A midsized US publisher needed to increase circulation revenue while minimizing volume loss.
Mather Economics analyzed data on each subscriber to estimate their sensitivity to price increases and determine the ideal price adjustments upon renewal. Changes in total expected revenue and volume from the price changes were estimated. Recommended price changes by account were provided on a weekly basis along with a representative sample of accounts for a control group. Performance reports were produced weekly to carefully monitor the pricing campaign.
The program was closely monitored by Mather Economics and the client. By strategically applying varying price increases at the subscriber level, the client realized a circulation revenue increase of 8.7% over a 9- month period while incurring only a 1.38 percentage point increase in subscriber stops. Mather actively examined each segment’s performance and adjusted the pricing actions in response to the findings. With the initial pricing round successful, the publisher is now confident and prepared to move forward with a more aggressive pricing increase to bolster their financial position in the upcoming fiscal year.