The organisation is in the transition from perpetual pricing (+ maintenance fees) towards an annual/subscription based pricing model. Understanding how to create the product packs, how to choose the pricing metrics, how to define the pricing plans and set the prices was a new domain. We supported the process and coached product and sales management in their 'software packaging' and 'pricing' journey.
How we helped
We supported the product and sales management with a proven process to define subscription based pricing models.
Step 1 : Assess your segmentation - who do we want to target ?
Step 2 : What is the next best alternative within the segment ?
Step 3 : What are the differentiating value drivers ?
Step 4 : Evaluate the different packaging options
Step 5 : Evaluate the optimal price metrics and price structure
Step 6 : Set the price level
Step 7 : Assess price elasticity
Step 8 : Finalizing the pricing plans (metrics and structure)