Particularly if you have your prices visible on your website, having a decent value stack is critical for reducing the number of price objections and ultimately upping those conversions. But, what is a value stack and why is it so valuable for converting your website visitors? Let’s find out…
What is a value stack?
A value stack refers to a selection of price models or ‘packages’ that offer more value, the more expensive they get.
So for example, if you are looking to sign up to a streaming service like Netflix or Disney+, you can often opt for a more expensive monthly spend in exchange for additional people being able to use the account at once, on multiple devices.
Or some SEO experts in Melbourne might offer a tiered pricing system (Bronze, Silver, Gold, etc.), thus providing additional digital marketing services for those who invest a higher monthly commitment (e.g., Gold can include SEO and Social media marketing, etc.).
The key word in a value stack is ‘value’. If you wish to attract your customers to commit to spend their money with you, it needs to be abundantly clear that the more money they invest, the greater the value for their money they will get.
Why do value stacks help boost conversions?
It’s simple psychology really. If you are presented with three package options on a website, there’s a good chance that you will go with the middle package. With the cheapest package you know you will be getting the least value, even if it does still appear to be a pretty good deal (and nobody likes looking like they’re ‘cheap’ or ‘tight-fisted’). The middle of the road however, offers a pleasant middle ground where most consumers feel more comfortable.
Furthermore, if a customer is very interested in your services, has the budget to spend, and you have lots of social proof and positive reviews to support your authenticity, they may be far more likely to snatch up the most valuable package (e.g., the Gold).
If, however, website visitors reach a website and there is only one blanket price, it is far more likely that they will have ‘price objections’.
Giving your website visitors more options allows them to find a price that feels more comfortable for them.
The ironic thing is that, if you were to split test two websites: one with a value stack and one without, the likelihood is that those who happily signed up for the ‘middle package’ would turn their noses up at the same price listed by itself on the website without the value stack.
We’re simple creatures at heart.
Value stacking gives you an opportunity to upsell
Another great benefit to offering value stacks in your services is that you have a good opportunity to upsell your clients in the future.
Let’s say that a client opted for the basic package and is satisfied with the service after a few months; you can then go in and increase their monthly spend by offering the next stage in the value stack.
Final thoughts: Always lead with value
Perceived value is everything in marketing…but just make sure that if you do think about creating a value stack for your products and/or services, that you are actually providing your prospects with a much better deal when they do spend more money.
Far too often do you see companies offer a “value stack” where the value to the customer doesn’t actually increase as they spend more money, but stays the same (or indeed depreciates).
Always lead with genuine value.