Lower price, no free gift ($82 vs $85 + gift): +46.6% conversion
Test run byOliver KenyonConversionwise
Commentary byLiftArchiveOur analysis, not theirsLowering the price from $85 with a free gift to $82 without the gift raised conversion rate by 46.63% and revenue per visitor by 50.34%. Oliver Kenyon ran this three-way split test after seeing many sales came from price-sensitive markets. A $79 version also beat the control, but by less than $82.
- Conversion rate: +46.63% for $82 (1.01% to 1.48%). The range was +11% to +95%, so the size of the lift is uncertain.
- Revenue per visitor: +50.34% for $82 ($0.88 to $1.32), range +1% to +126%.
- The $79 arm also won (1.25% conversion, $1.06 RPV) but trailed $82, so cutting deeper did not pay.
- The tool estimated about $43,025 extra per month and 456 extra orders.
The change
Price cut from $85 to $82 and the free gift removed.
Simplified mockup drawn by LiftArchive from the shared screenshots.
Control
The product sold at $85 and came with a gift with purchase.
Variant
The gift was removed and the price dropped to $82. A third arm tested $79, also without the gift.
Why it likely won
Our reading of the result, not the practitioner's claim.
- in price-sensitive markets, a lower sticker price mattered more than a bonus item.
- a gift's value is hard to judge, while $3 off is certain.
- $82 may have hit a sweet spot where buyers felt the deal but the store kept enough revenue per order.
Caveats: The confidence ranges are very wide, so the real lift could be much smaller. The effect of the price change and of removing the gift cannot be separated.
Who ran it
Oliver Kenyon (@oliverkenyon) shared this test on X. The numbers and screenshots are theirs.
View the original post on X
How to run this test on your store
- Hypothesis
- If we remove the gift with purchase and lower the price slightly, then revenue per visitor will rise because price-sensitive shoppers value a lower price more than a bonus item.
- Primary metric
- Revenue per visitor
- Guardrails
- Gross margin per order
- Average order value
- Refund rate
- Who should test it
- Stores selling to price-sensitive markets, or where the free gift is not something buyers clearly want. It may not help premium brands where the gift is part of the appeal.
Questions
Is a free gift better than a lower price?
In this test, a $3 lower price with no gift beat the $85 price with a gift by 50% in revenue per visitor. The brand's buyers were largely price-sensitive.
How many price points should I test at once?
This test ran three: the $85 control, $82 and $79. The middle option won, which a two-arm test would have missed.
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@oliverkenyon@oliverkenyon@oliverkenyon@oliverkenyon
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