Figuring out how much to charge for a product is a daunting task. Generally speaking, every seller tries to hit the perfect sweet spot between a price point that would be competitive in the market they are targeting, but also one that would bring them the most profit.
But what is A/B testing? Well, it is quite simple once you understand it. A/B testing allows developers to display different experiences and information to users in order to gather analytic data. Then, after analyzing said data, a decision is made on which approach is more successful at delivering the desired results.
In the case of in-app purchases, this new tool from Google will allow developers to display different prices and get a detailed view of how users respond to the experiment. So, technically, if a $6 price tag is presented on your phone, the person next to you might be asked to pay $12 for the same product/service.
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An illustration showing what Google's A/B testing tool for in-app products would look like.
Furthermore, the developers can get crucial analytic information regarding buyer ratio, orders, new installers, revenue uplift, and average revenue per paying user. These A/B tests can also be rolled out to specific markets, making them targetable to particular areas and groups of people.
Google says price experiments for in-app products will be available in the coming weeks and that developers will be able to manage them directly within Play Console, which will have a new dedicated section under Monetize > Products > Price experiments.
So, what does all of this mean to us average Joes that don't make apps for a living, though? Well, it just means that we might see some price changes from time to time in the apps we use. This could result in lower or higher price tags, but whatever the case, it might be worth it to note down or take a screenshot of the numbers you are seeing right now (just for reference and for the sake of tracking).
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Aleksandar is a tech enthusiast with a broad range of interests, from smartphones to space exploration. His curiosity extends to hands-on DIY experiments with his gadgets, and he enjoys switching between different brands to experience the latest innovations. Prior to joining PhoneArena, Aleksandar worked on the Google Art Project, digitizing valuable artworks and gaining diverse perspectives on technology. When he's not immersed in tech, Aleksandar is an outdoorsman who enjoys mountain hikes, wildlife photography, and nature conservation. His interests also extend to martial arts, running, and snowboarding, reflecting his dynamic approach to life and technology.
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