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Boomerang Commerce Launches A/B Testing Platform For Pricing | TechCrunch

Boomerang Commerce, a startup that helps online retailers optimize their pricing and a 2014 Disrupt NY Startup Battlefield finalist, today announced the launch of its A/B testing service for pricing.

Marketers love A/B testing to see which message works best, but when it comes to pricing, offering two different customers two different prices for the same product can quickly become a recipe for disaster. You’re bound to upset some customers, after all, when they find out they paid more for a product than somebody else. Boomerang CEO Guru Hariharan acknowledges as much. “You can’t just use standard tools,” he said. “If you do that, you’ll lose trust. More often than not, it’s a bad idea.”

So what Boomerang does is allow retailers to test different pricing strategies and algorithms across a small group of products, for example, to test which ones maximize the retailers revenues and profits. The idea here then is less about charging customer A one price and customer B another, but to see which pricing strategies work better. Say you have 100,000 products in your inventory (the company only works with very large retailers that do $25 million or more in online sales). Boomerang now lets them take a representative set of 500 of these and test different pricing strategies on them.

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Boomerang Commerce Launches A/B Testing Platform For Pricing.

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