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, taking into account customer preferences, revenue targets, and anticipated competitive reactions. They also aimed to determine the added value of additional subscription features to encourage adoption.
The Approach
Through a conjoint analysis in the US and UK, Numerious presented business IT decision-makers with various subscription 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
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.