June 25, 2020

FFR051 - Price Testing With A Last-Minute Discount

FFR051 - Price Testing With A Last-Minute Discount

Today I’m going to talk about a little trick I learned in Dan Siroker and Pete Koomens book, “A/B Testing” regarding testing price to maximize revenue. They call it the "Last-Minute Discount".   Split testing price is super important as...


  • Today I’m going to talk about a little trick I learned in Dan Siroker and Pete Koomens book, “A/B Testing” regarding testing price to maximize revenue. They call it the "Last-Minute Discount".

 

  • Split testing price is super important as otherwise you are just guessing what is the ideal price. Obviously a lower price would usually lead to more sales, and a higher price results in more profit. So the trick is in finding the sweet spot that provides the most revenue. 

 

  • Sometimes it makes more sense to charge a higher price and get less conversions... because those sales end up producing more overall revenue. 

 

  • But you would know that unless you tested it. 

 

  • Set up different pages with different pricing but then offer the same “lower price” on the actual order form and make it look like they get a special “today only price”. 

 

  • This avoids the possibility of some customers getting angry if they happen to discover your other page with a lower price somehow, which can happen. 

 

  • In ClickFunnels you would set up two separate sales pages on separate funnel steps... with different pricing which would then lead to a specific order form, and if they purchase you could then assume it was a conversion for the price shown on the initial sales page. 

 

  • To drive traffic you would need to use a landing page rotator to split the traffic. 

 

  • linksplit.io is free and does a great job of splitting the traffic to both URL’s.