RECENT CASE: Pricing and bundling for a healthcare information services business

The Situation
  • A client with incomplete insight into pricing dynamics asked Stax to create a set of analytic tools around pricing opportunities and impact projection.

The Assignment
  • Stax unified data across multiple products, delivery modes, client entities and sites to evaluate pricing and profitability at a client level:

  • Integration and cleaning of data across multiple sources and acquired companies.​
  • Unification of data at a customer level.
  • In-depth analysis to provide visibility into customer pricing and profitability and variation in both.
The Benefits
  • Client aggressively pursued conversion, and Stax tracked conversion and impact.​

  • Client achieved significant revenue and profit growth.

  • Stax provided client with KPI and impact tracking to support successful exit process.

The Finding
  • Stax identified significant variation in pricing across customers and relative to list pricing and identified opportunities for pricing gain.

  • Stax evaluated conversion to a new pricing structure, and quantified its impact on existing adopters, as well as projecting impact on the rest of the customer base.

  • Stax identified an opportunity for 19% per-customer revenue lift and significant per-customer profitability increase.​

  • Our analytics conclusively demonstrated that pricing conversion, while lowering unit price, dramatically increased volume and overall contract revenue.
  • Our client aggressively pursued conversion, resulting in strong per-customer revenue growth, and demonstrating future runway for additional conversions.