Stories

The Challenge

A digital product service company with $20 million ARR and 100% NRR faced stagnant growth. Their existing pricing model was misaligned with the value delivered and didn't scale with usage. The packaging model lacked flexibility, hindering market expansion.

The Solution

We developed a comprehensive, and customer validated, value model. This model informed the redesign of package offerings and pricing strategy. A platform with an extension pattern was adopted, allowing customers to select functionalities tailored to their needs. A hybrid pricing model was introduced, consisting of a platform fee and a scaling fee based on usage. Compelling value stories were created for the sales and customer success teams.

The Outcome

The strategic overhaul led to a remarkable turnaround in growth:

• Renewed growth with accelerated new logo acquisition;
• Improved NRR by nearly ten percentage points, reflecting increased customer satisfaction and retention;
• Product innovation, leading to the development and market introduction of new products.

The Challenge

A leading business process software provider faced a critical challenge: transitioning their key software platform to the cloud without cannibalizing their existing multi-billion dollar business. Previous cloud transition attempts had limited success, making this transition crucial.

The Solution

A comprehensive value model was developed for each buyer persona, ensuring the solution met their specific needs. The strategy included:

• Packaging Model: Allowing buyers to test and develop on the platform without high costs, making it accessible to new users.

• Hybrid Pricing Model: Balancing initial affordability with long-term revenue growth, with costs scaling as usage increases.

The Outcome

The new cloud service exceeded first-quarter targets by 70%, becoming the foundation of the business. The innovative packaging and pricing models attracted new customers and facilitated the migration of on-premise customers to the cloud platform, generating higher revenue than the legacy on-premise pricing model. This transition solidified the company's market position and drove significant growth.

The Challenge

A customer data platform (CDP) provider struggled to demonstrate value to customers, leading to churn and limited upsell opportunities. Conventional metrics like NPS and C-Sat were seen as insufficient to justify pricing.

The Solution

A value model was built and validated through customer interviews. This model informed value stories used in customer business reviews.

The value model, pricing model, and value stories are managed on our platform, allowing real-time updates with customers.

The Outcome

The use of value stories has transformed customer success, shifting conversations to focus on created value. Agreed-upon metrics are now used and are expected to improve renewals and upsell.

The Challenge

A leading software company faced a critical challenge. Despite having a market-leading logistics and transportation management platform, the company was locked into a cost-plus pricing model, leading to intense price competition and declining profit margins.

The Solution

The company adopted a value-based pricing approach, including:

• Value Model Development: Understanding and quantifying benefits delivered to customers.
• New Packaging Approach: Restructuring the platform to offer tailored solutions.
• Hybrid Pricing Model: Adjusting margins based on value delivered and competitive situations.

The Outcome

By integrating cost-plus and value-based pricing, the company ensured it could meet internal financial requirements while capturing value delivered to customers. The new pricing strategy is set to roll out, positioning the company for improved profit margins and sustainable growth.

The Challenge

An innovative B2B software company, which pioneered a new space in the talent management category, faced slowing growth as new AI-driven competitors entered the market. The product architecture had become complex, confusing the sales team and buyers. The lack of a cohesive framework for positioning and pricing new features made cross-selling and upselling difficult.

The Solution

A comprehensive value model was developed and validated with customers. This informed a new packaging strategy, adopting a platform-with-extensions pattern. Key elements included:

• New Pricing Model: A basic platform fee scaled by customer size, with additional subscription and scaling fees for each module.
• Value Stories: Compelling stories for the sales team to communicate benefits and ROI.
• Centralized Hosting: The value model, use cases, pricing, and value stories are hosted on our platform.

The Outcome

The new packaging and pricing strategy has simplified the introduction of new functionalities and facilitated upselling. Full rollout is scheduled for Q3 2024, expected to reinvigorate growth and strengthen the company's competitive position.

The Challenge

A software company specializing in billing and payment solutions for the US healthcare market struggled to implement a new Good-Better-Best pricing model designed by a consulting firm.

The Solution

We designed a value-based communication plan to accelerate the adoption and acceptance of the new pricing model. This included:

• Customer Segmentation: Segmenting customers based on value delivered and value to the vendor.
• Tailored Migration Programs: Customized programs for each segment.
• Integrated Messaging: Rigorously tested value and price change messages.
• Sales Training: Specialized training on value-based selling and objection handling.

The Outcome

The migration program was a success, achieving the transition three months ahead of schedule with a 94% acceptance rate. This resulted in a 20% increase in revenues, demonstrating the effectiveness of our approach in driving revenue growth through well-executed pricing changes.