Data-Driven Tariff Optimisation for SMB Business Retention

1. Context

This project aimed to reduce high churn rates among mid-market business customers by optimising B2B tariff structures. The existing tariffs required extensive customisation, causing delays in deal approvals and lost business to competitors. As a Propositions and Pricing Manager, my objective was to develop a modular tariff structure that streamlined approval processes, enhanced profitability, and maintained customer satisfaction.

2. Challenge

• Customisation bottlenecks: Tariffs lacked modularity, requiring case-by-case Finance approvals, which delayed deals.
• Data complexity: Sales and deal data was scattered across spreadsheets, making analysis time-consuming.
• Organisational and regulatory shifts: Leadership changes and regulatory project priorities affected decision-making and resource allocation.
• Stakeholder alignment: Securing buy-in from Sales and Finance teams while managing ongoing organisational changes.

3. Approach

• Travelled to various cities to meet account managers working with mid-market clients (10–200 employees) and understand their challenges firsthand.
• Manually analysed 15–20 sales deals (both successful and unsuccessful) to identify patterns and pain points.
• Conducted in-depth data analysis once full sales finance data became available to validate findings.
• Worked closely with Finance to design a modular tariff structure, allowing tariffs to be built flexibly like LEGO, reducing the need for individual deal customisation.
• Developed the solution in two phases: an immediate tactical fix for urgent issues and a longer-term strategic plan for broader transformation.

4. Role & Achievements

• Building strong relationships with sales teams, incorporating their insights into the solution.
• Conducting detailed data analysis to align insights with Sales and Finance input.
• Successfully implementing a tactical solution that addressed immediate bottlenecks.
• Although organisational shifts deprioritised the full modular solution, I ensured the tactical improvements were fully implemented and transitioned the project seamlessly to the propositions and pricing team. The insights and groundwork laid the foundation for future tariff enhancements.

5. Results

The tactical solution improved alignment between Sales and Pricing, reducing deal approval delays and increasing efficiency. While the full modular solution was not implemented due to organisational shifts, the project demonstrated significant potential for long-term impact and received strong support from sales teams for its customer-focused approach.