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

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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......

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

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  • 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. 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. What’s the impact of price on profit? Google Analytics Master Class 2010 3
  • 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. 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. 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. 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. A Subsequent Marketing Test Told Us … Google Analytics Master Class 2010 8
  • 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. 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. 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. Thank You! http://www.HappyMarketer.com/ Rachit@HappyMarketer.com http://twitter.com/rachitdayal Google Confidential and Proprietary 12