Pricing is a critical aspect of product success, but small- and medium-sized businesses are often skeptical about leveraging pricing research for determining the optimal price for their products and services. Understanding product value from your customer’s perspective can help understand the different price points and gauge brand perception.
Given the importance of pricing in driving product value, it could be said that pricing research is a vital component of a company’s pricing strategy. Before conducting research, it is essential to keep in mind that every end-user group perceives price differently. A clear understanding and management of consumers’ reference prices will help strengthen your overall pricing strategy. Since various quantitative methods are available for measuring price sensitivity and assessing actual purchase behavior, it is essential to conduct in-depth pricing research focused on balancing pricing sensitives and market demand.
Pricing research is crucial from a business perspective because setting a price for your product without analyzing pricing trends and product performance is more like trying your luck at the roulette wheel, says a market research expert at Infiniti Research.
Leverage the power of research insights to power your pricing decisions. Contact us to know more about pricing research.
About the client
The client is a leading US-based SaaS firm that offers custom software solutions and cloud-based services. With over eight years of experience across multiple technology disciplines, the client is well-known for its innovative digital-first cloud solutions and custom software services covering various applications, including SaaS platforms and business operations software development.
The pricing challenge
The client faced several pricing challenges due to the highly competitive and dynamic operating environment. To address these issues, they wanted to redefine their approach to pricing and devise a robust strategy to drive sales.
The client’s product management team was looking to revamp the price structure of its flagship product by collaborating with Infiniti Research. They wanted to make changes to competitively price and optimize their product portfolio for attracting new customer groups while retaining existing customers.
Critical questions the client was looking to answer by collaborating with us included the following-
- What are the optimal price points for the flagship product?
- What is the recommended approach to feature mapping?
- What is the recommended, suitable pricing structure?
- At what price point does this product begin to seem expensive?
Many b2b companies undervalue the products and services and fail to capture sufficient value through their pricing strategies. We help our clients tackle pricing inefficiencies and drive growth by analyzing market trends and customer perception to identify the ideal price points- Request a free proposal to know more about our research services.
Pricing Research: Our approach
To help the client, we adopted a comprehensive three-pronged approach to pricing research. It involved conducting a conjoint analysis by leveraging advanced pricing research techniques. A survey panel consisting of key decision-makers and influencers responsible for evaluating and implementing SaaS products and solutions was created to understand the client’s products and customer value propositions.
The pricing research insights highlighted the need to identify the optimum price level for the product in terms of revenues and profits. It also helped reveal the different price points that could benefit the client and accelerate the acceptance of their product.
The most challenging part of a pricing research program is getting beyond the initial short-term value generation phase. We have the expertise required to support any pricing needs you may have – Request a free brochure to get started!
The research team at Infiniti Research identified key feature optimizations between product tiers and customer requirements. Our experts also gauged price sensitivities and modeled volume-based discounts that maximized sales and revenue. The research insights also helped the client build an optimal pricing strategy and adjust the prices for their Tier-1 and Tier-2 products, eventually driving sales and revenue.
Pricing has undoubtedly become a major focus area for businesses across industries. The complexities around pricing have unfolded many challenges that revolve around the need to increase returns by making better, research-backed pricing decisions. Though rapid technological advancements promise to enhance these efforts. What is often lacking is a comprehensive pricing research program that systematically integrates technology with the customers’ needs to sustain pricing excellence in the long term.
Our subject-matter experts work with clients to provide real-world insights that enable rapid growth through enhanced decision-making and help create a tailored approach that identifies, assesses, and answers all the questions on your timeline. Request more information if you’re looking to tackle pricing challenges and set optimal prices for your products.