Helping a Software Solutions Provider Identify an Optimal Pricing Structure Across Different Product Bundles

Helping a Software Solutions Provider Identify an Optimal Pricing Structure Across Different Product Bundles

Aug 28, 2019
Aug 28, 2019

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

Featured in Information Week: Get Ready for Software 2.0
28 Mar, 2024
Joe Anderson, Associate Director at Stax, expands upon Software 2.0, a new type of software that, according to its creator, Andrej Karpathy, “is written in [a] much more abstract, human-unfriendly language".
25 Mar, 2024
Stax recently provided support for LLR Partner and FTV Capital on the merger between ParkHub and JustPark. Learn more.
Trash to Treasure: Investing in the Waste Management & Recycling Industry
By Joel Slater & Sam McCabe 22 Mar, 2024
Stax experts Joel Slater and Sam McCabe share their insight on the market and value chain for waste management/recycling and how to approach the investment landscape.
Featured in Pitchbook: Vince Zosa's
By Vince Zosa 18 Mar, 2024
Featured in Pitchbook, "Unpacking the Rule of 40" by Stax Managing Director Vince Zosa discusses growth levers to outperform the metric. Read more.
13 Mar, 2024
Stax Managing Director Phil Dunne shared his thoughts with Electrical Apparatus, a digital magazine, about the future of EVs. Read more.
Rise of Shelf Intelligence Solutions in Retail & CPG
By Samantha Pinkes 08 Mar, 2024
In the dynamic landscape of retail and consumer packaged goods (CPG), retailers and brands alike have been adopting increasingly sophisticated analytic tech stacks to optimize business operations. As a result, shelf intelligence solutions are emerging as a key area of interest. Shelf intelligence solutions can supplement and contextualize the insights offered by other layers of retail and CPG firm tech stacks. In addition, they provide granular, and in some cases, real-time insight on shelf activity and customer behaviors that can supplement other data and analytics solutions employed by both retailers and CPG brands. For example:
Show More
Share by: