Telecommunications

A multi-billion dollar telecommunications company was facing increasing competition and commoditization in its core service business. In response, our client created a new, highly differentiated managed service offering. As the company prepared to launch the new service, significant internal debate continued about its appropriate pricing. Our client asked SPG to help price its new service consistent with the superior value it provided to customers while simplifying overly complicated pricing options. SPG worked closely with the client to quantify the value the service created, and crafted a simple, innovative pricing model that directly reflected its value. We also identified a number of customer segments with differing needs and usage patterns. As a result, we created a comprehensive offering menu that ranged from basic to very sophisticated with corresponding price metrics and value messages. To implement this pricing strategy, our team created sales tools and account plans that helped our client communicate the value of the new offering and capture its full price. In addition, we worked side by side with client sales teams to propose and close on four major accounts. This new offering continues to drive significant profits for our client and is helping them regain their leadership position.