Case Study: Membership
About the Organization:
The Client is the “go-to” technology resource for insurance agencies. In one central membership, they bring together world-class tech experts, guidance, solutions, training, and community to increase agency profits and customers’ experience. Through Client, agencies access solution guides & reviews, training, assessments, and tools, a member community, and consulting.
The Challenge:
Client came to Pricing for Associations as a new for-profit entity that was the result of a coalition of state associations coming together to provide technology, training, assistance, and foresight for their association members. Because this service was beyond the scope of what the associations would provide, they found the opportunity to form a new entity, but with that, they had a clean slate to determine the price of their newly found membership and the value proposition of their membership. This was a unique challenge because this membership had to complement the state association memberships rather than compete with the state association memberships.
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:
When Client came to Pricing for Associations, they had a tentative price and projection of what percent of the members would convert to members of this newly formed entity. Through our market research, Pricing for Associations found that if they would have gone with the price that they originally planned to go with, their acquisition rate would have been less than half their projection, and they would not have hit half of their projected revenue goals. Instead, Pricing for Associations was able to confirm a lower membership rate that gave a higher acquisition rate and overall would exceed their profit goals for the first three years of this new business launch.
Client actualized a 10x ROI on their investment within the first 12 months, with more recurring revenue to come for many more years.
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