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
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
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