61.5% Increase in Revenue from a Simple Pricing Presentation Change (Success Story)

Overview

Client: Supplements Brand (Anonymized for Privacy)
Split-Testing Platform: Optimizely
Site Type: E-commerce (Single-Product)
Test Approach: Variable Cluster A/B Split Test (1 Page)
Objectives: Increase in sales conversions and revenue per unique visitor

All confidential information has been redacted in order to protect our client's privacy.

Background

With the success of the previous two tests in increasing the conversion rate significantly for this client (see case studies for Test 1 and Test 2), we continued to try and improve the conversion rate of their website through our strategic testing approach.

For this 3rd test, we decided to test a change on the pricing and purchasing options page.

Control and Treatment

The control page and treatment page is presented next to each other below.

Control Page (Click to View Larger)
Control Page (Click to View Larger)

Treatment Page
Treatment Page (Click to View Larger)

We made 3 main changes to the pricing and purchasing options page, and these will be discussed in detail below:

Change in Copy for Headline and Buttons

We changed the copy for the headline into a call for action to continue guiding the customer towards the final goal of purchasing the supplement product.

Control Headline
Control Headline

Treatment Headline
Treatment Headline

Besides this, the call to action buttons were also updated to communicate more value to the customer and let them be absolutely sure of how many bottles of product they were purchasing. This reduced the potential friction that could have resulted from customers being unsure of exactly how many bottles of product they were purchasing because of the ongoing promotion that our client was having.

Control Call To Action Button
Control Call To Action Button

Treatment Call To Action Button (Click to View Larger)
Treatment Call To Action Button

Emphasizing the Middle Option and the Rearrangement of Prices

One major change that you can observe almost immediately upon comparing the control page and treatment page is that we also emphasized the middle option by making the graphic seemingly pop out. This is to continue guiding the potential customer towards a particular choice after he/she has read the headline. This again helps in reducing friction by outrightly offering them a recommended option.

Next, we also rearranged the pricing options. Previously, on the control page, they were arranged from the cheapest option to the most expensive option. However, on the treatment page, we decided to reverse this order to see if this would change the conversion rate.

No changes to the actual prices of the product or the offer was made for this test, all that was changed was the presentation of the pricing.

The theory behind this particular part of the test is a cognitive bias known as the price anchoring effect. It says that all of us tend to rely heavily on the first piece of information that we are presented with, using it as an "anchor". Presenting potential customers with the most expensive option first will in theory anchor the decision on the first (more expensive) option, and in comparison, the subsequent options would seem to be much cheaper, and generate higher sales.

Repositioning of Guarantees

Visitors are often concerned with the security and credibility of a website. Placing guarantees to reduce this form of anxiety is hence crucial in increasing conversion rates. It is important that these guarantees are placed exactly where anxiety is felt. This is the reason we moved the 100% Satisfaction Money-Back Guarantee logo right below the Add to Cart options where it is most visible when making the crucial decision of whether to click on the call-to-action button. This reinforces the guarantee that customers will get their money back in the event that they are unsatisfied with the product, and help reduce any potential anxiety.

Treatment Guarantee Logo
Treatment Guarantee Logo

Treatment Security Logo
Treatment Security Logo

We also added another anxiety reducer in the form of a security logo, as shown above. This helps to assure customers that the site is secure and their personal details will not be at risk.

Test Results

Increase in Revenue (Click to View Larger)
Increase in Revenue (Click to View Larger)

Increase in Sales (Click to View Larger)
Increase in Sales (Click to View Larger)

These 3 changes to just the pricing and purchasing options page managed to lead to a 61.5% increase in revenue by and 49.5% increase in sales, at a statistical confidence level of 95%.

Lessons Learnt

As we made several changes to the page at once, it's not possible to isolate one particular factor that contributed to the conversion rate increase in this case. It's the combination and presentation of the various factors that led to the conversion rate increase.

Here are some quick takeaways:

  1. Not much was changed on this page. Even minor changes to your website can result in a disproportionate increase in sales and revenue.
  2. Even though the change on the page was quite simple, the change in the mind of the prospect was significant. The aim of Conversion Optimization (and marketing) is not to trick or deceive your customers, but to reduce unsupervised thinking and help your customers make the right decisions for themselves by offering them value.
  3. The emphasis of a product level value proposition on a call-to-action button can provide additional clarity to the question "what happens or what do I get when I click this button?".
  4. Reinforce the guarantee policy or any other reassurances, especially near to the point of a critical conversion decision.

The Compound Returns of Continued Testing and CRO

Many people run a few A/B tests and then they stop testing after getting some results. Or some businesses hire a CRO practitioner and stop after they have achieved a certain improvement in their conversion rate. While there are diminishing returns from testing just one page (which you will likely not hit so soon), a continuous testing program on all parts of your sales funnel can have a significant and compound returns on your revenue and your profits.

With the exclusion of the first test (where we did not track revenue and sales, only click-through-rate), we calculated that we managed to help our client achieve a staggering 378.69% increase in mean revenue per visitor, and 252.10% increase in conversions when the results are taken together with the 2nd test for this site.

Author: Francis Teo (8 Posts)

Francis Teo is the Founder and eCommerce Growth Strategist at the eCommerce Growth Consultancy Bluelambda.


Scroll to Top