Happy Price Testing
Getting to the Holy Grail of Marketing




Rachit Dayal
Lead Consultant, Happy Marketer
rachit@happyma...
How much can you charge for your product?




The optimal price is the holy grail of
trading / sales / marketing / busines...
What’s the impact of price on profit?




   Google Analytics Master Class 2010   3
Current Methods of Price Testing

  Strategic “Guessing”
      Not based in fact, mostly guesswork


  Customer Surveys...
The Story of Genopal

72 hrs to Launch of New Product
•  Weren’t sure how much to price
      US$24.95 ?
      US$29.95 ...
Vary only one thing – the price


  Buy It Now. Only $24.95



  Buy It Now. Only $29.95



  Buy It Now. Only $39.95




...
The Price Testing Results …

             Items Sold                                   Revenue
                           ...
A Subsequent Marketing Test Told Us …




   Google Analytics Master Class 2010   8
Summary of Testing Results




•    Home Page Headline
        Best Headline led to performed 42% better than the origina...
Summary – How To Price Test

1.  The Process
                                                                Buy It Now. O...
Lessons about Getting Good Data

1.  Be Patient, confidence
    in results take time
    (wait for green bars)
           ...
Thank You!
http://www.HappyMarketer.com/
Rachit@HappyMarketer.com
http://twitter.com/rachitdayal




                     ...
Upcoming SlideShare
Loading in...5
×

Gamc2010 09 - price testing holy grail of marketing - rachit dayal - happy marketer

3,894

Published on

This material was presented at the Google Analytics Master Classes in Singapore and Kuala Lumpur on March 9 & 11 respectively. Rachit Dayal's talk covered strategies for variable price testing using GWO and the challenges of using GWO in Southeast Asia. Happy Marketer are a GAAC

Published in: Business, Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,894
On Slideshare
0
From Embeds
0
Number of Embeds
31
Actions
Shares
0
Downloads
95
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Gamc2010 09 - price testing holy grail of marketing - rachit dayal - happy marketer

  1. 1. Happy Price Testing Getting to the Holy Grail of Marketing Rachit Dayal Lead Consultant, Happy Marketer rachit@happymarketer.com http://twitter.com/rachitdayal Google Confidential and Proprietary 1
  2. 2. How much can you charge for your product? The optimal price is the holy grail of trading / sales / marketing / business Even prehistoric man wondered how many pails of grain he could get for that goat he was trading away! Google Analytics Master Class 2010 2
  3. 3. What’s the impact of price on profit? Google Analytics Master Class 2010 3
  4. 4. Current Methods of Price Testing   Strategic “Guessing”   Not based in fact, mostly guesswork   Customer Surveys   Honestly’s a problem – they do different from what they say   In-Store Tests   Very expensive, could lead to backlash   Online Price Testing   Affordable, quick to implement   Accurate data compared to other mediums Google Analytics Master Class 2010 4
  5. 5. The Story of Genopal 72 hrs to Launch of New Product •  Weren’t sure how much to price   US$24.95 ?   US$29.95 ?   US$39.95 ? 1. Home Page 2. Buy Page 3. Checkout Where all users start out Where all come to read Beginning of the Shopping and explore the site about pricing details Cart & Confirmation Process Google Analytics Master Class 2010 5
  6. 6. Vary only one thing – the price Buy It Now. Only $24.95 Buy It Now. Only $29.95 Buy It Now. Only $39.95 Google Analytics Master Class 2010 6
  7. 7. The Price Testing Results … Items Sold Revenue 100% 100% 100% 100% 50% 60% 0% 5% 0% 8% 2X Sales at $24.95 and 66% more revenue Google Analytics Master Class 2010 7
  8. 8. A Subsequent Marketing Test Told Us … Google Analytics Master Class 2010 8
  9. 9. Summary of Testing Results •  Home Page Headline   Best Headline led to performed 42% better than the original headline •  Home Page Image   Best Image led to performed 27% better than the original image •  Overall Results   Conversion Rate went up from 2.6% to 3.8% (32% boost)   Price changed from 29.95 to 24.95 (led to 2X more sales) Google Analytics Master Class 2010 9
  10. 10. Summary – How To Price Test 1.  The Process Buy It Now. Only $24.95   Relied on Online Testing & Google Website Optimizer – faster than offline Buy It Now. Only $29.95   Show the price in very few places   Vary only the price –keep as many other Buy It Now. Only $39.95 things constant as possible 2.  The Result   The data was probably not statistically  significant – too little time   Provided some preliminary market intelligence about price   Gave us a good idea about what headlines and images appealed Google Analytics Master Class 2010 10
  11. 11. Lessons about Getting Good Data 1.  Be Patient, confidence in results take time (wait for green bars)   2.  Start with the most High Traffic Pages (home Home Page Call To page, ad landing pages) Message Action 3.  Focus on big things that Price could really make a Page Format difference Google Analytics Master Class 2010 11
  12. 12. Thank You! http://www.HappyMarketer.com/ Rachit@HappyMarketer.com http://twitter.com/rachitdayal Google Confidential and Proprietary 12
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×