Share
Stax Helped a Software Solutions Provider Identify an Optimal Pricing Structure Across Different Product Bundles
THE SITUATION
- A Corporate Client sought our assistance to understand the optimal pricing structure for different product bundles they offer.
- The key objectives were to validate the feasibility of transitioning their product sales—from a perpetual license model to a subscription based model, as well as to gain perspective on a role-based pricing structure so as to supply users with an appropriate set of features/modules while maximizing revenue per customer.
THE ASSIGNMENT
- Conjoint analysis—to identify preferences for feature bundles using trade-off scenarios.
- Van Westendorp price sensitivity meter—to discover price points for a role-based pricing strategy.
- Data collection—web survey which included a sample of firmwide and function specific IT decision makers and influencers across different contractor types and company size verticals, as well as existing customers and prospects.
THE BENEFITS
- The Client identified new product and pricing configurations to gain profitability, as well as to capture share from dissatisfied prospects seeking upgrades.
THE FINDING
- Our research revealed that perpetual license structures were widely used. However, subscription based licensing was emerging at the time, along with the preference for role-based licensing.
- The conjoint analysis revealed that a majority of decision makers were looking for a fully integrated solution with added features.
- Our research also revealed that the Client maintained a significantly higher net promoter score compared to major competitors, with flexibility and customization being its key points of differentiation.
- Additionally, through the price sensitivity test, we were able to determine role-based pricing for different users and discover additional ways to generate value from different offerings.
Read More
Stax is pleased to welcome Andrew Keller to the London office as a Director. Andrew will oversee the technology market coverage for U.K. and EMEA. Click to learn more.
Marissa Licursi, Senior Manager at Stax, has recently been honored by Consulting Magazine as one of 2024's Rising Stars of the Profession for her Excellence in Client Service. Read more.
In this three part series, Stax experts Athan Siah and Harry Stuart dive into customer closeness and how investors can develop insight into participant objectives when assessing B2B event organizers. Read more.
A diversifying U.S. population and consumer preferences have spurred the growth of international foods in the U.S. market. Stax Associate Director Shoaa Ansari highlights changing trends and demand in the market. Learn more.
Stax experts Marc Malott and Athul Ravunniarath share Stax's experience in evaluating clients AI integration efforts, as well as several key areas SaaS companies can benefit from AI. Learn more.
The increasing number of EVs, alongside tech advancements and government programs, has led to a surge in popularity for EVs with drivers (and investors). Click to learn more.