projecteverest

Adopted Experiment

[Proposed Experiment]: Price Test HEALTH AMISEN APRIL 2019

by
Abbey Dyson
Abbey Dyson | 1 month ago | in ROA **TRAINING**

Lean Phase: Revenue Streams

Assumptions:

Testing yearly subscription at price points of $240, $120 and $60 with all other independent variables from currency test constant, the change of paid deposit conversion rate will indicate the correct price to use for our product and the customer segment. 

Time Box:

 3 hours

Success Metric
Number of people who pay a $30 deposit for a yearly subscription MVP at $240/$120/$60 price point vs. number of people who paid a deposit without the total price being disclosed.  
Price * conversion. 

Criteria:
Green Light- What will you do if you're successful

Success Point – <1% reduction in conversion rate. 
Orange Light – Re-evaluate the price point of $120 and $60
Failure Point – >1% reduction in conversion rate
Red Light – Reconsider revenue stream

Experiment Build:

1)     Conduct F2F interview (sales pitch, build value etc)

2)     Outline MVP

3)     Present price point of $240 yearly subscription

4)     Deposits paid/ F2F interviews

Meet with Eena to co-ordinate F2F meeting with remaining EOI
Product message is:
‘A personalised tool that empowers you to take pre-emptive measures that monitor and give you control over your health.’
The new price is for a yearly subscription to an application (MVP).

edited on 28th April 2019, 07:04 by Abbey Dyson

Wade Tink 1 month ago

To improve this I suggest you test 3 different price points. The key is to not have any other variable than price.

The price points I would suggest are:
$60- Current price point
$120- Double current
$240- Double it again

Then you can see the conversion over three points and it will give you an indication as to whether conversion is increasing as you increase the price or whether there is a limit to the price increases you can implement.
If it appears to be straight line then you can conduct a second price experiment.

The success metric is all around "Price x conversion" to give you a whole dollar value, it's not just conversion.

Reply 0

Abbey Dyson 1 month ago

Thanks Tink! Updated

Reply 0

Wade Tink 1 month ago

Status label added: Experiment adopted

Reply 0

Share