It’s crucial for businesses to find the right balance between hitting revenue targets and providing competitive pricing that attracts incremental spend.

One powerful way businesses are finding this balance is by optimizing their pricing and promotion strategies with in-market testing. Business experimentation reveals a better understanding of consumers’ sensitivity to price changes, and how that sensitivity varies by product, location and brand.

This case study explores how a large North American retailer used Mastercard’s Test & Learn® solution to evaluate and optimize three pricing initiatives – lowering prices for makeup and shampoo and increasing the price of vitamins.

Before rolling out the pricing changes nationwide, they used Test & Learn to understand the expected impact of these price changes on overall revenue, units sold and customer loyalty and how that impact varied based on store and market characteristics. This analysis enabled them to identify which pricing changes customers would respond positively to and build out a tailored rollout plan ultimately leading to >$2.5M in annual incremental value.