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Pricing

Annual Total or Monthly Equivalent Price A/B Test

A monthly equivalent can make an annual commitment look more affordable at first glance, but visitors may mistake it for monthly billing.

  • Pricing
  • Revenue per visitor (RPV)

Control vs Variant

The same value, presented two ways.

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Format
Page
Pricing
Difference
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Hypothesis

Test the price framing while keeping the annual total and billing schedule clear; track cancellations and payment disputes as well as initial revenue.

How to run this test

Primary metric

Revenue per visitor (RPV)

Compare revenue per assigned visitor over the same period and assess later losses separately.

Other metrics

  • Early cancellation rateMake sure cancellations caused by unmet expectations do not increase.
  • Payment-step abandonment rateCheck whether exits increase when visitors see the total amount.
  • Annual plan selection rateCheck whether more visitors switch to a longer commitment.
  • Payment disputes or refund requestsTrack price-surprise contacts relative to purchases.

What to check before and during the test

  • Reference amountCompare the annual total as the main price with the monthly equivalent as the main price.
  • TotalKeep the annual total readable on the same screen.
  • BillingState when the annual payment will be charged in both arms.
  • ScopeKeep annual pricing and terms unchanged; showing a daily equivalent is a separate comparison.
  • Buyer typeReview individual and business buyers separately.

Setup mistakes to avoid

  1. 1Do not make the total too small to read while showing the monthly figure as the only prominent price.
  2. 2If monthly billing is unavailable, do not show a monthly equivalent without saying so.
  3. 3Do not change price framing and price level together.
  4. 4Check pricing-display rules before changing framing in regulated markets.
  5. 5Do not call a win from conversion alone without checking cancellations and refunds.