Price Sensitivity Detector

Correlates every price change with its impact on conversion

  1. agent ›The 'Linen Blazer' went from DKK 1,199 to DKK 1,349 on Monday. Its conversion rate has dropped from 3.2% to 1.7% since — 4 days, 2,300 visits.
  2. you ›Our supplier raised the cost price. We can't go back to 1,199.
  3. agent ›Then compare revenue, not conversion: at 1,349 it brings in about DKK 13,200 a day; at 1,199 it brought in about DKK 22,100. The higher price doesn't make up for the lost sales.
  4. you ›What about 1,299?
  5. agent ›I have no data at 1,299 — it has never been sold at that price. Try it for a week. I'll measure it against both and flag it on Monday if conversion doesn't come back.

What it does

A price change is an experiment whether you meant it as one or not. Every day this agent picks up the price changes Historian detects on your product pages from the product history and measures each one: conversion rate and revenue before the change against after it. When a price increase is statistically associated with a meaningful drop in conversion, it raises an alert with the size of the drop, the revenue it costs per day, and the product flagged for review. Because it compares revenue and not only conversion, it also tells you when a higher price that sells fewer units still earns more — and when it doesn't.

Category
Revenue Opportunity
Data sources
Product statistics · Product history
Schedule
Daily

An example insight.

What a result from Price Sensitivity Detector looks like. The numbers are an illustration, not a customer's.

Price Sensitivity Detector · Price Alert · Example

Linen Blazer price increase cut conversion — review advised

The Linen Blazer price increase from DKK 1,199 to DKK 1,349 on Monday coincides with a 45% conversion drop, with traffic unchanged. Revenue from the product is down despite the higher price. Consider a partial rollback to DKK 1,299.

DKK 25,000

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