Optimizing pricing strategy to increase revenue and customer lifetime value

Master Data Management SaaS

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  • 30% increase in revenue
  • 40% rise in premium signups
  • Improved segmentation


Optimizing pricing strategy to increase revenue and customer lifetime value

A master data management software sought to optimize its pricing strategy to increase revenue and improve customer segmentation. They aimed to achieve this through a data-driven dynamic pricing model, tiered pricing plans, and strategies for converting freemium users to premium subscribers.


  • Develop and implement a dynamic pricing model to increase revenue

  • Analyze the impact of tiered pricing plans on customer segmentation and LTV

  • Develop strategies to convert freemium users into premium subscribers


Dynamic Pricing Model

DataDab's team of pricing experts and data analysts collaborated to develop a data-driven dynamic pricing model for Capella:

Data collection

DataDab gathered historical data on customer demographics, usage patterns, and purchasing behavior, as well as market trends and competitor pricing.

Pricing algorithm

Using the collected data, we developed a sophisticated pricing algorithm that considered customer segments, market conditions, and product usage to set optimal pricing.

Implementation & monitoring

We helped Capella implement the dynamic pricing model and closely monitored its performance, making adjustments as necessary to ensure maximum revenue generation.

Tiered Pricing Analysis

DataDab thoroughly analyzed the potential impact of introducing tiered pricing plans for Capella's SaaS platform:

Customer segmentation

DataDab identified distinct customer segments within Capella's user base, considering factors such as company size, industry, and feature usage.

Pricing plan design

DataDab developed tiered pricing plans tailored to each customer segment's specific needs and budgets, ensuring optimal value for both Capella and its clients.

Performance tracking

DataDab tracked the performance of the new tiered pricing plans, analyzing their impact on customer segmentation, LTV, and overall revenue.

Freemium to Premium Conversion

We developed and executed strategies to convert freemium users to premium subscribers:

In-app messaging

Designed targeted in-app messages highlighting the benefits of premium features and offering limited-time promotions to incentivize freemium users to upgrade.

Email marketing campaigns

Created personalized email campaigns showcasing premium features, sharing customer success stories, and offering exclusive discounts to freemium users.

Content marketing

We developed engaging content, such as blog posts, case studies, and webinars, to demonstrate the value of premium features and attract freemium users to upgrade.


Increased Revenue and Premium Sign-ups

Capella experienced significant improvements in its key performance metrics:

30% increase in revenue

The implementation of the dynamic pricing model led to a 30% increase in overall revenue.

Improved customer segmentation

Tiered pricing plans resulted in better customer segmentation, allowing Capella to tailor its offerings effectively.

40% increase in premium sign-ups

The strategies developed by DataDab to convert freemium users to premium subscribers resulted in a 40% increase in premium sign-ups.

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Their data-driven approach and tailored strategies have not only increased our revenue but also improved our customer segmentation and conversion rates.

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