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Issue 033From interaction to transaction: measuring willingness to spend |
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In the UX, product design and research world, we dive deep into understanding user needs, preferences, and pain points. Often, these insights are gleaned through design testing.
In preparation for testing sessions, we meticulously craft questions about an interface's intuitiveness or the value proposition's clarity.
But, intriguingly, one topic often remains in the shadows: the question of a user's willingness to pay for what we're showing them.
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In this illuminating piece, Teresa Torres ventures into this regularly neglected territory, highlighting that the thorny issue of money is central to the customer experience story.
But how do you broach such a sensitive subject?
You might think the answer is straightforward: asking users point-blank, "How much would you pay for this?". However, this often leads to speculative, sometimes inaccurate responses.
Instead, Teresa advocates for a more immersive approach: having users get as close as possible to the experience of having to potentially commit to a purchase. This might sound audacious, but the insights gleaned can be pure gold.
A surefire method to gauge interest in your product is to offer the option to buy even before the product's official launch.
Theresa shares the Concierge Testing technique as a potential way to sell and manually deliver a solution before it's fully built.
The footwear retailer Zappos.com famously proved the business case for online shoe retail this way. In Uber's infancy, developers manually matched drivers with rides before the backend systems were in place to automate this critical part of their technology.
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"Anytime we ask anybody, ‘What would you do?’—whether it’s about pricing, behavior, or anything else— that response is garbage. Throw that answer away. It is completely unreliable."
Teresa Torres
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Designing and presenting more realistic buying scenarios offers genuine windows into a customer's value perception.
Drawing from her own experiences, Torres recalls moments when she had a fixed price anchored in her mind based on past clothing purchases - in this case, a pair of jeans. Yet, she was willing to stretch her budget (from $60 to $120) when convinced to try a product of demonstrably higher quality.
So, what's the lesson for UX and product design professionals?
Dive into the murky waters of conversion conversations to test monetary boundaries. In your next phase of UX research, dare to recreate those authentic purchase scenarios to gain a clearer picture of your product's perceived worth.
By understanding the intricate balance between product quality and price, we can deliver work that truly resonates and offers unmatched value.
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What are your preferred techniques for testing willingness to pay, and have you been surprised by the results?
Get in touch and I might share your stories and questions in a future newsletter.
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