Price test
A test where different groups of shoppers see and pay different prices for the same product, to find the price that earns the most.
A price test splits shoppers at random and charges each group its own price. Done properly, each shopper sees one price and pays exactly that.
Lower prices usually convert better, so price tests are judged on revenue or profit per visitor, not conversion rate.
Half of the shoppers see a jacket at $128, half at $115.20. The lower price sells more units, but the higher one earns more gross profit per visitor.
Related terms
- Offer testA test that gives different groups of shoppers different offers, such as 10% off versus $10 off, and compares what each earns after the discount.
- Profit per visitorGross profit from orders divided by visitors: revenue minus product costs and other variable costs, per visitor in a variant.
- Revenue per visitor (RPV)Total order revenue divided by visitors in a variant: a goal that combines how many visitors buy and how much they spend.