Price testing is one of the most crucial tests to perform when analyzing your response rate. Price too high and it will scare your customers away; price too low and you don’t make a profit.
Often it can be tricky. What you think might be an accurate price point can be way off, and you could be losing sales daily just by not altering the price by even a small amount.
Recently two price points were tested for a website that provided a searchable database of 211 million names.
Test: The two price points tested were $29 and $34.95.
Take a moment to guess which price point generated more profits.
Results: If you guessed $29, you’re right! Pricing the service at this amount generated a .44% conversion rate, compared to the .36% conversion rate of the $34.95 price point. This equals a 22.2% increase.
Profit over time
Because of additional sales (upsells and cross-sells) made to existing customers, the higher conversion rate proved to be significantly more profitable over time, despite the lower price point.
If you would like more tips on how to increase your response, please contact me at (310) 212-5727 or at firstname.lastname@example.org.