Pricing Elasticity Analysis

Success Stories

Pricing Elasticity Analysis
Customer:
UK Telco

Scope

A UK telecom company wanted to estimate the potential impact of reduced outgoing mobile rates on revenues and margins.

Solution

  • Used two comparisons to estimate usage at different price points (for each time of day bucket)
    • Client’s usage for outgoing landline and mobile calls
    • Client with BT on mobile usage and pricing
  • Estimated usage at various price points and the optimal price points (for maximizing margins)

Impact

The company decided to lower its outgoing mobile prices during the week and increase its rates during weekends.

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