Comfy analyzed price elasticity of demand for their customer acquisition channels and discovered new ways to increase their margins without losing conversions

Objective

The wide range of products and strong price competition in the home appliances and consumer electronics market requires innovative pricing strategies and tactics. To find new ways to increase margins, Comfy looked more closely into their conversion rates during price spikes and analyzed the price elasticity of demand for their customer acquisition channels, product categories, and product brands.

Analytical tasks
  1. To analyze how the conversion rate changes when product price deviates from average in the market.
  2. To calculate buyers price sensitivity within acquisition channels, product groups and brands.
Results
  • Comfy developed new pricing scenarios which take into account the main customer acquisition channels.
  • Advertising tactics were changed for paid traffic sources and a new policy for CPA partners was implemented.
  • New methods were discovered for automatic repricing to increase margins without losing conversions.

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