Case Study: Split Testing Like A Pro

Most new companies in the digital marketing space see split testing as a shiny new tool and jump right into it with reckless abandon.

Inevitably, this leads to lost profits and a disjointed funnel flow.

Let me explain to you how a properly executed split test can reveal vital insights into the minds of customers.

A client of ours had a brand new funnel constructed and wanted to test out a few different price points on his tripwire offer.

This is Key Point #1, having a clear objective for the split test. He wanted to test what price point was best for this offer on his 2 main sources of traffic, Facebook and his House list.

Here are Key Points #2 and #3: he is testing the same offer and using the same traffic on each split test. The offer is the exact same except for the price, see the page screenshots below.

The client wanted to split test his tripwire offer at $27 and $47 price points. This Key Point #4, limited variations were used, thus resulting in faster test results.

These price points are fairly common markers for digital marketing, seeing as they’re less than $50, but giving enough value to warrant either price when purchased.

A very interesting result came out of this test, I’m going to let you stew on what you think it could be.

Remember, his traffic sources were Facebook (cold traffic) and his House List (warm traffic), that’s 2 split tests: 1 for cold traffic and 1 for warm traffic, with each test having 50% seeing the $27 offer and 50% seeing the $47 offer.

What price point do you think won?

It’s really a trick question because both price points won; the $27 offer won for the Facebook traffic and the $47 offer won for the House List traffic.

If you’re a bit surprised, so were we. That’s what direct digital marketing is all about, finding the fine nuances of a traffic source and using them to your company’s advantage.

On this test, we discovered the House List traffic valued the product regardless of the price, meaning his current customers have high value perception.

On the other hand, not shockingly, the cold traffic customer didn’t have this high value perception and therefore choose the $27 offer more often.

See the $27 split test results below.

Notice, the test wasn’t stopped when the first sign of a trend was noticed on July 27th, instead we waited another 2 weeks to make sure the trend was a true winner, and not a short sale spike.

This is Key Point #5, ending tests too soon can result in false-positive results and thus negatively affect your company’s bottom line.

In summation, we have followed the 5 keys to a successful split test and learned a few pieces of very valuable information that will ultimately lead to increased profits and higher customer retention.

The information:

  1. Current customers have high product value perception
  2. Cold traffic customers do not have high product value perception
  3. The offer converts! This is often highly overlooked and undervalued, we often forget, not all offers convert.

By simply changing the price of the tripwire offer and waiting 2 weeks, we’ve guaranteed the immediate success of this new funnel.

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Dave works directly with our clients and our team to ensure projects get done on time and under budget. He's our clients' main point of contact.

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