Post on 09-Apr-2018
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
1/12
Google Confidential and Proprietary 1
Happy Price TestingGetting to the Holy Grail of Marketing
Rachit Dayal
Lead Consultant, Happy Marketerrachit@happymarketer.comhttp://twitter.com/rachitdayal
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
2/12
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!
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
3/12
Google Analytics Master Class 2010
Whats the impact of price on profit?
3
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
4/12
Google Analytics Master Class 2010
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
4
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
5/12
Google Analytics Master Class 2010
The Story of Genopal
5
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
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
6/12
Google Analytics Master Class 2010
Vary only one thing the price
6
Buy It Now. Only $24.95
Buy It Now. Only $29.95
Buy It Now. Only $39.95
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
7/12
Google Analytics Master Class 2010
The Price Testing Results
7
0%
100%100%
50%
5%
Items Sold
0%
100%100%
60%
8%
Revenue
2X Sales at $24.95and 66% more revenue
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
8/12
Google Analytics Master Class 2010
A Subsequent Marketing Test Told Us
8
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
9/12
Google Analytics Master Class 2010
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)
9
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
10/12
Google Analytics Master Class 2010
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
10
Buy It Now. Only $24.95
Buy It Now. Only $29.95
Buy It Now. Only $39.95
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
11/12
Google Analytics Master Class 2010
Lessons about Getting Good Data
11
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
8/7/2019 Gamc 2010 09 Price testing holy grail of marketing
12/12
Google Confidential and Proprietary
Thank You!
http://www.HappyMarketer.com/Rachit@HappyMarketer.comhttp://twitter.com/rachitdayal
12