
lazy when it comes to decision making.
When it comes to making decisions we
often look around at everybody else and
follow the crowd.”
This is evident by people’s use of
Amazon – or any site that has customer
reviews.
Customers can see what their
peers have bought and what they
recommend and will often make their
purchasing decisions based upon that.
It’s the safe option and it makes
social proof really, really powerful.
To be continued…
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