Case Study: Educational Product
About the Organization:
The Client is the only specialty nursing organization dedicated to the practice of medical-surgical nursing. A dynamic community of more than 13,000 medical-surgical nurses, they're committed to quality patient care through professional development, certification, scholarship, and advocacy. Client is a society founded in 1991 and has chapters in all 50 states in the US. Their total revenue for the fiscal year 2020 amounts to $3.5 million. Client has 11,930 members across 12 countries.
The Challenge:
Client recognized a gap in their educational products - most of the education that they offered was based on time spent learning, but not based on the transformation or change of behavior from going through the learning program. They set out to create three new educational products. The first two were certificates that assessed the change in behavior of the learner through scenarios and documented changes in best practices, and the third was a competency-based model that would benchmark the learners current competency, provide training on how to grow across pre-defined domains, and then allow the learner to reassess their competency to track growth. The problem was Client did not know how to determine the full value propositions for these three new educational products, and they did not know what to price these three educational products for. Client turned to Pricing for Associations to help.
Our Custom Solution:
To overcome this challenge, Pricing for Associations customized our proprietary framework to determine the right answers for our client. Our framework always blends the science of data-driven decision-making and the art of pricing and value psychology to confidently lead our clients in their pricing and value strategy.
Step 1. Kick-Off Call
We began by welcoming their team into our family of clients, building trust, and understanding their intended goals. We reviewed our timeline to ensure we were on the same page with deliverables, discussed what internal data existed to review, and received a demo of any pertinent products and technology to best understand the product.
Step 2. Historical Data Analysis
We reviewed internal data inclusive of segmented personas and their purchasing behavior, prior surveys and market research related to this project, enrollment, retention, and engagement metrics, and historical purchasing patterns in light of price promotions, discounts, and bundles. This allowed us to understand a clear picture of how the current persona segments interacted with various pricing and value levers.
Step 3. Market Research
Pricing for Associations crafted and conducted a custom survey to clarify segmented personas, key value-drivers, what value was missing, relative value, price sensitivity, and competitive analysis. We then conducted a series of focus groups to further validate the data we gathered and to clarify any nuance in answers. Sometimes we need more data, so our team conducts 1-1 calls if focus groups are low to ensure we have proper data. This information was compiled into a report for our client to best understand where their audience was and to drive data-driven decision-making.
Step 4. Market Testing
With data in hand, we crafted a conjoint analysis with variations of the product to test the audience's consumer behavior when presented with variations in value and price. This allowed us to best capture what the audience would actually purchase, rather than hypothetical answers that can be slightly skewed. With this data in hand, we were confident to present our recommendations to our client.
Step 5. Pricing and Value Roadmap
Pricing for Associations created an in-depth roadmap for our client inclusive of our historical data analysis, market research, market testing, recommended value propositions, value adds, and pricing for not only the upcoming year, but additional strategic recommendations to execute over the following 3-5 years. These recommendations also included quarterly and annual market research questions the organization could use to continuously improve their knowledge of pricing and value needs.
Step 6. Launch
Our client was able to execute their Pricing and Value Roadmap with our continued 30 days of support, so there was no stress when executing their next steps.
The Winning Outcome:
Upon completion of Client's value and pricing project, we were able to provide a data-driven price range for each of the three educational products that would allow for Client to capture their share of the value while meeting their enrollment goals for the greatest impact on their members possible. We were also able to share additional value-adds that their audience asked for. While those wouldn't be included in Client's initial launch, they were goals for adding value in the first 3-5 years, and strategically these became opportunities to continue to raise the price of their programming as further value was added.
Based on the work Pricing for Associations completed, Client actualized an ROI of at least 5x their investment in consulting in the first 12 months of the launch, with much more opportunity for profitability in the first 3-5 years.
Ready to Fix Your Pricing Roadblock?
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