Design A/B Test for Subscription Price Increase Effectiveness

Q: Design A/B Test for Subscription Price Increase Effectiveness

This question evaluates competency in experimental design, statistical reasoning, and product analytics focused on pricing experiments and multivariate UI tests for sign-up funnels.

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Question

Scenario

A B2B SaaS company is considering:

Raising subscription prices and wants a two-week A/B test to evaluate the impact.
Improving a sign-up page where the current call-to-action (CTA) button is red and placed at the top. The team wants to test button color (red vs blue) and placement (top vs bottom) to increase click-through.

Task

Pricing test

How would you design an experiment to evaluate a subscription price increase over two weeks?
Should pricing be A/B-tested at all? If so, how? If not, what alternatives would you use?
How would you decide if the new price is beneficial?

Multivariate sign-up test

How would you structure and analyze a multivariate test for button color (red vs blue) and placement (top vs bottom) to lift click-through?

Hints

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

Design A/B Test for Subscription Price Increase Effectiveness

Scenario

Task

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Design A/B Test for Subscription Price Increase Effectiveness

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Scenario

Task

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