Visitors see pricing and leave confused
More choices means more anxiety. Fewer tiers, higher conversion.
When to use
You have 4+ pricing tiers and see people clustering in low tiers or abandoning on the pricing page.
Hypothesis template
If we reduce from [X] pricing tiers to [Y], more people will buy because there's less to figure out.
Method
The problem: You have 5 pricing tiers because you wanted to give options.
But people land on your pricing page, get overwhelmed, and leave.
What Hotjar tested: Cut from 5 tiers to 3 (removed the two cheapest options).
What happened: Revenue went UP. Not down. Up. More people chose higher tiers
when they weren't anchored by cheap options.
Why this works:
- More options = more anxiety = more "I'll decide later" (which means never)
- Cheap options set low expectations
- Middle options look better when not surrounded by noise
How to try it:
- Look at which tiers people actually choose
- Find tiers that just anchor people low without adding revenue
- Test removing or consolidating them
- Watch conversion AND average revenue (not just conversion)
- Talk to users—some may genuinely need a cheap tier
Warning: Don't just remove cheap options without understanding why people
chose them.
Success metrics
- •Pricing page conversion
- •Average revenue per user
- •Which tier people choose
- •Time on pricing page
Prerequisites
- Pricing page with conversion tracking
- Enough traffic to test
- Understanding of why people choose each tier
Common pitfalls
- •Removing tiers users genuinely need
- •Not testing before full rollout
- •Only measuring conversion, not revenue
Source: Hotjar. Cutting tiers increased revenue.
Suggested ICE scores
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