ABCD Test – Finding the right price point for a product

For this project, we wanted to find the right product for our clients to enter the German market with.They already operate in other countries.
In the first 2 sprints, we focused on finding the product to launch. We let 11 products compete against each other and collected data to make a statement about their performance. Finally, we were able to find a product that stood out. Therefore we wanted to know more details about how the product should look like exactly. The next step was to find the right price point. With an A/B/C/D test, we came up with an experiment that would test 4 different price points for the same product.

Topic
Lean Innovation
Industry
HOME INSURANCE
Duration
2 Weeks
Team Size
2 Innovation Manager
1

Week Define & Finalize

In the first week, we worked on finalizing the offer of the product family, that we wanted to test the pricing for. For each offer, we created a landing page with the exact same content and ad copy for Google Ads. With just one difference: the price for each of the 4 landing pages was different. Because we used the exact same content and design, the only perceivable distinguishing feature for the customers was the price.

2

Week Experiment & Validate

We let the experiments run simultaneously for about 5 days, depending on their respective performance. Once all 4 of the ads hit a significant amount of data, a report for our clients was created. We took informative metrics such as clicks, impressions, CPC, conversion, etc into consideration. This way, we could define the best price range for their launching product in Germany. The final report also included a presentation, to make sure our clients could follow our thought process and challenge it.

This mini-sprint was part of a bigger lean innovation sprint we ran for the client. Within just two sprints and a total of 8 weeks, we found a suitable launching product amongst 11 alternatives, to enter the German market with. Furthermore, we selected the right market niche and price point for it.

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