Price is often one of the main contributing factors that can make or break whether a member upgrades and takes out a subscription. Whether you’re a new partner or an experienced partner, regular price testing will give you insight into the market and help you understand what members are prepared to pay.
When you’re testing, start on a lower price point and gradually increase this. If you start with a high price point and then lower it, you risk devaluing your site.
If you’re an existing partner and are experiencing low conversion rates, a drop in your initial cash and an increase in downgrades, this could because your price point is too low or too high. Implementing a rate card test will help you to determine your optimal price point.
Rate card testing will help you to evaluate which price points work best for each site by analysing which site performs better against a range of metrics. An important metric to look at is ‘initial cash per basic after refund’. This will show you how appropriate the price point is for your demographic, as it gives a holistic view of conversion rate, subscription value and volume of refunds.
You can also test the most effective way to display prices on the payment page. For example, you might find that pointing out the subscription equates to ‘only 45p per day’ is an effective sales pitch and subsequently increases conversion.
You can also test different variations of payment subscriptions. For instance, you could test Diamond (one of the price points we offer) on a 1 month highlight against Diamond +1 on a 3 month highlight. ‘Highlight’ means which package is shown most prominently, as you can see in the image below.
This will help you to understand the best way to showcase your payment options to achieve a good conversion rate.
Analysing your price points regularly is a really valuable way of increasing your revenue per member. It’s simple but effective.
To set up a rate card test, speak to your partner manager and let them know which payment bands or subscription packages you want to test. They will set the test up, evaluate the results and let you know which pricing strategy works best on your site. It is important that you research the market and existing competitor sites to determine appropriate price points.
It’s worth noting that to be able to analyse your test data accurately, your site must have a high enough volume of traffic to ensure the data will be conclusive. We’d recommend that you are open to testing, once the price is right, you are likely to have members for longer as they are happy with the price being offered.
To find a breakdown of the prices available to you, please click here.