A strong market position constrained by an inefficient sales model
Our client, a commodities data business, believed they were leaving money on the table through ineffective pricing.
Their data supported a diverse range of customer segments and use cases.
They had a strong in-going hypothesis that the level of value delivered (and hence, willingness- –to -pay) varied widely, but their pricing was not effective at capturing this.
As a result, they believed significant money was being left on the table, particularly for high value segments / use cases.
Furthermore, their API / machine-to-machine delivery offering was rapidly growing in popularity. Whilst this was effective at unlocking even higher value use cases, it was more challenging to price given the lack of visibility over usage.
Comprehensive sales audit as the catalyst for commercial transformation
Our team conducted extensive market research to deeply understand how customers were using our client’s data, and how this translated into differing levels of value and willingness to pay across segments and use cases.
We found the level of value (and hence, willingness to pay) varied significantly across customer segments, between use cases, and by delivery mechanism.
We were able to pinpoint the key dimensions along which willingness to pay differed, which we then translated into a structure pricing logic.
We combined this with detailed customer modelling and iterative workshops to design a new price model which better aligned price to value.
To enable a rapid roll-out, we built a customer-level migration plan and pricing calculator and conducted sales trainings on how to articulate and defend the new pricing.
A more efficient, value-driven sales model
Following the roll-out of the new pricing model, the business saw >10% ARR growth directly attributable to the changes.
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