NewGrowth Consulting, Inc. » Case Studies » Product Management

Case Studies

Product Management Benchmarking Study for Enterprise Software Go-to-Market Strategy for Services Group Software Brand and Pricing Research Benchmarking Research for Communications Solution

Sales and Marketing Market Segmentation Research Large Account Satisfaction Global Accounts Competitive Research

Channel Partners Channel Partner Research and Recruitment Partner Program Benchmarking Partner Training Performance Assessment Partner Program Validation

Software Brand and Pricing Research

Situation

A leading healthcare software and solution vendor was having difficulty selling to new customers. The sales force was concerned the pricing of key solutions were too high, especially against newer competitors; other executives believed pricing was in line with fully-featured competitors. Senior executives wanted to understand the role brand, features, pricing and price model played in shaping customer preference.

Solution

Based on meetings with sales, marketing, and product management executives, NewGrowth designed a two-part engagement to 1) gauge price competitiveness of the client's solutions against its key competitors and 2) understand customer solution requirements and how vendor preference was shaped by brand, solution features and approach to pricing.

NewGrowth used results from the pricing research to create an interactive model showing Total Cost of Ownership (TCO) of the client's and competitors' pricing for licenses, implementation and ongoing maintenance over a five-year period. Using input from the pricing research, NewGrowth fielded an online conjoint study to customer segments based on company size and job function to assess solution requirements, brand value, optimal pricing and pricing models for three of the client's leading solutions. NewGrowth used the findings from conjoint research to create a market simulator to test product concepts and pricing across 15+ customer segments.

Results

NewGrowth's research revealed the client's pricing and pricing model required several changes in order to be competitive with other leading firms. Senior management has since implemented new pricing and policies; the client's sales and marketing groups are using the TCO model and conjoint market simulator to inform bid pricing as well as segment-specific sales strategies. As a result, the client's solutions are now highly competitive against key rivals and the percentage of deals won has increased significantly.

NewGrowth's research is further helping the client to identify customer segments with strong growth potential, set priorities for product development and refine the company's go-to-market strategy.