Fundamentally, e-commerce is a CONVERSION business. For example, out of 1,000 users visiting your site, how many of them will end up placing an order, subscribing to your service, or signing-up to your offering?
Let's start with filling in the blank:
Fundamentally, e-commerce is a CONVERSION business.
For example, out of 1,000 users visiting your site, how many of them will end up placing an order, subscribing to your service, or signing-up to your offering?
We have previously shared a couple of conversion optimization tips but what really matters?
SIMPLICITY - don't make your customers confused, especially when you are offering non-necessities ("nice-to-have" kind of products).
No doubt, Apple thrives in this aspect - the boldness and simplicity in its marketing message, product specification and pricing.
For example, Apple iPad pricing is plain straight-forward, differentiated by storage size - 16GB / 32GB / 64GB / 128GB.
Storage size is probably the first thing that most customers care when buying a tablet, not the processor speed or anything too technical.
We see similar approach with Netflix's subscription pricing:
It is just like "eat-all-you-can" buffet, watch unlimited TV shows and movies for $7.99 per month (2 screens) - simple.
On another hand, see for yourself The New York Times subscription package below:
How long does it take to understand the above?
First, you have to choose an option between device access, followed by calculating how much you need to pay for, say a one-year subscription.
Imagine if you are offering non-necessities with NYT's complexity, how would you suffer in the conversion rates?
So now, do you want to revisit your marketing message, product pages and pricing structure?
Keep it simple, easy to understand and don't confuse your customers.
e-commerce (or any web business) is a ________________ business.What's your answer?
Fundamentally, e-commerce is a CONVERSION business.
For example, out of 1,000 users visiting your site, how many of them will end up placing an order, subscribing to your service, or signing-up to your offering?
We have previously shared a couple of conversion optimization tips but what really matters?
SIMPLICITY - don't make your customers confused, especially when you are offering non-necessities ("nice-to-have" kind of products).
No doubt, Apple thrives in this aspect - the boldness and simplicity in its marketing message, product specification and pricing.
For example, Apple iPad pricing is plain straight-forward, differentiated by storage size - 16GB / 32GB / 64GB / 128GB.
Storage size is probably the first thing that most customers care when buying a tablet, not the processor speed or anything too technical.
It is just like "eat-all-you-can" buffet, watch unlimited TV shows and movies for $7.99 per month (2 screens) - simple.
On another hand, see for yourself The New York Times subscription package below:
How long does it take to understand the above?
First, you have to choose an option between device access, followed by calculating how much you need to pay for, say a one-year subscription.
Imagine if you are offering non-necessities with NYT's complexity, how would you suffer in the conversion rates?
So now, do you want to revisit your marketing message, product pages and pricing structure?
Keep it simple, easy to understand and don't confuse your customers.
Original idea of this article is credited to Daring Fireball: pricing should be simple and Mr Jamie: 7 start-up lessons.
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