Use different plans for price testing

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 09, 2021, 5:03 PM GMT+0

Price testing can help brands determine the ideal price for a product/service to attract prospect and increase revenue.

Instead of using the same product for A/B testing the price, businesses can choose two different product or plans within the same category to conduct price testing. This process can help determine the ideal price that customers are willing to pay for a specific product. 

It can also help companies avoid showing customers with varying prices of a single product and prevent potential brand damage. Businesses should further consider competitor pricing and operational costs to figure out the price points for price testing.

Lower-priced products can drive high conversion rates, but they may not help meet revenue goals. Thus, companies should measure revenue and not conversions to determine the ideal price point from their A/B tests. Businesses can also conduct surveys to assess effective product/service prices.

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