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
As prices decline and cost pressures rise, Oil & Gas operators are doubling down on digital tools to stay competitive. Read about Stax Managing Director Palash Misra's insights here.
Stax Director Andrew Keller shares eight invaluable questions that private equity investors need to ask before considering an investment in the Maritime market. Click here to read more.
Nine critical insights shaping private equity in 2025 from the 13th Annual PE New York Forum—including strategic exits, secondaries, sector shifts, AI integration, and a growing urgency to act in uncertain times. Click to learn more.
As investors seek strong conviction on near term value creation during due diligence, Vince Zosa shares 5 key value levers that top-performing investors are scrutinizing from day one. Read more.
Stax CEO Jayson Traxler shares why leading PE firms are shifting from financial engineering to value creation—and how Stax partners with investors to drive lasting impact. Read more.
Stax congratulates Tenzing on its recent strategic investment in ScreenCloud, a global leader in cloud digital signage solutions. Click here to read more about the deal.