Business Solutions Software Provider
Enhanced Packaging Structure and Optimized Pricing to Strengthen Position in the Market
Implemented a new packaging structure and optimized pricing, leading to 10.3% revenue growth over 3 years
Optimizing Pricing & Packaging: A Data-Driven Approach to Software Growth
A $1B business solutions software provider restructured its packaging and pricing strategy, leading to a 10.3% revenue increase and stronger market positioning.
To maintain a competitive edge in the evolving software market, a $1B business solutions provider sought to streamline its offerings and optimize pricing. With multiple software solutions in play, inconsistent pricing, and discounting practices, the company faced challenges in effectively managing value perception and revenue growth. By implementing a differentiated pricing model, conducting market research, and refining its packaging structure, the company enhanced price realization and customer reception. Over three years, this strategic transformation resulted in a 10.3% revenue increase and a stronger, more sustainable pricing framework.
Explore More Case Studies
Situation
Fragmented Pricing & Packaging: Challenges in Software Monetization
Inconsistent pricing, discounting practices, and a lack of differentiation created obstacles to value capture and growth.
- Selling many software solutions and looking to reduce to a few bundles
- Organization has conducted consistent price increases with limited push back from customers, signaling strong value proposition, however, there has been limited differentiation
- Significant variation in prices for customer purchasing the same product bundle
- New customers often introduced at a steep discount, but pricing is increased over time; limited management on how and when discounting occurs
Approach
Strategic Packaging & Pricing: A Market-Driven Framework for Growth
Leveraging market intelligence, structured pricing models, and sales enablement to drive revenue and pricing efficiency.
- Built a differentiated pricing model based on identified meaningful customer and product attributes as a framework for price adjustments
- Conducted market research and analysis for packaging composition testing and feedback
- Created new packaging structure and optimized pricing based on market intelligence findings
- Developed and launched sales dashboard to arm reps with relevant information for renewals
- Launched measurement plan and reporting
Price Execution: Implementation
Established new tools and best practice processes to prepare teams for renewal discussions; equip them with advanced customer analysis and pricing guidance
Key Features
- Upcoming renewals forecasting
- Customer price increase targets
- Cross-sell recommendations
- Hierarchical reporting structure for VPs, Managers, and Account Executives
Training & Launch
- Revenue management and operating system training
- Hosted office hours to answer questions with the team
- Ongoing measurement & model tuning
- Account review tool tuning & refinement
Strategic Packaging Goal
Launch strategic packages to strengthen our position as market leaders and maximize lifetime value with customers
Impact
Realizing Pricing Power and Market Growth
Stronger packaging, targeted increases, and strategic execution drove measurable revenue gains
10.3%
Revenue growth for in-scope business over 3 years
Positive market reception for new strategic packaging
70% realization of price increase targets
You all have been incredible, and the impact you’re helping us make on pricing is tremendous. We appreciate not only the work that you are doing but the way you partner with us, too.
Vice President, Sales Strategy & Operations
Unlocking Competitive Advantage: How Competitive Intelligence Fuels Strategic Pricing
Learn how competitive intelligence drives informed pricing decisions and an effective pricing and commercial strategy
Price vs. Volume Tradeoff
Every business, whether selling products or services, faces a familiar dilemma: lower the price to attract more customers or maintain higher prices to protect profit margins.
Professional Services Overview
Does your pricing strategy capture your full value?
4 Steps to Profitably Navigate Tariffs and Mitigate Impact
Organizations impacted by tariffs must proactively implement critical pricing and operational strategies to protect profitability and achieve business goals.