Case Study: Small Business

Customer Research Pricing Case Study

Business Case

A pricing study

The Business Issue

With the release of a new suite of products the client made a significant revamp of its product line-up. They decided to offer products as subscriptions in addition to the currently tried and tested perpetual cost. The key research questions to be answered included:

How to minimize complexity and to introduce ‘business simplicity’ to their customers

How to provide clear product options for each customer segment defined by the company

Shift from a “multiple” product/transactions-oriented relationship with customers to a single solution-oriented relationship

To aggressively shift to recurring revenues and to increase it as a percentage of total revenues

New customer acquisition

How Did SDC Consulting Support This Research Study?

SDC supported all elements of the study design and execution which involved a complex framework with a vast ingredient mix and multiple high level stake holders. Method of data collection was an online survey with a combination of an in-house database of existing customers and vendor sample. The core component of the survey was a discrete choice exercise with varying prices showcasing products with subscriptions and perpetual costs. SDC worked closely with the client to carefully craft all inputs into the study.

The resulting data was used to estimate product demand curves that were the key elements of an Excel-based simulation model. The successful study resulted in insightful actionable recommendations to product mix and price movement. Optimal scenarios were recommended using the results, built along with levers which provided the client flexibility to build out preferred scenarios.