Digest...

Companies can see massive performance increases through constant A/B experimentation if done correctly.

One key element to test is price. Steven Sinofsky, a board member at Andreessen Horowitz recently wrote that, “Nothing is more critical to a software-as-a-service (SaaS) business than pricing strategy.” I totally agree and experimenting is a key piece of pricing strategy. Testing things like how price is displayed, amount to charge, and how often is all part of the puzzle.

For companies with a sales team, A/B experiments on price brings up three key questions:

1. How will sales know which price a lead saw?

2. How can we know what price they are going to see if they haven’t visited the pricing page yet?

3. How will we make sure everyone at the company sees the same price?

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