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.
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 Client identified new product and pricing configurations to gain profitability, as well as to capture share from dissatisfied prospects seeking upgrades.
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.