Case Study: Sponsorship
About the Organization:
The Client is a team of hard-working individuals dedicated to the insurance industry who they believe in the independent agents who work diligently for their customers. They represent over 1,750 agencies and their 13,000 employees. They are the voice of agencies of every size - from small, family-owned agencies to agencies with offices across the state; in every area - from the rural corners of the Adirondacks to the bustling neighborhoods of New York City.
The Challenge:
After our global pandemic hit, the Client had to reposition their sponsorship packages to make sense for their partners while capturing their share of the profit based on the value that they were delivering. Before working with Pricing for Associations, Client had six different sponsor tiers along with multiple add-ons squeezed onto a one-sheeter. This was overwhelming and confusing many of their partners, resulting in lower conversions and sponsors moving down to lower tiers. In addition, they had to determine what new value-adds they could incorporate given the virtual environment that they would be in for the following year or two.
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:
Pricing for Associations helped Client to clarify what the sponsors valued, their sponsors' goals in partnering, and which components were high and low effort for their association team to pull off. This data drove the decision to repackage into three tiers of good-better-best pricing and value so that more potential sponsors would convert for two reasons: First, there were fewer options and less confusion, and second, more sponsors would move to a higher tier because we understood what value levers would drive sponsors up the ladder.
Based on the solutions Pricing for Associations provided, Client actualized a 40x ROI on their investment for consulting services within that first year. They now have a value and pricing model to carry them for another 1-3 years until they redo their Pricing and Value Roadmap.
Ready to Fix Your Pricing Roadblock?
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