Getting Scientific with Pricing

Introduction

In the world of e-commerce, pricing can be the difference between success and failure. If the price is too high, customers will look elsewhere. If the price is too low, you’ll leave money on the table.

Surprisingly, many businesses lack a deep understanding of their optimal pricing strategy. OpenStore recognizes the pivotal role of pricing and the need for a data-driven approach, which is why they’ve partnered with us at Intelligems to optimize pricing and other aspects of their online stores.

Overview

Founded by a team with extensive experience in price testing, we empower e-commerce brands with A/B testing and other profit optimization solutions. At Intelligems, we make it easy for brands to test product prices, shipping rates and thresholds, volume discounts and offers, site content, and more with a seamless split-testing engine and robust analytics.

Understanding the importance of data transparency, we make all test data available to customers so that results aren’t just a black box. We even enable integration with our customers’ in-house analytics teams, such as OpenStore's. This allows OpenStore to leverage our findings and integrate them into their own analytical processes, creating a cohesive ecosystem for data-driven decision-making.

How Intelligems plugs into OpenStore sites

The process for integrating Intelligems into OpenStore’s online storefronts is straightforward and hassle-free. The integration is light-weight, often only requiring a few lines of code. We take on these integrations and work with OpenStore’s development team to ensure no hiccups or surprises after tests are launched.

How to run good tests

OpenStore has run dozens of tests with Intelligems, and we’ve picked up on a few key factors that make our testing strategy successful. There are several tips we’d recommend to anybody when running A/B tests:

1. Test iteratively: Start with a broad range of price and iterate. Refine to find the optimal price point.

2. Prioritize high impact areas: Focus on areas that will likely have a large impact on conversion and profit.

3. Test year-round: Testing often isn’t one-and-done. Test year-round to understand seasonality and develop a true strategy around pricing and discounting.

The bottom line

The results speak for themselves. Over 80% of the OpenStore brands using Intelligems have seen an uplift in profit, and on average these brands have already increased profit by 13% (and we’re not done yet!).

Jack Archer is one brand that has benefited immensely from price testing. After acquiring Jack Archer, OpenStore had a hypothesis that decreasing the price of Jack Archer’s Jetsetter pants may yield higher conversion and profit, but wanted to know for sure. We ran a price test and confirmed that a lower price significantly boosted the store’s total profit. Since then, the team at Jack Archer has used Intelligems to further test product prices, bundle offers, shipping rates and even the store’s return policy. All of these tests have made it easy for the team to make changes to the store and have given them confidence that these changes have had a positive impact on the bottom line.

Conclusion

By harnessing the power of data-driven testing, OpenStore and its brands have gained critical insights into pricing, shipping, discounts and other aspects of commerce strategy. Intelligems' comprehensive suite of tools, seamless integration process, and expert guidance have empowered OpenStore’s brands to create real value and boost profits in the competitive e-commerce landscape.