Optimizing Subscriptions for Tech Giants: A Balancing Act of Preference, Revenue, and Competition
The Challenge
A major tech hardware manufacturer sought to optimize their subscription pricing, considering customer preferences, revenue targets, and anticipated competition. They also aimed to determine the added value of additional subscription features to encourage adoption over hardware-only offerings.
The Approach
Through a conjoint analysis in the US and UK, Numerious presented small business IT decision-makers with various hardware-only and hardware-plus-services alternatives.
The Impact
The results offered three strategic options:
1. maximizing market penetration
2. aligning with small business owners' “willingness-to-pay”
3. or maximizing revenue
Leveraging the insights on brand importance and current brand utility, the client chose the “willingness-to-pay” strategy, with the flexibility to adjust pricing as needed.
This data-driven approach empowered the tech giant to make informed decisions, balancing customer preferences, revenue goals, and competitive positioning for a successful subscription launch.