B2B FinTech Achieves Revenue Growth Through Bundled Subscription Pricing Model
Industry: Financial Services
Challenge: B2B Subscription Pricing Optimisation and Product Bundling
Solution: Pricing Strategy and Monetisation
Technology: MY SQL, Salesforce, Excel
Situation and Challenge
A global B2B FinTech and e-invoicing network, operating across 50 countries, sought to transition from a complex legacy pricing structure to a streamlined SaaS subscription model. The primary objectives were to enhance pricing transparency and simplify the pricing structure for both the business and its diverse customer base, which included buyers and over 230,000 global SME suppliers. The existing system’s lack of transparency led to operational inefficiencies and hindered the implementation of global price adjustments.
Insight and Action
Our approach encompassed:
- Conducting extensive process reviews and stakeholder interviews to identify value leakages across the pricing funnel.
- Analysing over 1,000 different supplier tariffs, revealing significant pricing inconsistencies and transparency issues.
- Modelling various options to align price with value, including multi-currency pricing, flexible product bundles, and discount tiering.
- Developing a price modelling tool and defining a discount framework to drive sales accountability and improve pricing transparency.
- Designing a simplified four-tier subscription-based pricing structure with controlled discounts and flexible bundles.
Our intervention delivered substantial benefits:
– Achieved a 4% revenue uplift in the first year of implementation.
– Reduced billing exceptions by 60%, significantly improving operational efficiency.
– Increased Average Revenue Per User (ARPU) by 15% in the first year.
– Simplified sales processes, enhancing spend predictability and transparency.
– Significantly reduced workload for finance and technology teams, eliminating downstream issues.
Key Achievements:
– Led pricing transformation, aligning with go-to-market and monetisation goals to drive revenue and margin growth.
– Conducted comprehensive research to map value drivers and identify margin leakages.
– Developed a pricing analytics model enabling micro-segmentation and scenario modelling.
– Presented a compelling business case for a volumetric, tiered bundling price model to replace legacy tariffs.
– Implemented a new discount structure, removing barriers to closing deals in emerging markets.
– Guided Salesforce CPQ implementation to streamline sales, renewal, and billing cycles.
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