Situation:

A leading Contract Research Organization retained Kineticos to conduct an in-depth pricing analysis, which would influence a data-driven pricing strategy resulting in improved profitability through increased margins and win rates.

Process:

Kineticos first launched a customer pricing survey designed to serve 2 primary objectives.

  1. Identify key factors influencing willingness to pay for product development consulting services
  2. Measure customer’s perceptions of value delivered by the top 10 CROs, of which our client was included.

Kineticos supplemented the survey results with a series of interviews with key opinion leaders across a number of influential customer segments.

In parallel, Kineticos conducted a formal review and gap analysis of the current pricing strategy, which involved mapping the client’s current state against customer expectations and competitor strategies.

Given the need to pair optimal pricing strategies with an effective proposal development and sales process, Kineticos also evaluated the current proposal development and delivery methodologies. The objective of this review was to ensure the current proposal template and development process effectively communicated the value, justifying the associated price.

Outcome:

Through the assessment, Kineticos identified that the client was perceived as a premium service provider by most key customer segments while pricing near the bottom of the market. The analysis provided the data and confidence necessary to implement a tiered pricing strategy that immediately realigned their pricing with their market value. Subsequently, the company increased their hourly bill rates by up to 40% while maintaining win rates in all measured services and increasing win rates in select expert areas.