Case Study
A strategic pricing redesign that transformed the Rate & Transit Time tool from a commodity utility into a powerful account acquisition engine by reframing price perception through anchoring and transparent discount messaging.
My Role
Product Manager & UX Designer
Team
PO, UI Designer, IT Development, Customer Service, Pricing, Legal
Scope
APAC — 2 pilot markets (AU, SG)
Timeline
6 months research to A/B test launch
The Design Process
This project was structured around a hypothesis: pricing perception is the primary barrier preventing prospect-to-customer conversion. We validated this through data, research, and experimentation.
Behavior analysis, VOC interviews, drop-off tracking
Price sensitivity mapping, conversion funnel analysis
Price anchoring strategy, visual comparison design
UAT with stakeholders, A/B testing in AU & SG
Conversion lift, account opening rate, pricing perception
01 / Empathize
The Rate & Transit Time tool is often the first interaction prospects have with FedEx. I analyzed three months of usage data and conducted interviews with Customer Service and Sales teams to understand where and why prospects drop off.
01
Usage Data Analysis
Analyzed three months of rate quote data and discovered that 57% of rate quotes were performed by non-logged-in users (prospects), confirming this tool is a critical acquisition touchpoint, not just a utility.
02
Drop-Off Behavior Tracking
Observed that prospects dropped off immediately after viewing rates — indicating price shock rather than usability issues. The full, undiscounted rates were creating a psychological barrier to continuing the journey.
03
Voice of Customer (VOC)
Engaged Customer Service and Sales teams to gather insights on what prospects tell them about pricing. Confirmed that cost perception and lack of transparency were primary objections to account opening.
02 / Define
The core issue was clear: prospects only saw full, undiscounted rates, which felt high and discouraged further action. This was creating friction at the very top of the funnel, negatively impacting account acquisition.
Price Shock
Non-logged-in users see standard (list) rates without any discount visibility — creating an immediate perception of high cost and low value.
Lack of Transparency
Prospects have no visibility into what better pricing might be available with an account — reducing motivation to explore further.
Missed Acquisition Signal
The tool is positioned as a utility rather than a conversion lever. It should be an opportunity to demonstrate value and incentivize account creation.
No Comparison Anchor
Without seeing the discount, prospects can't contextualize the value of opening an account — making the CTA feel unmotivated.
03 / Ideate
To address the pricing barrier, I partnered with Pricing, Commercial, and Legal teams to redesign how pricing is presented to prospects. The solution centered on price anchoring — using visual contrast to reframe cost perception.
01
Strikethrough List Price
Display the standard (full) rate with a strikethrough to signal that it's not the primary offer — establishing a clear visual anchor for comparison.
02
Highlighted Discounted Rate
Show the discounted rate prominently next to the strikethrough — giving prospects immediate visibility into potential savings and value.
03
Flat 40% Discount Offer
Introduce a time-limited flat 40% discount for new account holders — a concrete incentive that reduces price resistance and motivates account creation.
04
Visual Comparison & CTA
Add a comparison showing the pricing difference between non-logged-in and account holder rates, with a clear call-to-action linking directly to account creation.
04 / Test
Before rolling out globally, we validated the hypothesis through rigorous testing — starting with stakeholder UAT, then moving to controlled A/B testing in two pilot markets.
Stakeholder UAT
Conducted User Acceptance Testing with Customer Service, Operations, and Pricing teams to ensure seamless data integration and legal compliance for pricing communication.
A/B Test Design
Randomly selected test groups of non-logged-in users in Australia and Singapore. Control group saw standard rates; test group saw strikethrough + discounted rate + 40% offer.
Conversion Metrics
Tracked account opening rate, drop-off rate after rate viewing, and 7-day return visitor conversion. Measured if experiment group had higher likelihood of account creation.
Message Refinement
Iterated on call-to-action messaging and discount positioning based on early test results. Optimized tone and urgency to maximize conversion without appearing manipulative.
Legal Alignment
Worked closely with Legal to ensure all pricing claims were compliant and clearly communicated as conditional (tied to account benefits or promotional periods).
05 / Results
The price anchoring strategy successfully reframed how prospects perceived FedEx pricing. By making discounts visible and concrete, we converted a friction point into a conversion lever.
+7%
Conversion Lift
Month-over-month increase in account openings during A/B test
40%
Discount Offer
Time-limited incentive for new account holders
2
Pilot Markets
AU and SG A/B test launch
APAC
Scaled Rollout
Successful expansion to other markets based on pilot results
Price anchoring works — but only with clear context
Strikethrough pricing alone wasn't enough. The discount needed to be positioned as a concrete benefit of account creation, not just a generic offer.
Transparency builds trust in pricing
Showing the comparison between non-logged-in and account holder rates helped prospects understand the value proposition. Clarity reduced price resistance.
Timing and urgency matter
The flat 40% discount was most effective when positioned as time-limited. Scarcity and urgency motivated immediate action without feeling aggressive.
Priscilla Karen Yau 2026