Using Retargeting to Enhance Your Value Perception
The pricing page is one of your products most important selling points. People interested in your product will look at it. However, if your value isnt proposed or perceived well from your pricing page, youre likely to lose potential customers. Fortunately, ad retargeting is an invaluable tool and can help any SaaS brand convey its value messaging.
What Is Value Pricing?
Traditionally, product prices are based on usage costs plus an added profit margin. Value-based pricing moves your pricing strategy away from usage costs and toward the value that your end consumer actually receives from your product. The idea is that your product should be priced to reflect its perceived value.
If your main competitors are offering similar products at a similar price, building your value perception and emphasizing your core competencies can give you a competitive edge. While doing so may sound simple, challenges often arise when it comes to actually conveying your value and capturing sales.
What Is Retargeting?
Retargeting allows you to continue marketing to your audience after they leave your website. Traditionally, this tool has been very useful toward helping e-commerce sites increase their sales by encouraging people to return to the site and make a purchase. Yes, there are a lot of tools and elements that can help you sell your SaaS product, but while layout and design elements come and go with the season, retargeting can complement your value strategy throughout your products life cycle.
How Can Retargeting Help My Pricing Strategy?
Retargeting takes a three-pronged approach to supporting your pricing strategy. While the general nature of retargeting can reduce shopping cart abandonment, its also a great way to support your messaging, and can be used to bring less generic and more specific ads to your audience.
Market Segmentation Your SaaS product is probably tiered with a few different pricing plans from within the pricing page, and each plan targets a specific market. With retargeting, you can step away from the generic, and target specific ads to the appropriate audiences, making them more relevant and attractive. You can also offer specific types of discounts to each of your separate audiences.
For example, KISSinsights is a SaaS modeled product that lets people use a keen survey widget to facilitate the customer feedback process. Having multiple price points, KISSinsights retargets users through different funnels, allowing them to focus on optimizing each funnel accordingly.
Value Messaging Your value messaging conveys your brands value perception to your audience. Retargeting is a great way to reinforce your messaging specifically to your audience. Coupled with market segmentation, your audience will feel more comfortable with your brand and pricing, and therefore will be more likely to convert. Additionally, if youre a small or new company with a premium SaaS product, retargeting can increase your products perceived value by allowing you to advertise on premium sites such as Yahoo! and YouTube at a very low cost.
Zendesk is a SaaS help desk that utilized retargeting as a tool to help convey their value messaging. Their customer support software used retargeting to reinforce its brands value perception, resulting in a 1317% ROI from retargeting during the month of September.
Reduce Abandonment Abandonment is an issue that affects anyone who sells products online. An effective way to reduce the number of lost leads is by retargeting your abandoners back to an optimized landing page with a simple pricing overview and sign up button or a lead-gen form. Additionally, the direct contact info gathered from your landing page can be used to learn more about the abandoners hesitations regarding signing up.
In Zendesks case, users get retargeted back to a pricing page, providing users enough information to easily continue toward converting on the product. For KISSinsights, users get redirected back to the products homepage, which is optimized for conversions.
As the software environment shifts from local to cloud, startups and enterprises alike have put much thought into the pricing strategies of their SaaS products. Finding your products value pricing — where its value proposition meets its value perception — is a great way to build a strategy around pricing your different product bundles. The folks over at Sixteen Ventures provide awesome services and workshops based around value pricing as a strategy for SaaS products. When it comes time to emphasize your value, retargeting is a great way to help augment your products value.