What Is Anchoring and Why Does It Matter?
Anchoring is a cognitive bias where the first number or piece of information you see influences your perception of everything that follows. In marketing, anchoring typically means the first price you encounter sets your expectations, making subsequent prices feel cheaper or more expensive by comparison.
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How Anchoring Works in Marketing
Imagine you’re evaluating software subscriptions. The first price you see is £500 per month. Your brain immediately anchors to this number. When you scroll down and see another option at £250 per month, it suddenly feels like a great deal—even if £250 is still higher than you initially planned to spend.
This isn’t accidental. Marketers deliberately use anchoring to frame pricing and influence customer decisions. By strategically placing higher-priced options first, subsequent prices appear more attractive, increasing the likelihood of conversion. This tactic often leverages related psychological effects such as the decoy effect and price perception strategies.
Real-World Examples of Anchoring in Action
Anchoring is everywhere in marketing. Here are some common examples:
- Pricing pages: SaaS companies often list their most expensive plan first, anchoring your perception of value. Lower-priced plans then seem more affordable.
- Discounts and sales: Retailers show the original price crossed out next to the discounted price. The original price anchors your perception, making the discount feel more significant.
- Negotiations: Sales teams start negotiations with a high initial offer, anchoring expectations and making subsequent offers seem more reasonable.
How to Use Anchoring to Improve Your Growth Marketing Results
Anchoring isn’t just theory—it’s a practical tactic you can use immediately to optimise your marketing and growth strategy. Here are three actionable ways to leverage anchoring:
- Lead with premium pricing: Always present your highest-priced option first. This sets a high anchor, making your mid-tier and lower-priced options appear more attractive.
- Highlight original prices: Clearly display original prices alongside discounted prices to emphasise value and savings.
- Use comparative pricing: Show competitor pricing or industry averages to anchor your product as a better-value option.
Testing and Optimising Anchoring Strategies
Anchoring is powerful, but like any growth tactic, it needs testing and validation. To get the most from anchoring, you need a structured approach to experimentation and analysis.
Growth Method helps growth marketing teams systematically test anchoring strategies to find what works best for their audience. Here’s how:
- Ideation: Generate and categorise pricing experiments aligned with your growth goals, ensuring your anchoring strategies are based on solid hypotheses.
- Experimentation: Run structured pricing tests through clear stages—building, live, analysing, and complete—to quickly identify winning strategies.
- Analytics: Integrate with analytics platforms like Google Analytics, Amplitude, and MixPanel to measure the real impact of anchoring on your conversions and revenue.
- Reporting: Share clear, professional reports with stakeholders, demonstrating exactly how anchoring strategies contribute to growth.
“We are on-track to deliver a 43% increase in inbound leads this year. There is no doubt the adoption of Growth Method is the primary driver behind these results.” Laura Perrott, Colt Technology Services
Anchoring Is Not an Accident—It’s a Growth Opportunity
The first number your customers see isn’t random—it’s a strategic choice. Anchoring shapes perceptions, influences decisions, and drives growth. By understanding and leveraging anchoring, along with other psychological principles like loss aversion and the Hooked Model, you can optimise your pricing strategy, improve conversions, and deliver measurable results.
Growth Method is the only work management platform built specifically for growth marketers. We help companies implement a systematic approach to grow leads and revenue. Book a call today to see how Growth Method can help you leverage anchoring and other growth strategies effectively.