When a business model moves around the several subscriptions which you have to pay for time to time, then at that time the most difficult thing is to make revenue through making users sign up. That’s the time when subscription plans pitch in. this is the stage when you have to manage the pricing plans.
This article will guide you about the techniques for the creation and test of price plan for web related subscriptions and applications.
An interesting thing I got to know in the journey of web development is that it is evolving towards the economy which based on subscriptions. So, design a perfect pricing plan for visitors as it is the important thing now.
Test price plan
It is very important for you to test the work done and collect the data for design and improvement on the certain kind of product. Test ought to be the first preference in the creating process of web based applications or services. This is because the improvement could be made on any time.
In the design context of price plan, it is important to keep check to know if it works alright for the targeted user’s base and for the surety that it creates your company the highest profits.
The question is that how will you test the productivity of a price plan? One can utilize a/b test to know difference in the numeric sign up when a person changes a specific aspect of a price plan. The optimizers of the Google site is free of cost and famous tool in regards to a/b test. Also, that is what people use at most of the companies to test price plans. You can test many things in this kind of scenario.
Now the question is that what will be the effectiveness if we increase or decrease the price of software?
We need caution here, as variability of price for similar products could get one into warm water. As in amazon.com when they decided to test price in 2001.
The valid test pricing idea like, if price is increased and it lead to more sign up or price increases more or has no effectiveness on profits.
There are ways in which one can evolve great price plan which will help you users make a choice of a good plan. One idea once tested was to get a low range plan which would result more visitors to buy most expensive subscription plans. The idea had been motivated by psychology professor that mostly people are not aware what they need until or unless they view it in context. When a person sees different option, he or she will start to complain each other. The hypothesis test is that persons make choice of things related to their closer option. Let’s say there is a silver gold and diamond plan which are of 49$, 69$, 79$ respectively. If 69$ idea which is gold plan works out, then it leads to the diamond plan. But people firstly buy the 49$ plan and if it works out, then they proceed further.
Tips and tricks
The article describes the paid plans. Now this will tell about the free plan along with the previous plans. The free plan purpose is to increase the number of visitors. The theory will be that a company starts and their wants are not like the large companies. They have limited budget. The free price plan will decrease the risk of trying and using the software. It reduces an obstacle of use which is for the company starting out and for those who would love to test the software without money commitments. After this, as the company will grow and their wants increase, they would like to buy the gold or diamond plan of yours.
How would you differ between free and paid ones? A plan which is effective will let the users to utilize majorly. For example, the famous file syncing tool provides you all features of the paid ones plan. You can also reduce the visibility of your free plan. This will also help in users to purchase the last two plans.