PGGM: Packaging and Pricing for HR-benchmarking services

PGGM, one of the Netherlands' leading pension and asset managers, is committed to providing affordable, sustainable pensions for its clients, pension funds, and their participants. One of its sub-brands, PFZW, serves the care and wellbeing industry by offering HR data benchmarking services through an HR-data platform. This platform allows clients to evaluate key organizational and HR-related KPIs, compare their performance with peer groups, and use the insights to shape HR strategies and policies.

Working closely with PGGM-PFZW’s data services team, the goal was to design a packaging and pricing model that better reflected the value clients derived from the benchmarking platform. This strategy aimed to accommodate the needs of smaller, less data-mature organizations while enabling larger, more data-savvy clients to maximize the platform’s full potential at a premium rate.

The process began with a comprehensive review of the platform’s value proposition across various customer segments. This informed the development of a refined customer segmentation model based on customer needs and willingness to pay. From this foundation, a new packaging structure was designed, tailored to the varying levels of data maturity and organizational size.

A customer-centric strategy emerged, emphasizing a ‘land and expand’ approach for less mature clients, allowing them to explore the platform’s basic features while gradually increasing engagement. For more mature clients, the focus shifted to maximizing initial contract values through access to the platform’s advanced capabilities.

To ensure fairness and scalability, a dynamic pricing model was introduced, linked to a metric that accurately reflected the value delivered to customers. In addition, price fences were implemented to guarantee that each client received fair value from the platform.

By collaborating closely with the PGGM-PFZW data services team and key commercial stakeholders, the project achieved several significant outcomes:

1. Customer-Centric Packaging Structure: Developed a tiered packaging system tailored to customers' data maturity, organizational size, and usage intensity.
2. Scalable Pricing Model: Introduced a win-win pricing approach that optimally scales with the value delivered to customers.
3. Value-Based Pricing Adjustments: Realigned price levels to better reflect the value of the platform and associated service offerings.
4. Enhanced Communication Strategy: Refined the approach for communicating price and value to customers effectively.

PGGM-PFZW has implemented the new pricing structure, which is now available on its website (click here). These collaborative efforts have positioned PFZW to unlock the full potential of its services, ensuring sustained value creation for its clients.