Case Study: Driving Profitable Growth for Software Startups

Executive Summary

Welo Inc., a rapidly growing startup offering a spatial collaboration solution, partnered with Applied Frameworks to address challenges related to pricing strategy and market differentiation. Through a tailored approach using the Profit Streams Canvas™ and Solution Profitability Management™, Applied Frameworks helped Welo transition to a space-based pricing model, align internal product thinking with value delivery, and set the foundation for sustainable growth.

“From Kevin, we ended up with a framework that guides us. It helps us align our go-to-market, target clients, pricing, and packaging with profitability. It is amazing the clarity we have for implementing, testing, and learning”. - Cliff Pollan, Founder / CEO 

The Challenge

Welo Inc., a four-year-old startup in the collaboration technology sector, faced a critical challenge: despite early success, their growth had begun to slow, and the anticipated network effects were not materializing.

The company needed a strategic approach to:

• Revitalize Growth: Identify and implement a new pricing strategy to drive engagement and profitability within their software product offering.
• Strategic Pricing: Decide between user-based or space-based licensing models for better alignment with their value proposition.
• Differentiate in the Market: Create a pricing and packaging approach to set Welo apart from competitors, especially in the crowded market for spatial collaboration tools.

The Solution

Applied Frameworks leveraged our extensive experience in pricing strategy and the Profit Streams Canvas to craft a custom solution tailored to Welo’s unique challenges. 

The solution included:

• Transition to Space-Based Pricing: Moving from user-based pricing to a space-based model allowed Welo to better align with its product’s core value proposition. This approach also encouraged customers to integrate more users into the platform, driving higher engagement.
• Custom Framework Development: Applied Frameworks created a bespoke pricing framework that incorporated learning loops, enabling Welo to continuously test, refine, and optimize its pricing and packaging strategies.
• Strategic Implementation: The new pricing strategy was piloted with select clients and prospects, ensuring it aligned with Welo’s business goals and resonated with its target audience.

Results:

Since implementing the new pricing strategy, Welo has seen the following benefits:

• Aligned Product Thinking: The new framework provides clarity, aligning internal product thinking with value delivery and customer engagement, which is crucial for a startup software company.
• Continuous Improvement: Welo now benefits from a built-in feedback loop, allowing for ongoing testing and optimization of pricing and packaging strategies—essential for staying competitive in the fast-evolving market.
• Strategic Growth: The space-based pricing model is expected to play a critical role in achieving Welo’s growth objectives over the next six months, particularly in key market segments.

Kevin and the Applied Frameworks team were instrumental in helping us rethink our pricing strategy. Their approach allowed us to align our internal product thinking with how we drive value, and the ability to continuously test and refine our strategy has been invaluable. We’ve just started implementation and are already seeing positive results." – Cliff Pollan, Founder & CEO, Welo Inc.

Summary

By partnering with Applied Frameworks, Welo Inc. established a robust pricing and packaging model that addressed its immediate challenges and positioned it for sustainable, long-term growth. This case study demonstrates how strategic pricing, guided by frameworks that focus on profitability, like the Profit Stream Canvas, can transform a software startup’s trajectory.

Learn More

We find that startups often benefit from the expert guidance provided in a Growth Pricing Workshop. We recognize that time and resources are limited in the startup world, which is why we designed this workshop to be a collaborative session that allows you to work with industry experts to create a Customer Benefit Analysis, a snapshot of your existing pricing model, and a plan for implementing pricing and packaging improvements. Schedule a meeting to learn more.