Opportunity

The client faced a clear opportunity to shift from uniform pricing to a value-based approach that better reflected customer segmentation and competitive dynamics. Their current model didn’t align with market realities, limiting revenue potential.

Evolving customer expectations and increased competition from free alternatives highlighted the need for more differentiated and innovative strategies. Additionally, the absence of structured discounting and upsell mechanisms restricted the client’s ability to influence purchasing behavior and capture full value from its offering portfolio.

Challenges

The client faced several structural and operational hurdles that limited pricing effectiveness:

• Inefficient pricing practices: Price changes were historically applied uniformly across products, without factoring in customer segments or value differentiation
• Siloed product teams: Disconnected decision-making across product lines led to inconsistent pricing strategies and a higher risk of customer downgrades
• Limited competitive insight: The client lacked reliable data on how their offerings compared to competitors, making it difficult to position pricing effectively
• Lack of data-driven decision-making: Pricing, discounting, and upsell strategies were not grounded in customer or market data, reducing their impact and adaptability

Outcomes

Across all initiatives, the projected incremental revenue uplift is £14m–£20m, representing a 4.3%–5.9% increase. A targeted upsell strategy identified a ‘hitlist’ of over 4,000 customers, with a £3m–£5m upsell opportunity.

A new pricing model was developed using validated customer value and competitive benchmarks, enabling more strategic and differentiated pricing. The next pricing round included tailored increases, averaging 6.6% under a moderate scenario and 7.6% under a stretch scenario. A structured discounting framework was introduced, aligned to product and customer value tiers.