VALUE BASED PRICING DEFINITION FOR NEW SERVICE

Digital advertising firm

Organization

Our client is a leading digital advertising company operating in a challenging context. Competition is hard and diverse, leading to pricing competition instead of added value realization. Additional challenge is brought by the fact that the targeted customers are not always familiar with the core of the services they need.

Type of project

Value-based pricing definition for a new segmented service offering.

The challenge

  • Ensure our client brings its new offering to the market with optimal pricing; i.e. a pricing that is not cost-plus driven but value-based and in sync with the needs and budget appetite for the targeted customers.
  • In addition, this new pricing strategy, model and governance is designed as such to step away from a traditional hard-selling and discounting model to solution- and relationship-selling.

What we did

  • Competitive scan on offering and pricing
  • Pricing strategy definition
  • Customer research on willingness-to-pay by service as well as cross-check with overall customer budget or spent
  • Calculation of price elasticity
  • Pricing governance design

The result

Supported an ambitious growth plan with the introduction of value-based pricing

hedera-adminValue-based pricing definition for a new segmented service offering [Advertising]