A/B Testing
Test different discount levels per country to optimize conversions.
GoPayLocal’s A/B testing lets you test different discount levels for the same country to find the optimal balance between conversion rate and revenue.
Why A/B Test Discounts?
Section titled “Why A/B Test Discounts?”A 30% discount might convert better than 20%, but is the extra conversion worth the 10% revenue per sale? A/B testing helps you answer this.
Example question: Does a 40% discount for India convert enough more than 30% to justify the lower per-sale revenue?
How It Works
Section titled “How It Works”- Create two campaigns for the same product with different discount settings
- GoPayLocal randomly assigns visitors to one of the campaigns (50/50 split)
- Track conversions for each variant
- After sufficient data, pick the winner
1. Create Variant Campaigns
Section titled “1. Create Variant Campaigns”Create two campaigns for the same product:
Campaign A — Control (30% discount for India):
Name: Pro Plan PPP - ControlPricing Mode: GroupTier 4 (India): 30%Campaign B — Variant (45% discount for India):
Name: Pro Plan PPP - VariantPricing Mode: GroupTier 4 (India): 45%2. Enable A/B Testing
Section titled “2. Enable A/B Testing”In the dashboard, link the two campaigns as an A/B test:
- Go to Campaign A > Settings > A/B Testing
- Click Create A/B Test
- Select Campaign B as the variant
- Set the traffic split (default: 50/50)
- Click Start Test
3. Monitor Results
Section titled “3. Monitor Results”View A/B test results in the analytics dashboard:
| Metric | Campaign A (30%) | Campaign B (45%) |
|---|---|---|
| Impressions | 5,100 | 5,080 |
| Copies | 1,428 | 1,524 |
| Redemptions | 204 | 279 |
| Conversion Rate | 4.0% | 5.5% |
| Avg Revenue/Sale | $69.30 | $54.45 |
| Total Revenue | $14,137 | $15,192 |
4. Pick a Winner
Section titled “4. Pick a Winner”In this example, Campaign B (45% discount) generates more total revenue despite lower per-sale revenue, making it the winner.
Statistical Significance
Section titled “Statistical Significance”GoPayLocal does not automatically calculate statistical significance, but you can export the data and use standard tools:
- Minimum sample size: Aim for at least 100 conversions per variant
- Test duration: Run tests for at least 2 weeks to account for weekly patterns
- Confidence level: 95% confidence is standard
Best Practices
Section titled “Best Practices”Test One Variable at a Time
Section titled “Test One Variable at a Time”Only change the discount percentage between variants. Keep everything else the same (message, colors, position) to isolate the impact.
Test the Right Countries
Section titled “Test the Right Countries”Focus A/B testing on countries with enough traffic to reach statistical significance. India, Brazil, and Nigeria are common high-traffic PPP markets.
Consider Revenue, Not Just Conversions
Section titled “Consider Revenue, Not Just Conversions”A higher conversion rate doesn’t always mean more revenue. Calculate total revenue for each variant:
Total Revenue = Conversions × (Base Price × (1 - Discount))Don’t Test Too Many Variants
Section titled “Don’t Test Too Many Variants”Stick to 2 variants (A/B). More variants require proportionally more traffic to reach significance.
Ending a Test
Section titled “Ending a Test”When you’re ready to end a test:
- Go to the A/B test settings
- Click End Test
- Select the winning variant
- The losing variant is paused
The winning variant becomes the active campaign, serving all traffic.