Industrial Goods

Online product sites selling high numbers of SKUs searchable by product category and characteristic are intrinsically vulnerable to price competition. That said, the business can be fairly attractive online in the context of the B2B sale — here the customers tend to be more concerned about reliability, ease of use, service, ancillary services and quality rather than price. In addition, customers may be interested in high value service offerings that augment the goods being sold on the site.

For example, an online site selling plumbing equipment must have a well organized, easily searchable site as a starting point. The breadth of selection and quality of products may permit the site to be relatively competitive, and layering on additional services around design, consultation, warranties or other services may dramatically increase the profitability of purchases made on the site.

Implications For A/B Testing Strategy

Testing messaging around unique products and services that differentiate the company is critical to increasing the number of new customers acquired and converting additional service or product sales. For example, testing messaging around a warranty offer and why it is compelling to a contractor to purchase as an addition to a machine or part order can increase sales 30% or more. Margins on these types of products tend to be high, thus, the impact on the overall business can be substantial and permit further expansion into similar product and service offers.