VHA, a $450 million healthcare services company, had lost customers to new competitors that entered the market and provided a more a la carte pricing and packaging model. PDIConsultants was hired to work with VHA’s VP of Strategy and VP of Finance to develop and test new pricing models. After evaluating the impact of bundled pricing on other industries including cable TV, we built an analytics model that allowed us to test pricing options with customers. The analysis tool allowed us to play what if scenarios to understand the customers propensity to purchase more services under a la carte packaging and pricing. We combined this tool with primary research to evaluate revenue changes at a customer level and across all customers.
Results: Uncovered the key drivers to pricing and packaging that allowed VHA to create and deploy a new model that better met customer needs while growing overall revenue.