Case Studies

Sharpening a fintech’s competitive edge through pricing strategy transformation

Posted by | Fuld & Company

Fuld & Company partnered with a PE-backed fintech company to refine its pricing strategy and strengthen its competitiveness. The competitive strategy included leveraging competitor benchmarking, customer insights, and financial modeling. Fuld delivered actionable recommendations that enabled the company to adopt value-based pricing, improve retention, and achieve sustained revenue growth. This transformation positioned the company as a leader in the evolving fintech market, driving loyalty and long-term success.

Objective

The fintech company aimed to address challenges with its outdated pricing model, which lagged competitors despite its robust multi-tier ecosystem. With a market increasingly shaped by cloud computing, AI integration, and open platforms, the company set out to:

  • Identify gaps in its pricing structure.
  • Transition to a value-based pricing approach aligned with customer needs and market trends.
  • Improve competitiveness and drive revenue growth as part of a comprehensive competitive strategy.

Solution

Fuld deployed an integrated research methodology, combining expert and customer interviews, desk research, and financial modeling, focused on three critical areas:

Competitor bench marking

  • Mapped the company’s pricing against industry leaders and emerging players as part of the competitive strategy.
  • Highlighted gaps in tiered, usage-based, and hybrid pricing strategies to identify areas for improvement.

Customer intelligence

  • Interviewed the company’s customers and competitors’ customers to uncover unmet needs and expectations.
  • Identified opportunities for value-based and outcome-based pricing to improve customer satisfaction and retention.

Scenario analysis

  • Modeled the financial impact of proposed pricing strategies, incorporating shifts in customer behavior and competitor pricing changes.
  • Evaluated potential revenue growth and retention improvements under different pricing scenarios, integral to the competitive strategy.

Outcome

Fuld’s analysis delivered transformative results, empowered the fintech company to realign its pricing strategy:

  • The company adopted value-based and usage-based pricing as part of its competitive strategy, increasing customer retention by 8%.
  • The new pricing strategy drove 17% annual revenue growth from existing products.
  • The company refined its offerings through competitor benchmarking, meeting market demands and strengthening its competitive position.

By addressing its critical pricing challenges, the company modernized its approach, that not only increased revenue but also strengthened customer loyalty and secured its position as a leader in the dynamic fintech industry. These efforts ensured sustained growth and set the foundation for long-term success as part of an effective competitive strategy.

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