TechnologyCo

We helped a leading B2B SaaS company maximize market share by reconsidering pricing structure and innovating new product offerings. Read on to find out how.

The Situation

Our client was a retail analytics SAAS B2B company that excelled with an AI-based trend-predicting software. The company found that their competition was a combination of SAAS companies as well as consulting companies and companies that provided both services. The company was wondering how to maximize their market share by analyzing 4 different aspects of their business model and client approach. 

 

  1. An analysis on their target client group compared to their competitors and identifying any potential market entry opportunities that would differentiate them from competitors. 

  2. An analysis on pricing benchmarks in the retail analytics industry, especially how pricing differs based on software services or consulting services as well as how pricing scales based on the size of the project. 

  3. An analysis on the difference in capabilities of software vs consulting services and which types of clients prefer which type of service. 

  4. An analysis on the client’s customer relationship management compared to its competitors and especially how this relationship differs between software-based and consulting-based services. 

Our Approach

Working collaboratively with the CEO, Pareto deployed a competitive analysis to analyze the above 4 aspects of the client’s business model compared to its competitors in both the software-based and consulting-based services. 

 

  1. To analyze our client’s competitors’ target client groups we conducted research into public information to identify advertising trends aimed at specific client groups and/or identify the current clients they are working with. 

  2. To analyze pricing benchmarks we conducted phone interviews with competitors as well as competitor’s clients to identify their pricing ranges per service and size.

  3. To analyze the difference in capabilities of software vs consulting services we conducted research into our client’s competitors’ service offerings and target client groups.

  4. To analyze the customer relationship management strategy of our competitors, we conducted phone interviews with competitors as well as competitor’s clients to identify the metrics they use to measure their customer satisfaction and relationship.

The Results

Our recommendation to the CEO called for deploying 4 major initiatives based on the analysis we conducted in our above approach. 

  1. Diversify the client portfolio by targeting industries with underrepresentation of software services and customizing its existing software to maximize potential growth and mitigate industry-specific risk due to lack of diversification.

  2. Adding a consulting component to product offers will likely increase project revenue and attract a new type of client, charging clients based on size and project needs, and aiming at an identified price range. 

  3. Implementing consulting services to its offerings will provide more robust, personalized insights, attracting clients of larger sizes, and targeting clients looking for user experience solutions, digital design features and strategy. 

  4. Establishing three metrics and framework for measuring customer satisfaction and reevaluating the specificity of packages offered and automation operations can attract customers while decreasing the sale cycle.