How does Sellforte's pricing work?
February 07, 2024 | Paul Arpikari
Sellforte's pricing starts at €990 per month and can range up to €13,030 per month global D2C and eCommerce company. However, we offer custom pricing omnichannel retailers who wants customized solution.
Although that is a sizable range of variation, we will explain why and how Marketing Mix Modeling Software as a Service (MMM SaaS) solution pricing functions in the following chapters. We will also walk you through:
- The old way the industry used to price MMM
- Value-based pricing
- How value is created with MMM
Pricing methods we didn't choose
There are other ways to price MMM SaaS or various MMM services. We want to provide you with a comprehensive overview of various pricing strategies for MMM SaaS that you may encounter in your search for an MMM solution.
- MMM projects: Typically executed by consultancy agencies, MMM projects are one-off engagements characterized by a defined start and end date. These projects entail a predetermined number of hours, with hourly rates reflecting the consultant's level of experience.
- Pricing per model: This approach represents a more customer-centric pricing strategy, ideal for businesses with straightforward operations and marketing strategies. It benefits from requiring relatively minimal expertise due to the simplicity of the models involved.
- Pricing per an insight: This pricing model is designed with the noble intention of charging based on the insights provided. However, it faces challenges due to the subjective nature of defining what constitutes an insight.
Chosen method: value-based pricing
Value-based pricing determines prices primarily based on the perceived or estimated value of a product to the customer, rather than on the product's cost. This approach allows a diverse range of customers to access the product at price points that reflect their specific circumstances and the value they derive from the product.
This pricing strategy was selected at Sellforte because we believe that customers regard MMM SaaS solutions more in terms of the value the platform can bring to their business, rather than desiring to pay for the modeling work itself.
Understanding that the value of MMM resides in media investments, basing the pricing on this aspect is the most logical approach. Regardless of whether your annual media budget is €300,000 or €100 million, the impact, in terms of percentage, remains relatively consistent, provided there is some level of complexity to optimize.
Guidelines for pricing
Over the years, we have explored and experimented with various pricing models, yet pricing based on media investment has emerged as the most favored by our customers. This preference is attributed to its ease of implementation and scalability.
When we set up the actual price levels, we are following two simple guidelines:
- Customer value vs Sellforte price should always be 10x or higher.
- Pricing should take into account the customer’s unique situation.
Comparing Digital, Global, Local and Enterprise products' pricing
Sellforte has opted to cater to the market through four recognized segments and packages: Digital, Global, Local, and Enterprise. This strategy simplifies the process for companies to identify the solution that best aligns with their business and marketing strategies. These products feature slightly different pricing approaches, which we will explain here:
The Digital package represents Sellforte's self-service offering, designed to minimize manual effort. Data integration is streamlined through data connectors, enabling a fully automated process. Consequently, there are no onboarding fees, only a monthly subscription charge.
Subscriptions can be paid either monthly or annually. Digital MMM is particularly well-suited for eCommerce companies focused on digital media investments. It aims to provide insights into the ROI of their marketing efforts and assist in scenario planning for optimal media investment distribution.
The Digital package, starting at €990 per month, is perfectly suited for companies aiming to grasp media effectiveness comprehensively.
Included in the Digital package:
- Modeling of any business data through integrated data connectors
- Inclusion of owned and digital media
- Daily updated results
- Access to an MMM dashboard and Scenario Planner tool
- Drill-downs and optimization at the levels of Ad Platform, Advertising Channel, Media Group, Campaign Name, Campaign Objective, and Bidding Strategy
The Global package is specifically designed for eCommerce businesses that have scaled up in terms of sales and media engagement. Such companies typically expand their marketing efforts to include offline media as a strategy to attract new customers and build their brand.
Starting at €1,990 per month, the Global package is an ideal solution for global Direct-to-Consumer (D2C) and eCommerce companies seeking a scalable solution.
The Global package includes all the features of the Digital package, with additional capabilities tailored for more complex business needs:
- Discounts and Promotions as Modeling Variables: This feature allows for the inclusion of discounts and promotions in the modeling process, providing insights into how these factors affect business performance.
