Business problem

Commercial teams changed prices on instinct with no way to test the revenue impact before rollout.

Dataset

18 months of transaction-level pricing and volume data across 5 customer segments.

Methodology

• Estimated own- and cross-price elasticities per segment.
• Controlled for promotions and seasonality with fixed effects.
• Wrapped the model in a scenario simulator for commercial users.

Key findings

• Enterprise demand was almost inelastic below a 7% increase.
• SMB volume dropped sharply beyond a 4% increase.

Recommendations

• Apply differentiated price increases by segment.
• Re-estimate elasticities every two quarters.