Learn how to increase customer conversions by implementing a progressive pricing strategy.
Progressive pricing is a great way to increase customer conversions. It involves offering a lower price for the initial purchase, which makes it more appealing for users to complete the purchase. This strategy was implemented by Soapbox, who changed their smallest payment plan to $5/month for the first 5 users. Within the same month of implementing the new payment plan, they saw customer conversions increase 4x higher than the monthly average. When users see the ROI and gain value from the product on their initial payment plan, they’re more likely to upgrade. However, it’s important to bear in mind that your starting deal size will go down. You have to aim to increase the volume of purchases of that initial product, and help users continue to upgrade once they’ve seen the value your product can provide.