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Lou McErlean 5809 Brushy Creek Trail
Dallas, Texas 75252 972-571-0448
SUCCESS STORY: Effectively Pricing and Selling an Offering Based on Value, not Cost
SITUATION: Reap Marketing is a boutique digital agency specializing in eCommerce Conversion Rate Optimization. The primary offering was A/B and multivariate testing services to help clients increase order volume, decrease cart abandonment, and the like. Prior to my arrival as BizDev Director, Reap had priced its testing offerings based on staff person hours required to complete the work. SOLUTION: Recognizing that past Reap engagements had delivered significant increases for other eCommerce clients, I realized that Reap could increase its revenues of engagements by charging based on the value delivered, versus the cost of execution. ACTION: After creating a 3-tiered offering structure, I created presentation templates which allowed us to present our offerings based on the prospect’s projected ROI, rather than their out-of-pocket expenditures. We would get several data points from what prospects were doing currently, plug them into our calculations, and then make projections based on like engagements. RESULTS:
• Closed three new engagements within first three months. • Increased the pipeline by 800%.
• Created/Sold company’s first ever enterprise-level offering, increasing deal size by 300%.