- Market-Specific Results: The package offers results segmented into different markets, accommodating up to 10 distinct markets plus an additional category for any others. This segmentation aids businesses in understanding performance across various geographic regions.
- New vs. Returning Customer Analysis: A critical addition to the Global package is the ability to differentiate between new and returning customers. This distinction enables companies to tailor strategies for customer retention and acquisition more effectively.
The Local package, priced starting at €2,490, is designed for country-specific, mature online brands that incorporate offline media into their marketing strategies. This package builds upon the foundation provided by the Digital package, with added features tailored to the unique needs of businesses focusing on a specific geographical market.
Included in the Local package:
- New vs. Returning Customer Split: This feature offers insights into customer behavior by distinguishing between first-time buyers and repeat customers, allowing for targeted marketing strategies.
- Offline Media: Integration of offline media into the modeling process provides a comprehensive view of media effectiveness across both digital and traditional platforms.
- Local Digital Media: Focus on digital media channels that are particularly relevant to the local market.
- Data Integration via Data Platform: Seamless delivery of offline and local digital media data through a Data Platform, facilitating efficient data management and analysis.
- Frequent Updates: Digital media data can be updated up to daily, providing timely insights into campaign performance, while offline media data is updated monthly to reflect broader trends and effectiveness.
The Enterprise product is tailored for businesses that operate across multiple sales channels and measure a variety of Key Performance Indicators (KPIs). It is ideal for omnichannel retailers seeking a bespoke solution that integrates both offline and online media channels. This package is designed to address the needs of companies looking for an advanced level of customization and detailed analysis.
The Enterprise package enhances modeling capabilities with:
- Complex, Multi-Sales Channel and Multi-Product Category Modeling: Offers sophisticated analysis across various sales channels and product categories, incorporating industry-specific external data sets for comprehensive insights.
- Brand KPI Modeling: Allows for the measurement and analysis of key brand performance indicators, enabling targeted strategic planning.
- Continuous Service and Recommendations: Clients receive ongoing support and actionable recommendations from a dedicated Customer Success Manager to optimize their marketing strategies.
Additional features of the Enterprise product include:
- Custom Data Sources and Data Cleaning: Tailored integration and cleaning of data sources to ensure accuracy and relevance for the modeling process.
- Extended Model Setup: A more thorough setup process to accommodate the complexities of the business's sales channels, media strategies, and product categories.
- Customizable Time Series: Flexibility to model a specified number of product categories and sales channels (e.g., 15 product categories and 2 sales channels).
- Custom Media Taxonomy: A tailored approach to categorizing media efforts to align with the company's specific marketing strategies.
- Custom Sales and Media Data: Integration of unique sales and media data for precise modeling.
- Additional External Variables: Incorporation of external factors that could impact sales and marketing effectiveness.
- Long-Term Sales Modeling Results: The capability to forecast and analyze sales performance over an extended period.
- Dedicated Customer Success Manager: The option to have a personal Customer Success Manager for specialized support and guidance.
This product typically consists of custom data sources, data cleaning and a longer model setup. Thus, an onboarding fee + monthly fee model is the pricing method.
Pricing page and business impact
On the pricing page sellforte.com/pricing you can use the toggle bars to test out what kind of impact the MMM tool can bring to your business. There you can also find detailed comparisons and additional information on our pricing.
The main driving factor of our pricing calculation is monthly media investment. Namely, the more a client invests in media, the higher the price is and the bigger the business impact will be.
Together with our clients, we have observed that MMM SaaS provides businesses value that is typically 10 times greater than the cost of the solution itself.
Why you don’t want to save with your MMM provider?
Marketing mix modeling, particularly a SaaS solution where you only provide your own data, is ultimately an analytics product, a decision tool for hundreds of thousands, if not millions, of investments, and extremely vulnerable to bad data and a sloppy setup.
Making poor decisions can cost you a lot of money so expertise and focus the topic can actually save you a lot of money. To help protect against this, it is important to invest in a well-designed analytics product.
Curious to learn more? Book a demo.
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