TSIA Research Journeys is our initiative to solve today's top problems plaguing the tech industry. Join us as we launch discovery research, build practical theories, and deliver industry-validated, board-ready insights designed to empower every tech company.

Is your pricing strategy holding you back? The technology industry is rapidly evolving, and traditional pricing models like cost-plus and market-based approaches are no longer enough to stay competitive. As customer expectations grow and businesses shift, relying on outdated pricing strategies can put your company at a disadvantage. The stakes are high—businesses that don’t adapt risk losing customers, revenue, and their place in the market.

To navigate this transformation, you must rethink how you price your offerings. This is where our Research Journey comes in. We’re diving deep into the industry’s shift toward value-based and outcome-based pricing models, providing insights to help you better align your strategies with value delivered to customers. By participating in this journey, you’ll gain access to frameworks and best practices that can empower your business to thrive in a dynamic market.

Are you ready to redefine your pricing strategy and secure your competitive edge? Join this Research Journey today to get started.

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Defining the Problem: Traditional Pricing Models No Longer Fit the Bill

Tech organizations should be investigating the move away from traditional methods like cost-plus and market-based approaches. This change is driven by the need to transform offer delivery and sales strategies to meet evolving customer expectations and business realities. The current reliance on cost-plus models, which involve calculating prices based on production costs plus margin, no longer effectively capture customer value.

For technology companies, this outdated approach poses several risks:

• Loss of market share: As the industry transitions to value-based pricing models, companies that fail to adapt risk losing customers to competitors who can better align their pricing with the value delivered.
• Reduced revenue growth: Businesses may struggle to demonstrate ongoing value to their customers without adopting new pricing strategies. This is especially critical in a subscription-based world, where value propositions must be clearly communicated and consistently delivered.
• Increased competitive pressure: Companies that do not align their pricing with customer outcomes may be unable to compete effectively. Customers increasingly expect suppliers to take responsibility for their success, and companies that cannot show tangible value may lose their competitive edge.

Why Does It Need Solving?

The urgency of solving this problem is palpable. Shifts in customer buying behavior and suppliers' increased accountability for customer success are reshaping the landscape. If technology companies don't transition to value-based or outcome-based pricing, they risk losing customers and their position in the market.

The high stakes affect revenue, market share, and the organization's financial health. In extreme cases, failure to adapt could lead to budget cuts and layoffs, particularly in roles like customer success—where understanding and pricing the value delivered is crucial.

This research aims to help technology companies navigate this pricing evolution, offering insights that can enhance monetization strategies and improve overall business success. By shifting to value-based pricing models, businesses can better capture the actual value of their offerings, ensuring long-term growth and sustainability in an increasingly competitive market.

Unveiling the Research Methodology

We have designed a comprehensive research study to tackle the challenges of outdated pricing models and help technology companies transition to value-based and outcome-based pricing. This study integrates multiple methods to gather data, share insights, and refine industry best practices.

How We Conduct the Research

Our approach begins with an educational webinar outlining the core challenges of current pricing strategies. During this session, participants are invited to complete a survey, which is crucial for collecting data and generating insights. This integrated approach allows us to educate industry professionals while gathering data to inform our research.

The survey will capture various perspectives, including those from companies at different stages of their pricing evolution. We want to involve a diverse sample of traditional technology companies transitioning from hardware to service-based models and cloud-native businesses. This diversity ensures our findings are applicable across the entire technology landscape.

After the webinar, participants will receive a detailed report highlighting the survey findings. This report will provide valuable insights into industry trends and deliver actionable recommendations for improving pricing strategies.

What Participants Will Gain

Every participant in this research journey will receive a tailored readout of the findings. This includes a comprehensive report that justifies the time invested in the survey and webinar. Beyond the immediate insights, participants will gain access to updated TSIA frameworks that are foundational for shaping pricing strategies. These frameworks, refined over the past several years, will be pivotal in guiding companies toward more profitable pricing models.

Companies with the most mature pricing capabilities can be recognized as industry leaders. We will highlight best practices within confidentiality guidelines, offering participants a chance to showcase their advanced strategies to the broader community.

The End Goal

The ultimate goal of this research is to help technology companies enhance their service monetization strategies. By participating, companies will better understand how to price their offerings effectively. The aim is to equip businesses with the tools and insights to thrive in outcome-based markets, ensuring long-term growth and success.

This Research Journey is not just for a specific subset of the industry; it is designed for all technology companies, regardless of where they are in their transformation journey. Whether you're a traditional company expanding into service-based models or a cloud-native business refining your strategies, this research offers valuable insights to help you stay competitive and profitable in a rapidly changing market. No matter your background or current situation, your participation is not only welcome but crucial to the success of this research.

Your Key Takeaways

• Evolving pricing strategies are essential for success: Traditional cost-plus and market-based pricing models no longer align with customer expectations. Companies that don't adopt value-based or outcome-based pricing risk losing customers, revenue, and market share to competitors who can better communicate and deliver ongoing value.
• Participating in this Research Journey provides tangible benefits: Participants will receive customized insights and updated frameworks to improve their pricing strategies. These resources will help companies capture the value they deliver more accurately and position themselves as industry leaders.
• The goal is long-term growth and competitive advantage: This Research Journey will equip businesses with the tools and insights needed to succeed in the evolving technology market. By refining their pricing models, companies can enhance their monetization strategies, ensuring sustained growth and a stronger competitive position in outcome-based markets.

‍This is an ongoing Research Journey with updates happening in real time. Click here to experience this Research Journey in full.