gamc2010 09 - price testing holy grail of marketing - rachit dayal - happy marketer
DESCRIPTION
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 GAACTRANSCRIPT
Google Confidential and Proprietary 1
Happy Price Testing Getting to the Holy Grail of Marketing
Rachit Dayal Lead Consultant, Happy Marketer [email protected] http://twitter.com/rachitdayal
Google Analytics Master Class 2010 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
What’s the impact of price on profit?
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Google Analytics Master Class 2010
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
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Google Analytics Master Class 2010
The Story of Genopal
5
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 Where all users start out
and explore the site
2. Buy Page Where all come to read
about pricing details
3. Checkout Beginning of the Shopping
Cart & Confirmation Process
Google Analytics Master Class 2010
Vary only one thing – the price
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Buy It Now. Only $24.95
Buy It Now. Only $29.95
Buy It Now. Only $39.95
Google Analytics Master Class 2010
The Price Testing Results …
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0%
100% 100%
50%
5%
Items Sold
0%
100% 100%
60%
8%
Revenue
2X Sales at $24.95 and 66% more revenue
Google Analytics Master Class 2010
A Subsequent Marketing Test Told Us …
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Google Analytics Master Class 2010
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)
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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 market intelligence about price
Gave us a good idea about what headlines and images appealed
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Buy It Now. Only $24.95
Buy It Now. Only $29.95
Buy It Now. Only $39.95
Google Analytics Master Class 2010
Lessons about Getting Good Data
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1. Be Patient, confidence in results take time (wait for green bars)
2. Start with the most High Traffic Pages (home page, ad landing pages)
3. Focus on big things that could really make a difference
Page Format
Price
Home Page Message Call To
Action
Google Confidential and Proprietary
Thank You!
http://www.HappyMarketer.com/ [email protected] http://twitter.com/rachitdayal
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