Price-based selling has become inevitable in today’s business, and it remains a successful customer acquisition hook. Many of my clients tend to offer a “Low Price Guarantee” and insist on using it as the primary USP in their paid search ad copies. Recently, I had an interesting situation occur around this topic.
My retailer client has a Low Price Guarantee on all of their products. They also have a Price Match Guarantee, where they will match a lower price for the same product sold by one of their competitors. Now, my copywriters faced a dilemma on whether to include “Low Price Guaranteed” or “Price Match Guaranteed” in the ad copies. I proposed to do both and conduct an A/B test between the two. The experiment was conducted over a period of 30 days, after which we sat down to analyze the results.
Before the analysis, I asked my copywriters to take a guess which one they thought would be the winning ad copy. All of them, very confidently, stuck to “Price Match Guarantee”. They said that “Price Match Guarantee” would be more appealing, as it promises that the retailer will match their competitors. I did not have any confronting points and believed that the experiment would also reveal the same point.
Astonishingly, the experiment favored “Low Price Guarantee”. The ad copy with “Low Price Guarantee” performed 22% stronger than “Price Match Guarantee” in terms of click-through rate (CTR). The conversion rate was also higher by about 27%.
This triggered a discussion on what could have caused this variation. We had to understand what was pulling down the charm of “Price Match Guarantee”. Even though we could not find a definitive answer to this, our brainstorming led to the following conclusions:
“Low Price Guarantee” claims that the prices are already slashed. On the other hand, “Price Match Guarantee” says that the retailer will match the lower prices of their competitors. This requires an effort from the user to find the lower price, which he or she may not be interested in.
There are a lot of existing criticisms around the “Price Match Guarantee” offered by big-box retailers. Many of them work with manufacturers and receive products with unique model numbers, which can lead to a denial of price match requests.
“Price Match Guarantee” does not apply when the competitors are offering discounts or any promotional coupons on their products.
Having said that, we do not propose that “Low Price Guarantee” will always work better than “Price Match Guarantee”. The key lies in conducting experiments and figuring out which one of these USPs performs the best for your business.
To get you started, we tested over 10,000 ad copies to figure out what other ad copy “best practices” really work, and the percentage increase each type gives to your CTR. To find out what ad copy practices you need to know for Q4, join us this Friday at 2:00 PM EST for our first ever Ad Copy Championship webinar! We’ll share all of our results with you live so you can increase your CTRs and boost your sales this holiday season.