Strategic Pricing

Pricing Strategy & Optimisation

200k+ customers • 1500+ employees • $600M+ Revenue

Our client was in the process of transforming their proprietary digital advertising product to offer substantially greater value to both customers and consumers, and as part of this product transformation the pricing and packaging strategy needed to be constructed. The pricing strategy had three guiding design principles: to be consumption driven, protect the value of the proprietary product and unbundle the legacy product within three years that was becoming redundant in today’s digital environment.

Business Impact

⊹ Developed a pricing strategy that is consumption driven and protects the value of the core product
⊹ Improved weighted average gross margin on proprietary digital product by 5%
⊹ Created a dynamic bundle discount model
⊹ Built a ROI calculator and alert trigger within the CRM to notify account managers when a customers offering is not delivering expected results to mitigate churn