How we helped this B2B SaaS client increase CLV by +11%

Business Problem(s)

Emotive.io, a leading conversational SMS marketing platform, was experiencing strong growth but saw signals that their existing pricing model was limiting revenue potential. While acquisition was healthy, customer expansion was not keeping pace—and any effort to adjust pricing came with concerns about churn, particularly among high-value clients.

The marketing and product teams needed a more precise understanding of customer value and pricing elasticity to design a structure that would drive sustainable growth without sacrificing retention.

 What We Did

Propelytics partnered with Emotive.io’s Marketing and Product teams to develop a data-driven pricing framework. Our approach included:

• Customer Segmentation by Value and Sensitivity: We used advanced clustering techniques and behavioral data to group customers by usage, spend patterns, and sensitivity to pricing changes.
• Elasticity Modeling: We built predictive models to simulate how different pricing tiers and feature bundles would impact CLV and churn, enabling us to stress-test multiple scenarios before rollout.
• Margin-Based Tier Design: We recommended new pricing tiers aligned with value delivered, using marginal cost and value-based pricing principles to ensure each segment paid in proportion to their return.
• A/B Testing & Implementation Support: We supported stakeholder alignment sessions across Product, Sales, and Marketing, and guided A/B testing strategies to validate the impact in-market.
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Results

• Customer Lifetime Value (CLV) increased by 11%

• Churn remained flat over a 12-month period, demonstrating that the new pricing model aligned well with customer value perception

• Improved alignment between product usage and revenue generation, leading to more effective upsell strategies and better forecasting