How have we helped LiveSession boost MRR by 30% through scenario planning and analytics?

Client: LiveSession is a fantastic analytics software that helps you analyze users'' behavior, improve UX, find bugs, and increase conversion rates using session replays and event-based product analytics. We know many tools, but we reckon it is one of the best in this market segment. There are session replays, click and heat maps, and funnels, among its core features. The UX is outstanding, and customer support is best-in-class.

Situation: LiveSession approached Valueships with their thorough pricing change plan. They requested us to critically assess the new plan to ensure that we could implement it. It was also critical to double down on the safety of pricing changes. Being good, UX-friendly, and functional product didn't translate to the MRR potential of the company. The initial hypothesis suggested that the value was substantially higher than the asking price. However, LiveSession operates in a highly competitive product category, so the challenge was not trivial. 

Goal: The main objective was to positively impact ARPU with changes in service pricing without losing the competitive positioning.

Approach: We began with a deep dive into internal client data and competition scan. We have analyzed the competitive space. LiveSession has a very good NPS  compared to the overall perceived value ratio and ROI payback of the product. We use it at Valueships as a strong indicator of the potential price increase. 

By applying advanced statistical methods to analyze customers' distribution and segments, we discovered that one of the plans was cannibalizing a more expensive one. In other words, a substantial share of the demand base was paying a lower price while they should be on an upper plan.

The Valueships team proposed a set of new recommendations and tweaks on the pricing page, which were implemented a few weeks after we finished our analyses.

Also, to ensure the safety of a company and increase organizational confidence. We have run multiple scenario analyses.

Results: 30% MRR increase as a consequence of price optimization and an 87% migration rate from one of the cheapest plans to the more expensive higher one. The additional churn rate remained close to 0%.

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Client's opinion: Kamil Drążkiewicz, CEO of LiveSession: "What we have introduced with your help had positive impact. Increasing the prices and migrating some customers to higher plans accounts for roughly 30% of the MRR increase. The migration rate of 87% indicates that the previous price of our cheapest plan was not in line with the value that customers see. We have increased the ARPU and managed to add some more MRR at the new price. We aim to abandon the lowest plan as we see we can position ourselves as a more premium product. We will do more pricing initiatives in the future. Thank you for your work – your analyses helped me make the right decisions regarding pricing and client up-sell."