“Since partnering with RevFixr, our MRR has increased significantly, churn has dropped noticeably, and customer engagement has improved.”
After years of rapid growth, the team at GeoGap arrived at a crossroads: continue focusing on high volume or move upmarket and service larger, more advanced customers. "We needed to make clear decisions around our packaging and pricing but lacked direction," said Michiel.
GeoGap enlisted RevFixr to help them decide on the best monetization strategy for the company and design the pricing and packaging to move upmarket.
"Their framework has given us a solid way of thinking about pricing and packaging that enables us to continue growing,” said Michiel Oosterveld, Co-Founder.
Impact TL;DR
+47% increased monthly recurring revenue in eight months;
Thanks to 65% increase in average revenue per user;
And 11% reduction in customer churn.
Bonus: overall customer engagement improved.
Aligning on the company vision
RevFixr was called in when GeoGap arrived at a crossroads: continue focusing on a high volume of customers or move upmarket and service larger, more advanced customers.
GeoGap had been growing steadily since its inception in 2016. This growth can mainly be attributed to its effective product-led growth strategy combined with an incredibly successful SEO strategy, putting them at the top of every Google page when looking for an address.
Yet all this success had one important downside: they didn't need to have daily conversations with customers. This blind spot made it much harder to optimize the monetization strategy. "We needed to make clear decisions around our packaging and pricing but lacked direction," said Michiel.
That's why GeoGap enlisted RevFixr to help them decide on the best monetization strategy for the company and design the pricing and packaging to move upmarket.
Map jobs-to-be-done with solutions
Before RevFixr could help improve the monetization strategy, we had to map out all the jobs-to-be-done GeoGap actually solves for its customers in our Value Map. "Together we mapped out our key user segments, the problems our software solves for each, and how each individual feature contributes to that."
Like most software companies, GeoGap had steadily been introducing more functionalities over the years. After completing the Value Map, it became abundantly clear that they were already solving more complex problems today than when they started out, but their pricing didn't reflect that.
With that conclusion in mind, we took another look at the data and RevFixr and GeoGap could make an immediate decision together on the commercial strategy.
"We chose to focus less on high volume and more on high-usage customers who stay longer and churn less." In other words: we decided to go upmarket.
Repackaging and pricing
Now that everyone agreed that GeoGap should move upmarket, it was time to update the pricing and packaging accordingly.
The main changes RevFixr introduced to the pricing and packaging of GeoGap:
We introduced a new plan to encompass the most complex jobs-to-be-done and tailored to the most advanced users.
The new plan comes at a price tag of nearly 4x the previously most expensive plan.
Updated the pricing and packaging of existing plans to better fit each audience.
Implemented our best practices (e.g., default to annual, introduced nudging, included limits, etc.)
"With RevFixr, we redefined our packaging through better segmentation and positioning rather than just pricing models."
Validate and iterate
Now that RevFixr redesigned the entire pricing and packaging for GeoGap, it was time to validate it. As always, we set out to validate with new customers before rolling it out to the existing base.
As previously mentioned, GeoGap didn't have daily conversations with customers. That meant we had to make several assumptions throughout the process and wanted to validate the most important ones separately. Luckily, due to the exceptional amount of web traffic GeoGap generates this became feasible.
"We ran bi-weekly experiments to test and refine our pricing and product pages." Not only did every price experiment result in more growth for GeoGap, RevFixr was able to attribute impact to every major change we introduced.
RevFixr's impact
“We finally made confident decisions, and saw immediate, measurable results. Since partnering with RevFixr, our MRR has increased significantly, churn has dropped noticeably, and customer engagement has improved.”
RevFixr has helped GeoGap decide on and adopt a new monetization strategy. That includes a complete overhaul of the pricing and packaging. The results include:
Monthly recurring revenue increased by more than 47% in eight months;
mainly due to a 65% increase in the average revenue per user;
and supported by an 11% reduction in customer churn.
Bonus: overall customer engagement improved.
