From pricing advice to strategic consulting. How did we advise Brand24 to boost ARPU by 41%
Managing Partner, Founder Valueships
July 18, 2023
Brand24 is a publicly-traded company offering real-time social media monitoring and analytics. It is designed to keep track of online conversations about a brand and its products. Brand24 collects real-time social data from millions of sources around the web. Their web-based dashboard provides actionable customer insights, email alerts, influencer analysis, automated & customized PDF reports, infographics, etc. The tool allows measuring critical metrics around buzz and sentiment.
Over 30,000 brands widely use its international version worldwide to monitor their PR & marketing efforts. The company serves a few most prominent customer logos globally, including H&M, IKEA, Intel, Carlsberg, Discovery, and Vichy; however, their main client focus is around small and medium businesses that generate the majority of revenue.
“As CFO, I've observed a notable shift in our approach to growth and business. We've transitioned from a client growth-based strategy to a value-based strategy to reflect the value of our tool for our clients. This approach has instilled a sense of calm in our management team and bolstered our business confidence in a way you cannot underestimate.”
Bartosz Kozłowski, CFO Brand24
We worked with Brand24, a tool for monitoring online mentions, from March to November 2021. The management felt that their pricing wasn't reflecting the tool's actual value, causing users to pay less than they should.
With our first collaboration, we’ve helped them increase their ARPU by 23% while keeping user churn at a minimum. You can see the entire case study here.
A few months later, Michał Sadowski, Brand24's CEO, contacted us again. As of early 2022, the company was transitioning to a more strategy-driven entity, and this time, our job wasn't just about tweaking pricing but revamping their entire pricing strategy.
As a publicly traded company, Brand24’s CFO Bartosz Kozłowski had a clear mission: increase profitability to a level that would relieve any financial stress for the foreseeable future regarding shareholders. The company had plenty of growth potential, but the challenge was to tap into it effectively.
Achieving this goal required a strategic approach to pricing, which was also a goal in itself. The management team recognized that reactive, one-time price changes were insufficient, and the company needed a long-term plan.
On top of that, to fully capitalize on their growth potential, they needed to figure out the actual market value of the tool and strategize on how to upsell to users.
So this time, we provided strategic support by regularly consulting with the management on crucial areas related to pricing and monetizing. As interim pricing managers, we were a source of strategic guidance.
Whenever the B24 management team had a pricing-related dilemma, we provided a new perspective, suggestions, and recommendations and sought out potential risks and challenges.
…And when some actual, hands-on work needed to be done, we rolled up our sleeves and got the job done.
We started with a strategy review to decide where Brand24 should head over the next five years. This involved competitor analysis, studying their product roadmap, comparing their market positioning with Brand24's, and forging a new business strategy.
The strategy was built on in-depth internal and external research. This included a competition matrix and conjoint analysis, the latter being a top-tier method in statistical analysis for understanding customer preferences.
We ran workshops focused on value-based selling, teaching the team to communicate the company's worth more effectively. This significantly improved the marketing communication on both the website and sales materials.
We also lent a hand with RFP support for crucial deals in the pipeline for Insights24, a new Brand24 product, assisting the team in preparing offers and adopting a value-based pricing approach.
We made subtle tweaks to the pricing structure to boost Average Revenue Per User (ARPU) while keeping churn growth to a minimum. These adjustments included increasing prices, getting rid of heavily discounted accounts, or upselling them.
Another major accomplishment was establishing a whole price management process, resulting in four price changes overall, which brought a significant financial impact.
And, of course, we were always on standby to help various teams tackle their pricing-related challenges, like developing custom pricing for specific customers.
In the financial report for the first quarter of 2023, Brand24 showcased some stellar growth figures compared to the previous year. These included:
A revenue spike of 1.4 million (PLN)
MRR (Monthly Recurring Revenue) jumped by 0.44 million
The company's market capitalization has seen a notable increase of approximately 50% over the past year, signaling a return to a robust growth trajectory.
In the same period, the value of the company's stock on the market has also seen considerable growth.
What's noteworthy, in the financial report, Brand24 cited two main reasons for the ARPU growth: a price change for existing customers and a pricing increase for new clients—precisely what we started working together on at the beginning of 2022.
But the real victory lies beyond just the impressive figures and metrics. A more profound transformation has taken place.
Brand24's team has truly understood its market worth, fueling newfound business confidence. They've transitioned from a reactive pricing approach to that of a mature, sustainable enterprise when pricing is yet another lever of value creation.
It's also important to highlight that these outcomes were only possible with the incredible efforts of the Brand24 team. Mike's company is remarkably organized and proactive in learning and implementing changes.
Remember that we are merely advisors, helping to structure things and provide counsel—the amazing client’s team did the massive work!
So a big shout-out to the entire B24 team for their outstanding work, and hey – we’re not done yet, right?!