Katkat

Design A/B Test for Subscription Price Increase Effectiveness

GoogleData Scientist · Onsite

Last updated

Evaluates experiment design for SaaS subscription pricing and a multivariate sign-up CTA test. Strong answers address pricing-test risks, LTV metrics, factorial design, interaction effects, and guardrails.

Scenario

B2B SaaS company considering raising subscription prices. 2) Website sign-up funnel exploring button color and placement changes.

Question

Your PM asks for a two-week A/B test to evaluate a subscription price increase. How would you design the experiment? Should pricing be A/B-tested at all, and how would you decide if the new price is beneficial?

A sign-up page currently shows a red button at the top. The team wants to test red vs blue and top vs bottom to lift click-through. How would you structure and analyze this multivariate test?

Hints

Discuss metrics (conversion, LTV, churn), sample-size, test length, randomization, interaction effects, user cross-bucket risk, and alternative before-after designs.