Membership price testing – Parentkind
Parentkind supports, engages and champions parents in children’s learning, to improve the educational experience of young people.
Membership challenge
Parentkind had identified a requirement to undertake membership price testing and analysis. They needed to gain the insight required for the development of a pricing strategy that was both data-driven and future-facing.
The organisation wished to move away from sporadic or RPI price increases, and towards a pricing strategy based on cost of delivery, customer demand, market trends and other influencing factors.
Price testing – what we did
While price testing and analysis provide deeper understanding, we recognise that they are not a solution in isolation.
The project sought to better understand the value of membership and its component parts, and to highlight areas of opportunity and refinement across the offer.
Specifically, the project uncovered the value of the insurance product and other member benefits, while investigating the wider interplay between benefits, pricing, value, and the correlation with membership recruitment and engagement.
In particular, the research outlined optimum benefits and price points, highlighting which combinations were best positioned to drive membership growth.
We modelled a worst-case scenario to map out risk levels, helping to inform Parentkind’s pricing strategy.
Outputs were iteratively crafted and refined in partnership with Parentkind.
Impact
- Insight for a data-driven pricing strategy
- Insight based on cost of delivery, customer demand and market trends
- Risk modelling to test different pricing variables
- Deeper understanding of membership offer beyond insurance
- Summary of the interplay between benefits, pricing, value, membership recruitment and engagement
- Simplified pricing and structure
- Boosted annual member retention to a record 96%
- Boosted annual member recruitment rate to highest in 5 years
- Generated an additional approximate £85k membership surplus per annum
“We implemented Membership Matters’ recommendations, introducing a simplified two-tier membership structure and membership fee increases. The bulk of our annual membership renewals take place in January and we surpassed our expectation, achieving a record 96% renewal rate.
We have had little if any negative member feedback, a testament to the research and modelling undertaken by Membership Matters to really understand our members and the value they attribute to the membership. The price increase also hasn’t affected our recruitment levels and we continue to see year on year growth, January 2023 being our highest in 5 years.
Forecasting, we anticipate reaching out 2025 membership goals one to two years early. Thank you for all your help Membership Matters.”
Oliver Leeds
Head of Membership
Transform your membership pricing strategy
Unlock the full potential of your association with our proven research methodology. Our data-driven approach optimises price points and maximises impact, all without alienating your members. Ready to take your pricing to the next level? Contact us today on 0345 955 5155 or email us at hello@membership-matters.co.uk
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