TOOL

Pricing Control Tower Docs

Variables used to test price/packaging variants against segment economics and guardrails.

Input data fields

FieldMeaningExample / rangeUsed by
experiment.name / hypothesisTest identity and expected business effect.Pro plan packaging test / increase ARPU without churnExperiment registry and decision record
experiment.ownerAccountable operator for the pricing test.Growth leadDecision ownership
experiment.holdoutPercentShare of eligible traffic preserved as control.0.10Holdout health and confidence
experiment.minimumSampleSizeMinimum sample required before confident action.1,000Extend vs promote decision
experiment.minGrossMarginPercentLowest acceptable gross margin for treatment.0.72Margin guardrail
experiment.maxChurnDeltaPercentMaximum tolerated churn increase.0.03Rollback guardrail
variant.monthlyPrice / annualPricePrice points being tested.$29 monthly / $290 annualARPU and price response modeling
variant.packagingChangeWhat changes in the offer beyond price.Adds team reportingOperator context and decision rationale
segment.eligibilityRuleWho belongs in a pricing segment.active SMB accounts with usage > thresholdSegment inclusion
segment.baselineConversionRate / baselineChurnRatePre-test conversion and churn behavior for the segment.0.08 conversion / 0.04 churnSimulation baseline
segment.baselineARPU / monthlyVolumeExisting revenue and scale of the segment.$65 ARPU / 4,000 monthly usersRevenue lift sizing
scenario.conversionLift / churnSensitivity / demandElasticityOperator assumptions for treatment response.0.08 lift / 0.02 churn sensitivity / 0.35 elasticitySimulation stress test

Model variables and ranges

VariableTypeRangeUsed by
monthlyPrice/annualPricecurrency$0+Variant ARPU modeling
baselineARPUcurrency$0+Segment baseline revenue
baselineConversionRate/baselineChurnRatefloat0-1Experiment simulation
grossMarginPercentfloat0-1Margin guardrail
minimumSampleSizeinteger1+Holdout health and decisions
conversionLiftPercentpercentany practical numericSimulation scenario
churnSensitivityPercentpercentany practical numericGuardrail stress test
demandElasticityfloat0+Price response modeling

Formulas and recommendation rules

Model stepFormulaDecision rule
Conversion ratebaselineConversionRate * (1 + conversionLift - priceDelta * demandElasticity)Feeds segment-level treatment revenue.
Net revenue lifttreatmentNet - controlNet - churnCostPrimary economic output for promotion decisions.
Recommendationrollback on unhealthy holdout/margin/churn, pause on support overload, extend on low sample/confidence, otherwise promoteControls decision queue state.