A marketing technology (MarTech) company conducted a pricing and packaging diagnostic to better understand discounting levels for its products and buying behaviors of their customer base. Primary findings from the diagnostic were that extreme discounting was occurring for its core product and customers were not buying into the company’s product packages as they were currently structured.
Anecdotally, they were also hearing that their pricing was significantly higher than competitive offerings, and the deals they lost to competitors had been primarily due to price.
The MarTech company was looking for research to help them reset list prices and their overall packaging strategy for their core product. Specific questions they were looking to answer include:
How should we bundle features to create adoptable packages that have clear value, offer transparent options to buyers, and drive competitive differentiation?
We recommended a quantitative online survey that included a Kano Q-Sort exercise, a MaxDiff exercise, and a Gabor-Granger pricing exercise. Through the use of these three advanced analysis techniques, our client would be able to understand which products features were most and least important, and subsequently, how sensitive customers were to increases or decreases in price.