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A/B Test Idea: Allow customers to pay in instalments

ab test idea pay in instalments

Subscriptions work well for many reasons. One is that offering people the option to pay in instalments will subconsciously make them feel as though they are getting a better deal even though it is the same price overall.

I’ve been using a tool called Notion for a while as a central hub for my small business. After using it for a while, I really liked the product and I wanted to use it more so I signed up to the paid plan. The paid plan is not overly expensive at $10 per month, but I decide to pay for the year in advance for $96. I’m pretty sure I was given the option to pay monthly and I’m already paying for other services like Spotify and Netflix on a month-to-month basis so why did I choose to pay for the year in advance?

Subscriptions are commonplace in terms of how we pay for digital services and products. It’s more so the psychological factor of how we perceive the amounts of paying for a lumpsum vs in smaller amounts even though, it amounts to the same

Why we think this is a Good A/B Test:

Giving customers the chance to pay monthly instead of in one annual lump sum not only makes it more financially viable but also makes them feel as though they are paying a smaller amount as it is the instalment amount which carries the most weight in our perception of the price.