Ketonico stands out in the marketplace with a selection of keto staple products that cover food, supplements, snacks, and beverages, all formulated with the intent to promote improved health. Upholding the principles of products, people, and the planet, Ketonico ensures that their offerings are premium in quality, scientifically-backed, and inspired by ancestral wisdom. The Chocolate and Hazelnut Cream is a sought-after delicacy in their product line.
To evaluate the potential impact of price adjustment on sales, Ketonico decided to conduct a test. They hypothesized that reducing the price of the Chocolate and Hazelnut Cream might bolster sales, resulting in a notable increase in revenue.
Given the premium nature of Ketonico's products and the perceived value associated with the Chocolate and Hazelnut Cream, it is believed that a moderate price reduction could significantly enhance the product's appeal without jeopardizing the brand's image of offering high-quality, value-driven products. Therefore, reducing the price might result in a higher conversion rate and increased overall revenue.
The strategy was clear-cut: Decrease the price of the Chocolate and Hazelnut Cream by 30% (from 11.90 euros to 7.90 euros) and monitor the shifts in conversion rate.
Experiment Setup:
The findings were compelling. The overall test results showed:
This enhanced conversion signified an extra revenue of $3,075.20 for every 10,000 visitors viewing this product.
Given Ketonico's average monthly traffic of 50,000:
Key Observations:
Ketonico's strategic price test on the Chocolate and Hazelnut Cream not only underscores the importance of understanding market dynamics and customer preferences but also demonstrates the brand's commitment to continual growth. Harnessing the power of data-driven decisions, Ketonico successfully aligns its ancestral and scientific product formulation ethos with modern market dynamics, ensuring a winning proposition for both the brand and its customers.