Financial Services

A B2B financial services company came to SPG because it was feeling increasing price pressure in its mature market. Traditionally, the client raised prices for all customers in order to improve revenue, but with increasing competitive pressure, uniform price increases became more difficult to implement. Realizing that there is no one homogeneous marketplace, the SPG/client team created a fixed price/flexible offering pricing structure as a solution. This structure allowed the client to create bundling options to customers who were willing to pay for value, and unbundled options for customers that were willing to trade value for price. Additionally, the client more efficiently allocated resources to those customers who valued the services the most. The result was an increase in the client's gross margin by 2% in less than one year.