Dynamic Pricing leads to a 31% Renewal Revenue Increase

CLIENT:

Large US magazine (over 3M subs) with a massive international audience.

OBJECTIVE:

Mather increased customer lifetime value by identifying optimal subscriber renewal prices for one-year, two-year, and three-year offers.

APPROACH:

To identify subscribers’ renewal propensity (through a churn model) and set prices using Mather’s proprietary Market Based Pricing (MBP) methodology.

RESULT:

While response rates gradually declined, incremental revenue increased greatly.
On an issue basis, revenue increased greatly, suggesting most long-term Renewers took the one-year offer and have a high probability of renewing again next year.

Premium Content Engine

Merch Gift Cards Outperform e-Edition Access

Dynamic Pricing leads to a 31% Renewal Revenue Increase

How Registration Walls Impact Subscriber Growth

Measuring the Impact of a Hard Registration Wall

Digital Engagement Pricing Strategy

Raising digital renewal prices

Related Posts