Finding Evidensia’s Revenue Sweet Spot: Turning Price Sensitivity into Strategy

Executive Summary

Evidensia, a leading veterinary care provider, used causal inference to analyze the impact of price increases on revenue. By isolating the effect of pricing changes from other factors with causal inference, they gained clear insights into pricing strategies' impact on business performance.

Key Results:

• Measured price elasticity to understand customer demand and revenue impact.
• Gained insights for optimizing pricing adjustments without harming profitability.
• Developed a strategic marketing and pricing plan for balanced revenue growth and customer retention.

With these data-backed insights, Evidensia aligned its marketing and pricing strategy to drive revenue growth while maintaining customer demand.

Results

1. Proven Impact – We confirmed a clear effect between price increases and revenue changes.
2. Product-Level Insights – Identified which products were most affected by price adjustments.
3. Consumer Sensitivity – Measured how price-sensitive customers are, helping predict demand shifts.
4. Strategic Guidance – Developed a data-driven pricing and marketing strategy at both product and animal levels to maximize revenue.

Our Approach

By leveraging causal inference techniques, we isolated the true effect of price adjustments from other influencing factors, providing clear insights into how pricing strategies impact business performance. This analysis allowed Evidensia to make data-backed decisions rather than relying on assumptions.
 

The Big Idea

Evidensia needed to understand how price increases impact revenue after noticing a decline. Using causal inference, we aimed to separate correlation from causation, providing clear insights into how pricing changes affect different products and customer behavior.
 

The Strategy

1. Analyze the relationship between price raises and revenue using advanced statistical modeling.
2. Identify patterns in product categories and customer behavior to assess price sensitivity.
3. Develop a pricing and marketing strategy to balance profitability with customer retention.
    

The Process

• Collected and analyzed historical pricing and sales data across multiple product categories.
• Applied causal inference modeling to measure the true impact of pricing changes.
• Identified highly sensitive product categories most affected by price shifts.
• Created data-driven recommendations for pricing adjustments at both the product and animal levels.

This structured approach allowed Evidensia to develop a targeted pricing and marketing strategy, ensuring sustainable revenue growth while maintaining customer trust.