A/B + AI: Effective Tools to Transform Price Testing for Your Business

One of the trickiest decisions every business has to make is pricing their products, services, or plans. Price is not just a figure assigned to the things you sell — it will eventually translate into the image of your company in the marketplace. Numerous details factor into the pricing strategy: your competitors' prices, production costs, and the profit you'd like to make. To determine the optimal price, you must be confident that whatever you charge for your product, service, or plan will keep attracting customers and increase your revenue. One of the ways to achieve that certainty is through A/B price testing.

A/B Price Testing

A/B price testing is a traditional optimization method that compares the prices of similar products or plans. Running an A/B price test usually involves the following steps:

1. Choosing the product or plan you want to determine the ideal price for.

2. Gauging price sensitivity: what will the demand be within a specific price range, and what are the price points beyond which it will drop dramatically?

3. Measuring revenue to figure out which price is ideal.

4. Iterating on your results or re-testing with two new price points, if necessary.

5. Deciding upon the highest price that still allows you to convert a sufficient number of customers to meet your business goals.

Cons of Manual A/B Tests

Many businesses opt for manual A/B price testing because of its straightforward procedure. However, this is not the most efficient method that you can currently apply, and here's why:

• Manual A/B testing doesn't offer sufficient depth. Price is a complex phenomenon that depends on numerous factors, some of which are not immediately obvious. In most cases, it is not just price A vs. price B, and it's not always possible for a human to track and record every detail that makes an impact.

• Its duration depends on traffic. If your website doesn't see hundreds of thousands of visitors on a daily basis, you might find it hard to reach statistical significance within a reasonable timeframe. 

• It lacks personalization. Of course, A/B tests involve splitting your audience in half, but the splitting itself is mostly random. It's impossible to predict whether either half had fewer — or more — repeat customers or those who are unfamiliar with your product. 

• It is not flexible enough. You can't expect to run a single A/B test and rely on its results forever. Customer behaviors change constantly, and it is not humanly possible to track these numerous changes or adapt to them. 

With all these limitations, making timely, meaningful decisions based on manual A/B testing has become virtually impossible. Yet, there is a way to apply the method, and a considerably more effective one — with the help of artificial intelligence. 

AI-led Price Testing

AI technologies for marketing campaigns have completely changed the strategic landscape for businesses. When it comes to hypothesizing and experimenting, AI expands the opportunities and compresses the timeframe of A/B testing for anything, including product or plan prices. Moreover, artificial intelligence and marketing strategies go hand in hand, for AI offers unlimited personalization options, which it can further update on the go based on the audience information it receives.

Pros of AI-led Price Testing

So, what are the exact AI benefits in A/B testing?

• AI saves time and improves efficiency through never-ending self-optimization. Remember step 4 from the manual A/B testing procedure above? Well, now you no longer have to remember any of it at all — because AI will run continuous tests for you and then iterate on the results without even stopping the test itself! It will remove poorly performing ideas and replace them with new hypotheses in a continuous, seamless process. 

• AI allows effortless scaling. Any test has to start small and then expand — but with manual A/B testing, this might take years. AI, on the contrary, will discover elegant solutions and suggest the next steps in a matter of months — or even days, resulting in fast implementation of effective marketing strategies with AI.

• AI enables advanced data integration. AI not only helps see a bigger picture but shows all the minute details. Data from various sources is automatically added into your testing program, helping to reduce the complexity for you — and at the same time making the analysis so much more complex. 

• AI takes your campaigns to an unprecedented level of personalization. It can tailor anything — content, prices, paywall conditions, you name it —  to anyone based on abundant data about individual preferences, behavior, and demographic data. It will also enable you to perform granular targeting, or, rather, it will do it for you, thus securing more precise and accurate A/B test results, freeing your mind for strategic decisions, and achieving conversion rate improvement with AI.

A/B Testing Tools for Your Business

The effectiveness of A/B testing and conversion optimization can make or break a company's online presence. This is why you want to explore the vast array of testing automation tools available on the market, with all their features, drawbacks, and distinctive qualities, and find the optimal one for your business.

VWO Testing (opens in a new tab)

Visual Website Optimizer, or VWO for short, is an all-in-one A/B testing and conversion optimization platform. It offers a wide range of features and functionalities that help businesses run complex, in-depth tests at scale and apply the results to perfect user experiences. 

VWO Testing has a user-friendly interface allowing easy operation for beginners and experienced marketers alike. It enables you to simultaneously test multiple elements of your marketing strategy, including sensitive ones, and leverage the testing insights to optimize any points within your customer’s lifecycle and beyond.

However, using a sophisticated solution like VMO inevitably entails certain inconveniences, such as:

• time and effort required to learn to master the tool,

• heavy scripts that can affect your website’s performance,

• and even heftier pricing plans.

PriceWell (opens in a new tab)

PriceWell is a handy instrument that integrates with popular no-code website builders and allows users to embed pricing tables and run A/B tests to find out which price performs best — without changing the code! It also enables you to:

• integrate with Stripe and Wix, saving you weeks of development and, consequently, thousands of dollars,

• discover the reasons for cancellation, thus preventing customer churn,

• monetize with member-only content.

On the downside:

• PriceWell pricing table customization is not so user-friendly,

• a 1% transaction fee applies to new subscriptions started using a PriceWell Pricing Page — and that’s on top of Stripe Transaction Fees,

• there is no AI assistant.

Enhanci (opens in a new tab)

Enhanci is a new instrument that focuses solely on pricing tables and related experimentation. The idea sprouted from observations and personal underwhelming experiences and has grown into a fully functional no-code pricing table builder.   

Enhanci AI marketing wizard conducts a quick initial interview to establish your business vertical, discover your website and product details, and single out your primary competitors. It then comes up with possible pricing plans, checking this item off your to-do list in mere seconds.

Enhanci can help you launch your product much faster thanks to being:

• easy to tailor to your needs,

• mobile-friendly,

• lightweight, so it doesn’t impact your website’s performance,

• affordable and simple, with no extra fluff.

The strategic decisions your business has to make significantly influence your market positioning and revenue generation. While price A/B testing has long been a go-to method, manual approaches come with limitations such as lack of depth, dependence on traffic, and inflexibility. AI application in product marketing has revolutionized the process, saving time and effort, helping achieve impeccably accurate results, and offering unparalleled personalization options. Unlike manual tests, AI-led testing adapts in real-time, providing continuous optimization without constant human intervention. The ability to integrate diverse data sources enhances the overall understanding of market dynamics and consumer behavior and leads to sales optimization with artificial intelligence.

Exploring popular testing tools will provide your business with insights into the varied options for price optimization using AI. While each tool has pros and cons, Enhanci stands out for its focus on pricing tables, ease of customization, affordability, and AI assistance. The integration of AI not only streamlines the testing process but also opens up new dimensions for businesses to explore when optimizing their pricing strategies.