Question on pricing strategy for B2B2C and D2C company

RRA·Nov 11, 2021

Hello, I'm looking for advice on pricing strategy for an early-stage company that has a B2B2C and D2C option. In other words, we have an offering that we sell to companies to offer as an employee benefit, but we also have the same offering that's available for purchase directly by consumers.

I'm familiar with pricing architecture and analyses, including value-based pricing, monadic analysis, conjoint analysis, and the Van Westendrop analysis. But my main concern is around not upsetting B2B partners by offering a D2C option at a lower, more consumer-friendly price point. Do companies in this position typically vary the features offered or is it possible to offer the same product at different price points to these respective audiences?

For background, we started D2C, but then moved into B2B2C where we've gotten a good amount of traction. And now, we'd like to revisit a D2C offering. Our product is a digital product, so it would be possible to vary the features offered to different segments.

Also as a bonus question: is anyone familiar with software for conducting a conjoint analysis that doesn't cost thousands of dollars?

TLC·Nov 12, 2021

Don’t know the answers to these but very interested in the replies. Great questions.

VeronikaL·Nov 13, 2021

It is a valid concern @beckyallen; we are living through a very similar product trajectory: first proven the value as D2C offering and now our product is included as a covered benefit in many group benefits plans and L&H insurance companies provide reimbursement -i.e. it is a B2B2C solution. Most enterprise contracts include "the most favoured nation" price clause, and whatever price is listed on the Internet is effectively the market price. We do charge a bit extra for certain enterprise features but a general expectation from the group benefits sector is to receive an identical product with a corporate discount. We now offer programs within the private/sponsored market places that are priced PMPM.... not yet too clear if this strategy will take off. Would love to hear more about this topic!

RRA·Nov 15, 2021

Thanks for your reply @VeronikaL! When you say you now offer programs in the private / sponsored market places, what does that mean?

VeronikaL·Nov 18, 2021

Many organizations in group benefits have digital marketplaces with bundles of products available only to members - i.e. an individual consumer can access them only when logged in as a verified plan member.