CASE STUDY
How a SaaS start-up simplified its proposition with Costovation
included services:
Related industry:
Objective
A start-up was an early leader in providing a critical service to enterprise HR departments, yet it found many companies reluctant to switch from traditional, Excel-based ways of performing the target activity. The firm asked New Markets to identify how it could provide a low-cost, simplified offering that could be sold without extensive customer support, aiming not to vanquish its direct rivals with this product but rather to convince customers to switch from Excel.
Approach
Interviewed 30 target customers to understand their Jobs to be Done and current approaches in detail, determining exactly what the new product had to do and what could be de-prioritized
Developed concepts to test with customers, evaluating not only the platform’s functionality but how it could be sold more simply in an enterprise setting, and how it could be supported cost-effectively
Built support within the company’s board and among investors for this new strategy, showing what specific customer types this would be a fit for and how the company could create a sustainable competitive advantage in this new, low-cost market
Impact
The new offering has been launched to enthusiastic customer reception, and it has powered new revenues without cannibalizing the company’s core, higher-priced offering.
