Industry
Inventory Management, SaaS
Company Size
~150
Headquartered
Tallinn, Estonia
Founded
2017
Funding raised
$51 million (Northzone, Atomico, 42Cap)
Katana has made significant strides in delivering value to its customers, generating $2 billion in total customer revenue from sales in 2023. With an exceptional customer rating of 4.8/5, Katana is recognized as an industry-leading inventory management software provider. Their commitment to direct-to-consumer manufacturing is particularly noteworthy, empowering smaller, local manufacturers to reach end customers directly and foster wealth creation within their communities.
During our collaboration, we identified areas for improvement in Katana's pricing strategy to better align customer plans with the value provided. The existing pricing packages were not fully optimized, with the majority of customers concentrated in only two of the four pricing tiers, and limited upsell opportunities. With double-digit millions invested annually into the product roadmap and development, Katana was able to release enhanced capabilities and modules to be independently priced.
Additionally, the complexity of the pricing model limited expansion revenue, constrained adoption and stickiness, and overlooked edge cases. The complexity of the pricing page also posed challenges for end-users, potentially leading to decision fatigue.
The solution was under-monetized for key target segments compared to value delivered, and there was an opportunity to increase monetization of enhanced product capabilities. Also, establishing clear guidelines for discounting was deemed essential to drive monetization and enhance customer relationships.
Aligned with the management team, our primary goal was to enhance Katana's land and expand motion. This involved developing and implementing a future-proof packaging and pricing structure for new and existing clients. The aim was to accelerate new business acquisition and increase net dollar retention.
We focused on differentiation, enhanced upsell opportunities, and strategic pricing adjustments. Key deliverables included:
Following the implementation of these initiatives, Katana witnessed significant outcomes:
MRR increased by ~30% at Pricing launch
Enhanced Lifetime Value (LTV) by 50%
Through collaborative efforts, Katana is well-positioned for continued growth and remains dedicated to empowering SMBs in the manufacturing sector with innovative solutions.
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