From Complexity to Clarity: Transforming SaaS Pricing for PE-Backed Tech Firm
Industry: Software as a Service (SaaS)
Challenge: Complex Legacy Pricing Models
Solution: Strategic Pricing Transformation and Monetisation Optimisation
Technology: Power BI, Excel, Tableau, Salesforce CPQ
Situation and Challenge
A PE-backed global SaaS provider of user-generated content (UGC) solutions faced significant challenges following multiple acquisitions:
- Integration of three disparate legacy pricing models
- Ineffective communication of integrated solution value propositions
- Revenue leakage and missed upselling/cross-selling opportunities
- Need for a unified, value-driven pricing strategy across diverse markets
Insight and Action
Our comprehensive approach included:
- Implementing a simplified 3-tier SaaS package with clear upsell paths
- Redesigning the pricing architecture with:
– Country-specific tiers
– Usage-based scalers
– Strategic add-ons
– Segment-specific price differentiation
- Conducting in-depth value mapping and customer ROI modelling
- Developing price impact models to minimise renewal shocks
- Collaborating cross-functionally to align implementation strategies
- Creating a phased, ‘migrate-at-renewal’ roadmap for smooth transitions
The pricing transformation delivered substantial benefits:
– Projected additional $250M revenue growth over 5 years
– Simplified pricing model enhancing customer understanding and sales efficiency
– Improved alignment with customer value perceptions
– Enhanced upselling and cross-selling opportunities
– Minimised price shocks through gradual migration
– Streamlined sales and customer success processes
Key Achievements:
– Led end-to-end SaaS pricing transformation strategy
– Developed robust price impact models for informed decision-making
– Implemented Salesforce CPQ for automated product bundling and quoting
– Established pricing performance management framework with KPIs
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