Energy B2B pricing strategies

THE CHALLENGE

Our client provides information and analysis on the energy markets to buyers and sellers of real and financial assets. Their current offering was on a product by product basis but there was potential to change how this was packaged by market segment. And current pricing was on a per user basis offering potential to change pricing structure by market segment.

OUR SOLUTION

Approach:
Reviewed effectiveness of current model based on sales data, usage data and stakeholder interviews.
Constructed alternative commercial models and scored them against Pearson Ham's framework.
Shared models and scores in client workshop and agreed which models to take forward.

Key insights:
The usage of the most valuable product component was not aligned with price paid.
No structured process to up-sell customers to more products/ higher packages or downgrade clients to retain their business.
Variation in client needs by segment was not reflected in packages offered.

RESULTS

Delivered description of new commercial model that addressed limitations of current model. Forecast annual benefit of $1.5m from successfully implementing new model.