Conversion
Offer Testing
Offer testing is the systematic evaluation of different promotional offers, pricing structures, and value propositions to determine which drives the highest conversion rate and revenue. It ensures marketing spend is directed toward the most compelling incentive.
Examples
An ecommerce brand tests "20% off" against "Free shipping" against "Buy one get one 50% off" and discovers that free shipping converts 30% better despite a lower discount value.
Best Practices
Test one offer variable at a time, measure both conversion rate and total revenue impact, account for margin differences between offers, and consider long-term customer quality.