Pricing: Limiting Decision Fatigue

Published

Pricing and packaging is complicated. A common issue we see in companies is presenting customers with too many options. This is often seen as providing the customer with flexibility, but in reality it causes choice fatigue.  Too many choices can cause longer sales cycles and lower conversion rates than providing customers with fewer, simpler options.

This principle is important whether you are displaying packaging on your website or coaching your sales reps on how to present options to customers in an enterprise sales conversation.

Based on psychology research and our own experience working with SaaS companies, we have found that the ideal number of options to provide to customers is 3-4 curated choices. When it comes to packaging, there is rarely a one size fits all model.  

Insight and our network of trusted partners can help you make the right pricing and packaging decisions. If you have any questions, please contact pricing@insightpartners.com

  • Rachel Geller

    Rachel Geller, Managing Director

    Rachel Geller joined Insight in 2008. She helps lead investments in high growth software and internet companies, with a focus on application software and marketplaces.   Rachel works closely with multiple Insight portfolio companies.  Rachel began her career at Insight as part of Onsite, where she scaled and led the strategy and M&A team. Rachel…