Case Study - rmDATA GmbH

A pricing model for smooth SaaS transition, ensuring steady growth and customer satisfaction.

Customers' Starting Position

  • Offering: On-premise software for Geomatics, Information Management, Data Management, and Reality Capturing.
  • Lifecycle Phase: 18 months before launch.
  • Current Pricing Model: License-based, per-item pricing (unbundled), one-time purchase (no recurring revenues).
  • SaaS Transition: Initiating the shift from on-premise software to a SaaS-based solution.

Objektiv

  • Design a pricing model that appeals to various customer segments.
  • Monetize continuous product enhancements.
  • Drive growth and establish recurring revenue streams.
  • Facilitate smooth migration for existing customers.
  • Support an efficient and scalable sales process.

Pricing Journey

  • Team Formation: Established a pricing leadership team consisting of a pricing leader, product owners, sales representatives, and IT stakeholders.
  • Onboarding & Assessment: Conducted a one-hour onboarding module and a pricing assessment through a 10-minute questionnaire.
  • Design: Devolped a Pricing Model in a series of Pricing Sprints
    • with a value proposition covering over 100 elements (products, services, and features) with a clear articulation of customer value.
    • a  price structure of 2 bundles, 4 modules and 2 enhancements differentiated by products, services and features and  price metrics with a recussing revenues.
    • price points derived from value delivered, cost analysis, and strategic top-down targets.
    • varoius psychological price levers such as up-selling, cross-selling, and anchor pricing to optimize willingness to pay.
  • Transition Strategy: Developed a comprehensive playbook to facilitate the seamless transition of existing customers to the new SaaS model
  • Validation: Conducted six interviews with early adopters (friendly customers) to validate the new pricing model.

Outcome

  • Customer-Centric Pricing: A new model that addresses different customer segments, clearly communicates value, and ensures a fair share of value capture.
  • Validated Insights: Feedback from validation interviews was incorporated into the final pricing model and transition playbook.
  • Knowledge Transfer & Framework: Established a deep understanding of SaaS pricing and business models among internal stakeholders.
  • Rapid Execution: Achieved tangible results within 12 weeks, with 12 days of direct collaboration, ensuring an efficient and impactful transition.