Data4, a Managed Service Provider (MSP) specializing in internet security services, was preparing to launch a new security proposition tailored specifically to the needs of Small and Medium-sized Enterprises (SMEs). Getting the packaging and pricing strategy right was seen as a critical success factor. Data4 traditionally used a cost-plus pricing model but recognized that this approach might leave money on the table. They approached us with a clear challenge: “Help us to price our new offering in such a way that growth and profitability is optimized right from the start.”

We applied our commercial and pricing expertise in IT Services and SaaS to guide Data4’s packaging and pricing strategy. Together with Data4, we defined which SME segments to target, based on value potential and willingness to pay. The approach combined several key elements:

• Market sizing to quantify the opportunity
• Customer segmentation to identify high-potential target groups
• Willingness-to-pay research to inform pricing potential across segments
• Packaging to align value to different segments and corresponding willingness to pay
• Pricing model selection to determine the best monetization strategy
• Value-based pricing to define optimal price points

By collaborating closely with Data4’s team, the project delivered two key outcomes:

• A customer-centric packaging structure aligned with customers’ needs and willingness to pay, offering an accessible entry-level package for smaller SMEs and more premium tiers for businesses with greater security needs.
• A win-win pricing model designed to scale optimally with customer value.

Conversion rates across all packages were healthy relative to industry standards, reflecting a well-calibrated balance between growth and profitability. Together witht the client, we estimated ~30% higher net profitability compared to a scenario in which a more cost+ approach to pricing would have been taken.