Impact Pricing

Why Flipping "Good, Better, Best" Can Increase Revenue by 10% with Michael Mansard


Listen Later

Michael Mansard, Principal Director of Subscription Strategy at Zuora, joins Mark Stiving to challenge one of pricing's most accepted conventions: the order of good, better, best.

In this episode, Michael shares original research showing how simply changing the display order to best, better, good can significantly increase purchase intent and revenue. Drawing on behavioral economics, loss aversion, and real-world testing, he explains why buyers react differently when the most expensive option is presented first.

Why You Have to Check Out This Episode:

  • Learn how reversing plan order increased top-tier selection by 15 points in controlled testing.
  • Understand how loss aversion works against you in traditional pricing pages and how to flip it.
  • Discover when best, better, good works and when it can hurt retention and Net Revenue Retention (NRR).

"By simply changing the order of plans, we increased revenue by nearly 11% without changing price or features."

– Michael Mansard

Topics Covered:

01:16 - Best, Better, Good vs. Plan Order. Why the order of pricing plans matters and how flipping it can change buyer decisions.

06:23 - The Compromise Effect in Decision-Making. Why buyers gravitate toward the middle option and how loss aversion shapes that behavior.

08:11 - How Plan Order Impacts Choice. What happens when the most expensive plan is shown first and why it reframes value.

11:39 - Pricing Strategy and Consumer Behavior. How buyers justify decisions emotionally versus rationally when evaluating plans.

15:10 - Rethinking Good, Better, Best. Why traditional pricing layouts may limit revenue and when best-first works better.

18:11 - Customer Satisfaction and Pricing Strategy. Risks to churn and net retention and why right-selling matters more than upselling.

22:53 - How to Test Monetization Strategies. Why A/B testing, qualitative feedback, and small-scale experiments are essential.

Key Takeaways:

"A very basic tweak, changing the order from good, better, best to best, better, good, can lead to significant revenue uplift." – Michael Mansard

"Best, better, good reframes the buying question from 'Is it worth paying more?' to 'Why wouldn't I choose the best?'" – Michael Mansard

"Loss aversion means the feeling of losing is much stronger than the feeling of gaining." – Michael Mansard

"Pricing pages should make trade-offs clearer, not more confusing." – Michael Mansard

People & Resources Mentioned:

  • INSEAD – Where the research originated through executive education
  • Loss Aversion Theory – Behavioral principle driving buyer choice
  • Goldilocks / Compromise Effect – Why buyers avoid extremes
  • Disney+, Wix, Apple – Examples of best-better-good pricing
  • SurveyMonkey – Example of plan order varying by segment

Connect with Michael Mansard:

  • LinkedIn: https://www.linkedin.com/in/michaelmansard/
  • Article: It's Time to Flip Good, Better, Best on Its Head (published on LinkedIn)

Connect with Mark Stiving:

...more
View all episodesView all episodes
Download on the App Store

Impact PricingBy Mark Stiving, Ph.D.

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

50 ratings


More shows like Impact Pricing

View all
Economist Podcasts by The Economist

Economist Podcasts

4,178 Listeners

Pivot by New York Magazine

Pivot

9,545 Listeners

Invest Like the Best with Patrick O'Shaughnessy by Colossus | Investing & Business Podcasts

Invest Like the Best with Patrick O'Shaughnessy

2,355 Listeners

The Daily by The New York Times

The Daily

112,401 Listeners

FT News Briefing by Financial Times

FT News Briefing

639 Listeners

Haaretz Podcast by Haaretz

Haaretz Podcast

297 Listeners

The Prof G Pod with Scott Galloway by Vox Media Podcast Network

The Prof G Pod with Scott Galloway

5,561 Listeners

Hard Fork by The New York Times

Hard Fork

5,522 Listeners

ReThinking by TED

ReThinking

639 Listeners

On with Kara Swisher by Vox Media

On with Kara Swisher

3,534 Listeners

What Now? with Trevor Noah by Trevor Noah

What Now? with Trevor Noah

4,264 Listeners

The Tucker Carlson Show by Tucker Carlson Network

The Tucker Carlson Show

16,970 Listeners

Prof G Markets by Vox Media Podcast Network

Prof G Markets

1,429 Listeners

Raging Moderates with Scott Galloway and Jessica Tarlov by Vox Media Podcast Network

Raging Moderates with Scott Galloway and Jessica Tarlov

1,356 Listeners