Behaviourlab Pricing Optimsation – NatWest Case Study

Synthesis 

Sophisticated statistical modelling was applied to the experiment data to quantify how consumers’ choice of payment method changed in response to changes in pricing and repayment options. Demographic variables were included in this multivariate model to control for individual circumstances and identify groups most likely to use the BNPL product.  

This model output was calibrated with real-world market data to robustly forecast the BNPL product usage volumes. Finally, we overlaid financial data from NatWest to calculate the impact of the new BNPL product on margin as well as revenue.