A/B Test Idea: Breakdown the cost of your plans daily costs
We are all too aware of the impact it will have on our bank balance and we don’t want to leave ourselves short. When you present people with a price, they use that as an anchor to evaluate the value of a product or service.
It’s easy to see why. If someone says that a product is $100, we have an idea of how much we think it should cost. If we already have a low anchor for monthly costs, such a $100, then a $1,200 yearly cost seems much higher than if we had a high anchor.
Why we think this is a Good A/B Test:
The purpose of this experiment is change the perception of cost to see how it affects conversions. When you are selling a subscription product that costs $100/month, it can be more effective to not only show the monthly cost but also show the daily equivalent cost as well. The daily price is smaller and therefore people perceive it as cheaper and can backwards rationalize the value you’re offering.