3rdRisk:

Elevating pricing, packaging and go-to-market

3rdRisk is Europe's premier cloud platform dedicated to streamlining third-party risk and compliance operations. It addresses the growing complexities organizations face in managing an expanding network of third-party relationships. Over recent years, the number of third-party engagements has surged from a few hundred to thousands, significantly increasing both complexity and risk. This shift has made it increasingly challenging for risk and compliance teams to maintain control.

Since its inception, 3rdRisk has continuously enhanced its platform by introducing advanced technical features, AI-powered applications, and improved support offerings. With this new phase of maturity and increased customer value, 3rdRisk had the opportunity to realign its pricing, packaging, and go-to-market approach to support its continued growth.

In collaboration with 3rdRisk's team, the objective was to enhance sales velocity and Net Revenue Retention (NRR) by developing packaging and pricing strategies that better addressed customer needs.

The process began with a thorough reassessment of the platform's value across various customer segments, resulting in a refined segmentation based on customer needs and willingness to pay. This informed the creation of a new packaging structure, designed to align seamlessly with the different maturity stages of third-party risk management among customers. The customer-centric approach enabled a differentiated strategy: focusing on a land and expand model for less mature customers, while prioritizing optimized contract land values for more mature ones. This principle was also applied to balancing product-led versus sales-led growth choices.

To establish a pricing model that delivers a win-win outcome, a scalable price metric was chosen to reflect the value provided to customers. Price levels were adjusted to align with delivered value and rigorously tested prior to launch. Furthermore, pricing and value communication strategies were refined, and the partner channel strategy was reassessed to support these changes effectively. 

By collaborating closely with 3rdRisk's team, the project delivered several key outcomes:

1. A customer-centric packaging structure aligned with customers' maturity levels in third-party risk management

2. A win-win pricing model designed to scale optimally with customer value

3. Realigned price levels reflecting the value of 3rdRisk's platform and service offerings

4. A refined price and value communication strategy

3rdRisk is now in the process of implementing this new structure. Initial simulations indicate substantial benefits. As a result of these collaborative efforts, 3rdRisk is well-positioned to unlock the potential of its next phase of growth.