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