6% increase in Average Order Value (AOV)

By running a price test using ABConvert, the merchant was able to raise product prices without negatively impacting conversion rates, leading to a 10% increase in revenue and 6% increase in AOV.

About the Customer

The puzzle store was founded in 2020. The merchant wanted to answer a very important question for parents: How can we find creative and fun activities to recommend our children to play? While the store initially targeted children, adults progressively became the main customers of the store as they were looking to satisfy their quest for creativity. The store is now present on three continents and is serving hundreds of creative seekers each day.

The Challenge

The main questions that the merchant wanted to answer was:

• How much higher can I raise the price of certain products without impacting the sales volume?

To answer this question, the team looked at their product catalogue and each product’s profit margin to find suitable products to raise prices on. The merchant was facing increasing pressure on their profit margins due to rising material and operational costs. They needed to find a way to maintain profitability without sacrificing their sales volume.

The Approach

Based on the team’s findings, an A/B test was designed with the hypothesis:

• We show customers a price increase of 10% on select products.
• The conversion rate, especially the order rate will remain the same.

The Solution

The merchant turned to ABConvert's price testing features to help them understand their customers' price sensitivity and optimize their pricing strategy. For price tests, ABConvert provides a personalized theme check service for all users with no extra charge. The theme check experts created a customized QA test for the merchant’s price test to ensure that the theme they are using can display the variants correctly.

The merchant created a variant that increased prices by 10% across selected products, allowing them to measure the impact on sales volume. Throughout the test, the merchant could closely monitor results through ABConvert's real-time analytics dashboard. This reactive approach would allow them to quickly halt the test if they observed any significant negative impact on conversion rates, ensuring they could protect their business while exploring optimal pricing.

Results

• No significant decrease in conversion rates despite the 10% price increase
• 6% increase in Average Order Value (AOV)

Conclusion

By leveraging ABConvert's price testing features, the merchant was able to successfully implement a price increase without negatively impacting their sales performance. The ease of setup and real-time monitoring capabilities gave them the confidence to make data-driven pricing decisions.

Looking ahead, the merchant can continue using ABConvert to test additional price points and further optimize their pricing strategy. This iterative approach will help them identify the optimal price points that align with their customers' willingness-to-pay while maintaining healthy profit margins.

Through their partnership with ABConvert, the merchant has transformed a potential business challenge into an opportunity for growth, proving that smart price testing can lead to better business outcomes for both the company and its customers.

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