The subscription market is at an all-time high and is only forecast to intensify. In Europe alone, ING estimates consumers now spend €350 billion per year on subscriptions, attracted by personalized offerings, purchasing convenience, and the cost-effectiveness of subscription offerings vs one-off transactions. In the USA, the subscription e-commerce market has grown by more than 100 percent a year over the past five years. Today, 15 percent of all online shoppers in America have subscribed to one or more products, typically in the form of monthly boxes.
With this shift in the market, everyone from meal kit brands to online media providers are recognizing exciting new sales and marketing opportunities with the potential to attract lifelong customers and the dependable revenue streams they need to grow.
But as online competition intensifies and consumer expectations soar, it’s critical you structure your subscription packages to appeal to your target buyers while maximizing revenue per user. Failure to deliver the right offerings at prices your consumers are willing to pay will drive them towards competitors with similar offerings and more preferable services
So here’s how we can help you optimize your subscription services.
What it does for you
Traditionally, online subscription services use A/B testing for website optimization and also for testing new portfolio and pricing scenarios. Yet in most cases, especially for large services, you don’t want to test the new offerings using live A/B testing as the number of options is too large and/or to avoid alienating target customers.
Helping you answer questions like
- What is the opportunity in volume and revenue when upselling my current customers to a more premium subscription?
- What is the risk of cannibalizing within my current portfolio compared to new customer acquisition?
- Which product features are the most important discriminators and what is the value of brand?
- What does the configuration of the optimal lineup for the portfolio look like?
How it works
SKIM’s decision behavior platform builds on over 30 years of experience in practicing and advancing choice modeling techniques. We provide an adaptive approach to each project with the appropriate blend of methodologies to fit the project and market needs. Our approach is based on survey testing with the relevant customer base away from your website. This enables us to test very complex future scenario space to provide you with an optimal portfolio and pricing strategy. It also frees your A/B testing resources for other web optimization needs.