Case Study
Moving to a Subscription Based Model to Reveal Potential Revenue
As innovation and connected technology begin to disrupt mature industries pricing strategies will need to evolve to manage new cost structures. The client traditionally sold hardware and software products separately, which were add-ons in conjunction with large capital equipment purchases. The company continued to improve their technology however customers, who had perpetual licenses, were receiving software upgrades for free. The client wanted to know whether a subscription pricing model would be embraced by their customers. Pricing Solutions team developed recommendations for offer structure and implementation plan that revealed a potential 18% increase in revenue per customer over 4 years. The Challenge The client had upgraded their current hardware and software te