The Information Services sector presents a unique opportunity for businesses that collect and analyse data to transition into high-value subscription business models (DAAS – Data-As-A-Service). Many businesses across diverse industries generate valuable Business Intelligence as part of their operations, but they may not know how best to monetise that, especially outside their home-market. At Phoenix, we focus on identifying companies at the early stages of this journey – those that already generate valuable market insights but have yet to fully capitalise on the potential of a subscription-based model.

But how have Information Services businesses evolved, how can technology enhance the value of datasets, and what is the impact of different pricing strategies on long-term growth?

Identifying the opportunity

Many businesses generate significant data as part of their operations, often as a by-product of their primary service or position in the market. Industries such as procurement and niche consultancies are prime examples. Service providers such as this might accumulate valuable insights over time by virtue of their position at the nexus between buyer and seller. As a by-product of managing tender processes, writing research reports or covering market activity, valuable data is surfaced which can then be enhanced and sold back to principal market participants. Businesses that successfully transition to sell this business intelligence via a subscription model can achieve substantial increases in valuation. Data subscription revenues are often valued at a 200-300% premium to those of a traditional services based income stream. This premium is underpinned by the greater revenue visibility subscriptions offer and higher gross margin drop-through from growth.

Enhancing value through content, technology, and analytics

Whilst collecting the information is great, today prospective users of insight can be awash with choice and confused by the sometimes-competing signals all that data spits out. A critical component of the transition to monetise data is therefore helping users find what they want, when they want it. This means enriching the value proposition through content and context expansion and technology integration. The value of Information Services today is not just in the data itself but in how effectively customers can extract actionable insights from it.

The traditional approach to Information Services often revolves around “universal” products, data or insight which, while valuable, will limit client engagement and long-term customer retention. Companies like Capital Economics have evolved beyond this “one-size-fits-all” model by diversifying their content offering and delivering personally configurable data & insight in the channel, technology and format of a user’s choosing.

Capital Economics has taken a three-pronged approach. Firstly, they have moved beyond static reports to develop deep insight, real time data feeds, and proprietary analytics. Secondly, they have developed personalisable data and dashboards, allowing users to create custom views tailored to their specific interests and use-cases. And finally, they have provided multi-format accessibility, including API integrations and channel partners such as Bloomberg. Together this provides more actionable content when and where it is needed, ensuring that clients find clear value. This in turn creates the opportunity to improve both pricing and retention by embedding Capital Economics insight in clients’ own workflows.

Optimising pricing models for long-term success

Building a clear value proposition is crucial role in ensuring that customers recognise and are willing to pay for the value of a modern business intelligence service. The shift from a heritage world of generic universally applied insight to a personalised experience, embedded in user workflow can significantly enhance profitability where this added value can be unlocked.

Historically, Information Services businesses have operated on a content-based pricing model, where customers pay for specific insight or “slices” of data. However, this model has inherent limitations, it treats all clients as one, failing to match user needs and therefore value in use. A modern pricing strategy should therefore focus on:

• Value based pricing: Tailoring configurable product and platform experience to answer clients key needs. Equating this to a purchase ROI to drive maximum client value (greater efficiency, speed to action, improved decision making) and therefore price.
• Tiered subscription models: Offering “Good, Better, Best” packages with increasing levels of access and features. A vital means through which to anchor the starting point of a conversation on value based pricing.
• User or usage based pricing: Scaling pricing based on the depth and range of engagement within an organisation. This becomes a key upsell opportunity.
• Feature-based pricing: Unlocking premium features at higher price points or as add-ons (e.g., AI-driven analytics, customisable dashboards or high-touch advisory).
• Accelerating retention: With clients needs now more closely met, not only is there pricing uplift but an opportunity for greater stickiness at renewal.

These pricing models allow businesses to capture a broader customer base while ensuring that high-value users pay proportionally for advanced features and deeper engagement. The “watch-out” however is that this often requires a fundamentally different approach to selling. It is no longer a binary product or feature sell but requires a deep understanding of client needs and activity to position the information solution to meet their needs.

Exploring derived usage pricing

For those companies like Capital Economics who have transitioned to value based selling, there are further opportunities to grow revenue through deepening usage.

One such model which is beginning to be implemented is derived-usage pricing. This allows Business Information companies to monetise how customers leverage data beyond their subscription, for example, using insights to train AI models or building data feeds into clients automated processes for trading or risk management.

Unlocking growth in Information Services

The journey from raw data collection to a fully scalable Information Services service is complex but highly valuable. By broadening content offerings, leveraging technology for personalisation, and optimising pricing strategies, companies can significantly enhance their value proposition and financial performance.

For businesses seeking guidance on this transformation, Phoenix Equity Partners is actively investing in and supporting companies on this journey. If your organisation is exploring how to transition to a scalable information services model, we’d love to hear from you.

Contact us today to discuss your business and growth potential.