Experiment library

Test a pricing increase · method v1

Pricing increase with conversion and retention checks

Raise the price for a random share of new buyers and judge it on retained contribution, not first-month revenue.

Hypothesis
Buyers value the product above the current price; a higher price raises contribution per visitor without a proportionate fall in conversion or retention.
Change
Show the higher price to treated new visitors. Existing customers are not changed.
Who is included
New visitors reaching the pricing page during the test.
Compared with
New visitors who see the current price.
Assignment
Random split per visitor, persisted across visits.
Measurement
Retained contribution per pricing-page visitor per arm after the first renewal.

Worked example

3,000 visitors at 3% and $99 gives $8,910 a month. At $129 conversion can fall to about 2.3% before monthly revenue drops. Retention must also be checked at the real renewal timeline before deciding.

Evidence you need

  • Price shown per visitor
  • Paid conversions and refunds
  • Renewals per cohort

Implementation steps

  • Fix the test price and duration
  • Persist assignment per visitor
  • Record price paid per customer
  • Wait through at least one renewal cycle
  • Compare retained contribution per visitor

Cost components

  • Possible lost conversions
  • Support time for price questions

Stop if

  • Treated conversion below the break-even rate for three consecutive weeks

Scale if

  • Higher retained contribution per visitor after renewal

Does not apply when

  • Very low traffic
  • Markets where price discrimination is restricted
  • Prices visible to existing customers who would see two prices

Adapt this experiment to your business

Your values stay in this browser until you sign in, then become a private protocol that records this method and version.

Find someone to implement it