Price–Information Relationship in CRO
Usually, there’s a direct correlation between a product’s price and how much information users need to make a purchase. When the price is low, a user may need less information, whereas when the price is high, they need more.
Free products/features (no/low barrier) will probably require less information to convert compared to those that charge. When a product is free, with a low barrier of entry, users will try it out to see if it meets their needs. In contrast, if it’s expensive (relatively speaking), users need more convincing reasons.
The Information Balance
Oftentimes, landing pages overload the user with too much information or vice versa; they oversimplify and fail in presenting their unique solution to the user’s key needs.
In reality, users don’t read every piece of information you’ve provided — they only read what they need to complete their jobs to be done.
Overloading will result in criticals being missed or extra barriers being built. While oversimplification will lead to difficulty relating problem<>solution or failure in persuasion.
How to Find the Balance?
Your product changes constantly as well as your competitors. That’s why finding the sweet spot for each page is challenging and ever-evolving.
The rule we discussed is very true when you draw a simple pricing spectrum between you and your competitors. It’s often a wise place to start.
- Slack; $8.75/mo/user.
- Rocket Chat; $7/mo/user, minimum of 25 users.
- Google Chat (Included in Google Workspace); $6/mo/user.
- Microsoft Teams; $4/user (annually paid)
On their home pages, you can clearly see their information balance is very influenced by their pricing position on the pricing spectrum. The diagram provides a very clear picture of the consideration set and where to start your information-length experiments.