Case Study: Classictic

Using A/B testing to determine Classictic customers’ willingness to pay.

Project Summary

In this case study we explain the approach used by Smart Pricer to determine Classictic customer’s willingness to pay by using A/B testing. The Case study shows the used approach in details and presents the final recommendations for Classictic based on A/B testing results.

Our Strategy

Classictic had been working with a historically grown fee base of fixed fees per venue. The web portal operator asked Smart Pricer to optimize its fee structure to achieve a revenue increase. We approached the task with a historical data analysis of Classictic. Then we created three price groups to test the willingness to pay. At the end we applied the test results in optimal price points per venue and geolocation.

Proven Results

N

+100% price increase in certain geolocations

For some venues and certain geolocations, the demand is highly inelastic to price.

N

+100k€ annual revenue increase for 7 venues

Overall, we conducted 14 tests for 7 venues over 4 months

N

+200-250k€ total potential annual revenue incerase

Based on the achieved results, the total potential annual revenue increase for all venues is in the range of ~200-250 kEUR

Download Results

Download the document by entering your email address in the field below. You confirm to subscribe to Smart Pricer’s newsletter for regular news and updates.