Unlocking new demand and exploring new market territories.
In a challenging market environment, a global satellite service provider needed support to win more deals and ensure adequate future margins.
As video platforms gradually reduced their reliance on satellites, our client struggled with overcapacity and faced a fierce price war in the market. Additionally, the company was not able to extract the best out of its value-added services. Therefore, the client sought our team’s expertise to unlock new demand, identify new markets, and successfully differentiate themselves from competition.
Advanced peer pricing is the key to success.
We identified pricing as a key lever to tackle our client’s current challenges. Our project team conducted an extensive number of interviews with customers as well as internal and external market experts to understand current market dynamics.
Following this, we worked together with our client to build a deal database and categorize previous deals into suitable groups. This made advanced statistical data simulation possible, leading to the derivation of new prices via systematic logic.
A pricing solution to win more deals and ensure adequate margins.
We developed a value-based pricing model by prioritizing specific customer segments and differentiating pricing strategy by target market. As a result, the price guidance became more refined, allowing for systematic differentiation between deals. Our client saw a 3.2 percent increase in ROS due to the new value-based peer pricing solution.
Additionally, we implemented decision support tools to empower sales to make performance-oriented pricing decisions, resulting in increased wins and better margins.
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