Case Study
Aligning pricing and compensation to reduce churn for a commercial field service provider
A provider of commercial kitchen maintenance services faced high technician churn and inconsistent pricing practices.
The client needed to centralize pricing, strategize customer segmentation, and define technician compensation to increase retention.
They lacked centralized pricing and segmentation, relying on cost-plus methods for pricing methods without considering willingness to pay.
In addition, inconsistent guidelines for technician compensation contributed to high employee churn.

We evaluated current pricing and rates through financial modeling.
We conducted expert working sessions to define customer segmentation, studied technician compensation in relation to retention and service pricing, and validated value perception and willingness to pay through technician surveys.
We also determined discount structures for consistent pricing, designed a segmented pricing model, and identified the key drivers of church to define new guidelines.

The new pricing model aligned pricing and willingness to pay.
The new pricing structure improved business unit performance by 6.2%

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