From Complexity to Clarity: Transforming SaaS Pricing for PE-Backed Tech Firm

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Case Study
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

Pricing-Transformation

Situation and Challenge

A PE-backed global SaaS provider of user-generated content (UGC) solutions faced significant challenges following multiple acquisitions:

  1. Integration of three disparate legacy pricing models
  2. Ineffective communication of integrated solution value propositions
  3. Revenue leakage and missed upselling/cross-selling opportunities
  4. Need for a unified, value-driven pricing strategy across diverse markets

Insight and Action​

Our comprehensive approach included:

  1. Implementing a simplified 3-tier SaaS package with clear upsell paths
  2. Redesigning the pricing architecture with:

   – Country-specific tiers

   – Usage-based scalers

   – Strategic add-ons

   – Segment-specific price differentiation

  1. Conducting in-depth value mapping and customer ROI modelling
  2. Developing price impact models to minimise renewal shocks
  3. Collaborating cross-functionally to align implementation strategies
  4. Creating a phased, ‘migrate-at-renewal’ roadmap for smooth transitions
Results and Impact

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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