In this case study, read how Mike Migliore worked with a B2B SaaS business in the defence industry to optimise their proposition portfolio, re-launch their brand, and better manage the conversion funnel. The business enjoyed a doubling of revenues in the subsequent 12 months.
Context
Pricing and consumer demand are sources of endless fascination. This business had developed an outstanding open-sourced and analysis-enriched market intelligence SaaS product for use by OEMs, governments and buyers around the world. Their current price point was nearly 70% less than their nearest competitor, but after two years in market the firm was still struggling to move beyond the quarter million ARR mark, despite considerable market headroom and a product that was better than competitors.
Challenge
The business wanted to increase revenue by at least 50%. The CVG was brought on board to define the growth strategy, assess the proposition portfolio, brand messaging and marketing mix.
The work
CVG Proposition Audit:
- Product feature analysis – assessed the product features and ranked them based on consumer preference and usage data, working with the internal data and insight team to set up qualitative surveys
- Drivers and Barriers Review – Assessed proposition against value drivers for target market in B2B, scored and ranked
- Market Rivalry – Assessed competitors and key competitor product features; compared with client product to determine recommended product development roadmap, pricing and messaging.
- Market positioning and headroom forecast – CVG assessed the current and potential positioning of the client’s product and calculated its headroom
- Messaging – Audited the client’s customer-facing messaging versus competitor messaging
CVM Strategy
- Growth Forecast – CVG produced a growth forecast based on the product, pricing and messaging changes outlined in the growth strategy.
- Whale curves and LTV Analysis – Worked with internal teams to develop a view of cumulative profitability and customer LTV
- Actionability and Impact assessment – Developed a variety of avenues for growth and assessed them according to how easy they would be to realise and their impact once finished.
- Price rise – Developed the strategy behind a price increase and the communication plan for existing customers.
- New approaches – Introduced value-based tiering, lead scoring and volume/ARPU targets to drive new customer acquisition and retention.
- Introduction of lead development campaigns – worked with internal marketing team to launch lead development campaigns
- Introduction of content lead magnets – worked with internal marketing and editorial teams to develop content-based lead magnets for use online and offline
- Redefined customer lifecycle – focused on engagement and retention driving initiatives to reduce price sensitivity before the price rise
Messaging Relaunch
- New Message Portfolio - Redeveloped message hierarchy highlighting USPs and key desired benefits
Results
- Revenues doubled y.oy.
- New messaging in market within three months
- Existing customer price rise with 90% retention over 12 months