How We Helped Our Cloud SaaS Client Create A New Pricing Strategy
Aragon Research provides strategic advisory to our clients across the business and technology sector. One of our strengths is helping organizations with their go-to-market, product, and pricing strategy. Today, we're sharing an example of how we helped a technology provider in the Cloud SaaS software industry revamp their product strategy and pricing model. Read on to learn what their challenge was, how Aragon helped, and the results they achieved!
The Challenge: Pricing Wasn't Winning Large Enterprise Deals
While our client's product was strong and was successful at selling online subscriptions, it wasn't successful at reaching large enterprises. The client saw this as a major weakness as compared to its competitors, who were dominating the large enterprise marketshare. One of the problems Aragon identified was that the client did not have the appropriate pricing model to sell to large enterprises, and they also lacked the right strategy to tackle this potential client base.
Aragon Analysts Developed Tiered Pricing Model
Aragon analysts and the client kicked off solving this challenge by having a Professional Advisory Service day, and then had subsequent strategy inquiries. During these sessions, Aragon analysts assessed the client's current pricing strategy to uncover why the client was failing to win large enterprise deals. Analysts advised the client on the development of a tiered enterprise pricing model based on new product bundles. They also helped the client strategize different ways to position the product to appeal to large enterprises to supplement the new pricing model.
The Results: Client Acquired Large Enterprise Accounts
With support from Aragon analysts, the client not only established a new pricing model that was 2x than their old one, but they achieved a $1 million enterprise deal within just 30 days of launching their new pricing! Their new pricing strategy helped them to catch-up to their competition and even win deals against their competitors in large enterprises. The client also got the attention of new investors with multi-million dollar deals, which eventually led them to be acquired for $1.2 Billion. Talk about results!
With their new pricing strategy, our client was able to overachieve their goals. This is just one area Aragon helps our clients with. For more details of this case study, download the PDF.
We also invite you to check out more examples of how we've helped our clients in the past! If you're looking to improve an area of your business, don't hesitate to get in touch with us for a free consultation.