Offering a discount? Get more purchases by offering it as either a dollar amount or a percentage, according to whether the product costs more or less than $100.
According to one experiment, for products over $100, people perceived the value of a discount as greater when it was represented as a dollar amount versus a percentage. In fact, participants said they saw it as 7-12% more valuable and they were 11-16% more likely to buy. So here's a simple guideline to follow: If a product costs more than $100, represent the discount as the number of dollars saved; if it's under $100, show the percentage. It works because people rarely do the math, so when a product is $150, for example, $15 off seems greater than 10%. This is true regardless of currency. For those who have a range of products/prices and only want to represent discounts in one way, the dollar amount appears to be a safer bet. Of course, it's worth A/B testing.
We share a tiny, bite-sized tip for growing your business a few times a week. Click here to see more and get Growth Bites in your inbox 👌