gamc 2010 09 price testing holy grail of marketing

8/7/2019 Gamc 2010 09 Price testing holy grail of marketing

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Google Confidential and Proprietary 1

Happy Price TestingGetting to the Holy Grail of Marketing

Rachit Dayal

Lead Consultant, Happy [email protected]://twitter.com/rachitdayal


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Google Analytics Master Class 2010 2

How much can you charge for your product?

The optimal price is the holy grail oftrading / sales / marketing / business

Even prehistoric man wondered how

many pails of grain he could get for thatgoat he was trading away!


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Google Analytics Master Class 2010

Whats the impact of price on profit?

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Current Methods of Price Testing

Strategic GuessingNot based in fact, mostly guesswork

Customer SurveysHonestlys a problem they do different from what they say

In-Store TestsVery expensive, could lead to backlash

Online Price Testing

Affordable, quick to implementAccurate data compared to other mediums

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The Story of Genopal

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72 hrs to Launch of New Product

Werent sure how much to priceUS$24.95 ?US$29.95 ?US$39.95 ?

1. Home Page

Where all users start outand explore the site

2. Buy Page

Where all come to readabout pricing details

3. Checkout

Beginning of the ShoppingCart & Confirmation Process


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Vary only one thing the price

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Buy It Now. Only $24.95




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The Price Testing Results

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0%

100%100%

50%

5%

Items Sold

0%

100%100%

60%

8%

Revenue

2X Sales at $24.95and 66% more revenue


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A Subsequent Marketing Test Told Us

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Summary of Testing Results

Home Page HeadlineBest Headline led to performed 42% betterthan the original headline

Home Page ImageBest Image led to performed 27% betterthan the original image

Overall ResultsConversion Rate went up from 2.6% to 3.8% (32% boost)Price changed from 29.95 to 24.95 (led to 2X more sales)

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Summary How To Price Test

1.The Process Relied on Online Testing & Google

Website Optimizer faster than offline

Show the price in very few places Vary only the price keep as many other

things constant as possible

2.The Result The data was probably not statistically

significant too little time

Provided some preliminary marketintelligence about price

Gave us a good idea about whatheadlines and images appealed

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Lessons about Getting Good Data

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1.Be Patient, confidencein results take time(wait for green bars)

2.Start with the most HighTraffic Pages (homepage, ad landing pages)

3.Focus on big things thatcould really make adifference

PageFormat

Price

Home PageMessage

Call To

Action


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Google Confidential and Proprietary

Thank You!

http://www.HappyMarketer.com/[email protected]://twitter.com/rachitdayal

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gamc 2010 09 price testing holy grail of marketing

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