ERP Company Increases ARPU by 35%

The Challenge

A mid-market ERP provider was struggling with commoditization pressure. Their pricing hadn't changed in 4 years, and they were losing deals to cheaper alternatives while their most valuable customers were undermonetized. Key challenges: - Single-tier pricing couldn't capture value from enterprise customers - Sales team had no guidance on discounting - Implementation costs weren't being recovered - Churn was increasing among smaller customers

Our Approach

We conducted a comprehensive pricing transformation: 1. CUSTOMER SEGMENTATION Analyzed usage data to identify distinct customer segments with different needs and willingness to pay. 2. VALUE-BASED PACKAGING Created three tiers aligned with customer segments: Essentials, Professional, and Enterprise. 3. IMPLEMENTATION PRICING Introduced professional services pricing to capture implementation value. 4. SALES ENABLEMENT Built pricing tools and trained sales team on value selling. 5. MIGRATION STRATEGY Designed grandfathering approach for existing customers.

Key Results

• 35% increase in ARPU within 12 months
• Reduced discounting by 22%