Common Ratio Testing: Maximizing supplement AOV with math lessons from your Grade 5 classroom

Okay, let’s time travel back to grade 5, when you started learn algebra.

One of the things you might have forgotten about is ratio’s and pattern recognition.

One ratio I want to point out, is the Common Ratio Pattern.

A common ratio of a geometric sequence is a constant that multiplies or divides each term to form the next term.

In English?

When you add the numbers together, they make a new number, which follows a pattern.

Ex: 3,6,12,24,48

The common ratio is 2

3×2 = 6 ; 6×2 = 12 ; 12×2 = 24

You get the point.

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Okay, well what does that have to do with selling supplements?

To be honest, absolutely fucking nothing.

But it’s a good way to get you to remember the split test I’m about to share…

(It’s called storytelling guys)

And the common ratio split test will stick in your brain like glue.

So the typical way to sell supplements is the 1/6/3 model, which looks like the above image.

You pitch the customer a one bottle at a high price point, a three bottle at a moderate price point

And a 6 bottle at a steep discount. Smart marketers will also add free shipping and bonuses to 6 bottle options.

And a few months ago I introduced to you the even bottle strategy.

Which in a nutshell is going selling 2/4/6 instead of 1/3/6.

And that works well to maximize AOV.

But with everything getting more competitive, we wanted to kick it up a notch.

And use the Common Ratio strategy

Yes, you read that right. Selling 12 bottles upfront.

Now I must give credit where it’s due, because this is not my split test originally. It’s my mastermind member – Luke Voigt’s – idea.

There was a drop in conversion (no surprise), from 3.25 –> 2.5%
Aov skyrocketed to $280 (with a few orders being up to $1400)
This is the most important: the take rate on the 6 bottle option was over 40%

This last point is very important. Because in a typical funnel the take rate (the % of people buying) for a 6 bottle option is often below 30%.

But with this method, it pushes that take rate to 40%, which yields staggering AOV boosts.

The big lesson here: test everything.

No idea is too wild.

I expect 3/6/12 to be ripped off over the next year, but that’s pretty flattering.

It just means we need to innovate further.

Peter (& Luke)