Setting prices for new service

Denník N

Denník N is a Slovak independent journal and online medium. It is one of the most powerful media in Slovakia, opening up societal topics and bringing quality investigative journalism. Each year it is one of the most awarded media in a journalistic competition named Novinářská cena.

Although most media are funded by advertising or contributions from their owners, the operation of Denník N is primarily based on subscription model.

RESULTS

3x increase of the number of customers with non-basic subscriptions
0% cannibalization of new package among customers with the most expensive subscription
Successful introduction of new services with the impact on revenues in tens of percent
Increase of accessibility of popular services to the subscribers

Tomáš Bella
Co-founder and head of digital Denník N

“The functioning of Denník N depends mainly on the income from subscribers and therefore we need to understand their needs and preferences. We were preparing new services and we needed to help with their effective pricing. Pricewise helped us to build a simple and effective subscription offer and also test it without negative impact on the brand. The result of cooperation with the Pricewise is at the highest level of our expectations.”

GOALS

Set the optimum price for the new service with economic news named Denník E
Improve the proposition and structure of the price list based on customer needs
Sustain the number of current subscribers

PRICE TEST OF NEW SUBSCRIPTION OFFERS

Solution

Phase 1: Introduction analysis
At the beginning of the project we performed an analysis of customer behaviour based on real data. Then we discussed a current business situation, industry trends and defined key project goals at innovative workshops with the team of Denník N.

Phase 2: Research of customer needs
We realised an extensive customer research that allowed us to understand how current readers are tracking news and what is important to them. The research opened the world of customer preferences regarding new and established services. Thanks to the results, we were able to put together a new proposal of Denník N to meet the needs of loyal readers.

Phase 3: Price research
During innovative workshops with the management of Denník N we designed several variants of journal subscriptions. We tested the simplicity and efficiency of these variants in a series of quantitative price surveys with customers. Based on the test results we chose the optimal option for the subscription model.

Phase 4: A/B test of the price list prototype
We redesigned the new subscription offer into a simple price list. We used different principles of purchase psychology in order to increase the conversion rate of the price list. The final design of the price list is the result of A/B tests on real online visitors of the journal.

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