Video Subscription Pricing
CLIENT:
Sports League
OBJECTIVE:

A sports league with video streaming subscribers wanted to optimize pricing across their products in over 100 countries.  Churn scoring was also needed.

APPROACH:

Mather Economics developed predictive models of customer retention and churn using historical data from video subscribers over several years.  Mather worked with the data within the client’s data environment.  Mather reviewed pricing and churn model results with the client and revised the models to incorporate feedback and improve predictive power.  Mather applied the results from our models to current subscribers to estimate price elasticity and churn risk and produce recommendations.

Subscription Starts and Elasticities Term and Season Stage

RESULT:

Subscriber-level estimates of price elasticity were leveraged to set prices in a way that capitalizes on differences in price sensitivity across the season and product mix. In this way, acquisition pricing is used to increase subscriber volume, and churn predictions and renewal pricing are used to increase retention and maximize the value of the growing subscriber base. Mather’s pricing recommendations and churn predictions are integrated into the league’s email marketing platform, enabling responsive marketing campaigns based on subscriber viewing behavior. This integration allows Mather to quickly test recommendations, report on results, and act on insights.

 

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