A template for tracking the performance of different pricing strategies tested in the market
Document Title: A/B Pricing Strategy Test Report
Report Period: January 2025
Test ID: ABP-[Unique ID]
Prepared by: [Analyst Name]
Department: Pricing Strategy / Market Research
Date of Submission: [Date]
1. Test Overview
Define the objective, hypothesis, and strategic context of the test.
1.1. Objective
- To evaluate the impact of two different pricing models on revenue, conversion rates, and customer retention, in alignment with the SCMR-1 Q1 pricing strategy.
1.2. Hypothesis
Example:
“If we offer a bundled pricing model (Test B) instead of a standalone per-unit model (Test A), we expect to see a 10% increase in average revenue per user (ARPU) without negatively affecting the conversion rate.”
1.3. Strategic Alignment
- This test supports Q1 goals of increasing ARPU by 12% and reducing churn by 5% through optimized pricing strategies, as outlined in the SCMR-1 report.
2. Test Design
Detailed layout of how the test was structured, including sample groups and variables.
| Element | Description |
|---|---|
| Test Type | A/B Pricing Test |
| Product / Service Tested | [SayPro Platform / Training Package / SaaS Tool] |
| Test Duration | [Start Date] – [End Date] |
| Audience Segment | [e.g., New Users, SME Clients, Region-Specific Audience] |
| Sample Size (A/B) | Group A: [XXX users] / Group B: [XXX users] |
| Channels Used | Website, Email Campaign, Landing Pages, Sales Outreach |
| Controlled Variables | Features, messaging, onboarding flow |
| Independent Variable | Pricing model |
| Key Metrics | Conversion Rate, ARPU, CAC, Churn, Lifetime Value (LTV) |
3. Pricing Strategies Compared
Lay out the specific pricing models or packages tested.
| Group | Pricing Model | Description | Monthly Price | Key Features Included |
|---|---|---|---|---|
| A | Standard Tier Model | Fixed per-user pricing | $49/user | Full access to Platform A |
| B | Bundle Model | Multi-user package + bonus support included | $199/5 users | Platform A + Dedicated Support |
Optional: Include screenshots or landing page mockups used in test variants.
4. Performance Metrics
Track and compare performance outcomes from both test groups.
| Metric | Group A (Standard) | Group B (Bundle) | % Change (B vs A) | Insights |
|---|---|---|---|---|
| Conversion Rate (%) | 4.2% | 5.8% | +38% | Bundle offer more appealing |
| Average Revenue per User | $49 | $56.80 | +16% | Increased value per conversion |
| Customer Acquisition Cost | $120 | $132 | +10% | Slightly higher, offset by higher ARPU |
| Churn Rate (30-day) | 6.1% | 4.3% | -29% | Lower churn for bundled customers |
| Lifetime Value (LTV) | $623 | $812 | +30% | Strong LTV improvement |
5. Statistical Validity Check
Ensure results are statistically significant.
- Confidence Level Used: 95%
- P-Value Threshold: < 0.05
- Statistical Test Used: [e.g., Chi-square, t-test]
- Significant Findings:
- Yes / No
- Explanation: [Include confidence interval results, variance observations, and margin of error]
6. Visual Summary
Include charts and graphs for stakeholders (optional but encouraged).
- Conversion Funnel Comparison
- Revenue per User Chart
- Churn Rate Over Time
- LTV / CAC Ratios
(Graphs can be embedded in PDF reports or dashboards)
7. Learnings & Recommendations
Use data insights to guide future pricing strategies.
- Findings:
- The bundled pricing model increased both ARPU and retention while maintaining a manageable CAC.
- Customers perceived more value when multiple features were packaged at a single rate.
- Recommendations:
- Roll out the bundle pricing model to all new SME clients in Q2.
- Test additional bundle tiers with more advanced add-ons.
- Consider regional pricing tests next, especially in emerging markets.
- Monitor churn post-rollout to validate long-term impact.
8. Action Plan & Follow-Up
Outline next steps and who is responsible for implementation.
| Action Item | Owner | Deadline | Notes |
|---|---|---|---|
| Finalize bundle pricing rollout plan | Head of Product | Feb 10, 2025 | Use B model as baseline |
| Update sales training materials | Sales Enablement | Feb 15, 2025 | Include value messaging on bundle |
| A/B test bundle + add-on | Growth Marketing | March 1, 2025 | Add new support tier to test |
| Monitor post-implementation churn | Customer Success | Ongoing | Weekly report to strategy team |
9. Appendices
Include any additional material, raw data, or test assets.
- A: Email Campaign Copy
- B: Landing Page Screenshots
- C: Raw Export of Metrics
- D: Data Analysis Summary (Excel/CSV)
- E: Reference to SCMR-1 Cost Benchmarks Used
Optional Add-on: Template Formats Available
Would you like this A/B Testing Template in:
- 📄 Microsoft Word / Google Docs format
- 📊 Google Sheets / Excel with formulas
- 📈 PowerPoint summary for leadership review
- 📁 Automated dashboard (Notion / Airtable / CRM-integrated)
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