Industry
Software, Internet, Tech
Company Profile
- Leading provider of financial data and analytics software
- $200m annual revenue (total)
Situation and Objectives
- Align the product and pricing portfolio with the needs and preferences of client segments
- Redesign the pricing model to be simpler, encourage usage, and better match value delivered
- Introduce a global pricing model to better monetize multinational clients
Approach
- Based on intensive analysis of customer data, market survey and knowledge of behavioral economics, we redesigned the offer portfolio of the software platform
- Three offers (basic, comfort, premium) in a "good-better-best" logic were set up in a way that allowed fencing between the offers and made upselling more attractive
- Considering customer feedback and our pricing expertise, we simplified the price metric
Product Packaging Concept
Results
- The project resulted in Good-Better-Best packages to encourage upselling in key customer segments
- A two-component price structure was recommended to reduce the number of price metrics across products
Impact
- 18% in revenue
- Negligible attrition from forced migration
