Pricewise

Price list change and migration of current services for the largest Slovak hosting provider

Websupport.sk - the biggest Slovak hosting provider - after 18 years of various pricing and pricing approaches, he decided to unite the current and new services into a single pricelist.

PROJECT GOAL:

Improve the offer and structure of webhosting pricing
Create a new, more attractive and more efficient price list
Design and create a strategy and a way to automatically migrate existing services to a new pricelist to reduce internal costs and innovation without loss and with the least sensational change for existing customers

Results

Instead of hundreds of historical price lists one
Basically lower complexity and associated maintenance and support costs
Adjusting the pricing that does not jeopardize the brand
Clearly positive business case and new upsell opportunities
Identified non-negligible leakage with realistic removal suggestion

Ľuboš Ľahký,

COO Chief Marketing Officer, Websupport

“Over the last 15 years, many of our nonsense, ballast and archaisms have accumulated in our price lists. We've been putting off cleaning up the menu for so long, until we're in a state that we didn't even know where to start. We turned to Pricewise, who led us through the process of unraveling, analyzing, setting up, planning, and communicating. It was very beneficial to look at our daily realities with their fresh look. The amount of data and combinations that have been taken into account is admirable. We look forward to the fact that cooperation with Pricewise does not end with a solution proposal, but continues with a long-term partnership.”

CHALLENGES & APPROACH

Phase 1: Simplify goals and create hypotheses

Understanding the client's situation, “perceiving” the current business situation during workshops and identifying key customer segments and their anticipated purchasing behavior
Creating a dynamic benchmarking of the Czech-Slovak market taking into account the parameters of the services offered
The result: a set of hypotheses about the impact of the offered product packages on customer behavior

Phase 2: Finding Answers in Data

Data analysis
Investigating hypotheses from the previous step and monitoring the development of the situation from a data perspective
Finding several sources of revenue leakage and suggesting ways to remove them
The result: principles that can be used to create a new pricing model

Phase 3: Design a new pricing model

Creating a prototype of a new pricing model by extensive iteration
The goal was to meet the following conditions:
- Pricing suitable for current market conditions
- Logical and easy to communicate to the customer
- It can deal with hundreds of different settings where existing customers worked
- The aim was to stay as close as possible to the original product price
- If we had to make any of the existing services more expensive, only in exchange for increasing their value

Stage 4: Creating a migration strategy

Creating a migration strategy algorithmically so that it can also be used to service properties that will be real at the time of migration itself (since the services will be migrated gradually)
The goal was to:
- Simple migration process
- As little change as possible for the customer
- The least lost customers thanks to strategically located discounts and special offers
- Quantifying the effect of the proposed changes in several different scenarios in terms of customer response

Phase 5: Implementation

Determining the procedure (which is in the hands of the client):
- Testing new services for new services
- Gradual migration of all services to new packages
Migration support and methodology for further changes in pricing
Expected result: positive business case, simplification of customer support