Product Portfolio Optimisation

Protecting the Core

200k+ customers • 1500+ employees • $600M+ Revenue

The client was on a transformation journey, moving from a product-led organization to one with the customer placed at the centre. To enable this, the client had several initiatives underway; including a new customer segment-led sales and service strategy, as well as a new customer experience led approach to workforce planning. Despite these, revenues and margins for their core proprietary assets were continuing to decline.

Business Impact

⊹ Reduction in digital acquisition headcount to save $4.2m
⊹ Proprietary asset decline slowed with a 4% improvement in the customer churn rate
⊹ Weighted average gross margin improvement of 2% on proprietary digital products
⊹ Successful stabilisation of the regional customer segment
⊹ Aligned the marketing spend of the business to key customer markets
⊹ Established a series of customer retention and acquisition experiments to rapidly swarm around the customer churn issue

Profitability Models

200k+ customers • 1500+ employees • $600M+ Revenue

The client had a well-established annual budget process, which drove much of the strategic decision making on product pricing, as well as the sales and service organization structure. Employing the traditional drivers of revenue (and expenses) in decision making, the client experienced profitability continue to decline, despite introducing initiatives focused on efficiencies and improving customer acquisition and retention.

Business Impact

⊹ Redesign of the Sales and Service strategy
⊹ Rebalance the profitability of the customer base, with a focus on nurturing profitable customers
⊹ Reduction in the number of loss-making customers and channels
⊹ Acquisition sales effort focused on customers with propensity to upsell
⊹ Pricing rationalisation of products
⊹ Pricing rationalisation of products