Parity worked with an Australian software vendor to review a complex pricing structure that the company felt undervalued the product.
Before conducting a limited review of the cost structure, our team invested time talking with senior management to understand the existing pricing structure and customer base as well as where resources were being consumed.
Based on an analysis of the customer base, we segmented the data based on characteristics such as size, number of licences and the types of licences held.
Working in partnership with management, a number of alternative pricing structures were developed, which were then modelled and evaluated with regard to impact on:
- Total revenue
- The various customers segments
- Specific customers
A detailed report on the outcomes of the analysis was provided to senior management.
The client’s management used the insights from the analysis as a basis for overhauling their pricing strategy, with the realistic expectation of a 10% revenue increase.