| Subscription Pricing |
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K Group has built more than 50 subscription pricing models since
1994. Using sophisticated modeling techniques we are able to
accurately estimate demand and revenue of new subscription pricing
strategies.
Our Subscription Price Simulators are built
around the notion that true price-value for most subscription-based
business is achieved at the point of renewal
of the subscription, not at the point of trial. K Group pioneered
the concept of threshold pricing rather than
taking frequent pricing actions. Have
a question?
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Pricing to the threshold
maximizes revenue and takes advantage of “natural”
levels of demand. |
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K Group began using the internet to conduct primary research
for subscription pricing in 2002. This not only cut the cost
of the field research by 75%, but also enables us to reach
many user segments (young adults and marginal readers) that
are hard to find/reach using traditional research methods.
Our simulators are used to estimate the impact of new pricing
structures for new and existing subscription types or content
bundles, by subscription length (term), for a range of new
service enhancements, across a range of competitors, and varied
by geographic, behavioral or demographic segment.
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K Group is able to
include a wide variety of parameters in its Subscription
Pricing Simulator
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For an example of a typical input and output screen for the
Subscription Pricing Simulator.
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Subscriber Pricing
Simulator: Input Screen |
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Subscriber Price Simulator:
Output Screen |
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We recommend innovative pricing strategies to maximize retention,
volume and revenue that return a minimum of 15 times the investment.
Often times we are asked to integrate these findings with
the needs of the Advertising Department to more closely target
subscription growth.
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