Customer Success Story: On-Demand Video Exercise Programs 

Challenge:

With the advent of the COVID-19 pandemic, the landscape of fitness transformed dramatically. The conventional gym setting was no longer viable, leading to a surge in demand for on-demand video exercise programs. However, providers, including our case study subject, grappled with a significant challenge – how to strategically price their offerings in this evolving market.

Solution:

In response, in the app they conducted a comprehensive analysis, scrutinizing various value drivers to understand their impact on demand. The outcome was the identification of two feasible price points – $14.99 and $29.99 – for a monthly subscription to online exercise programs tailored for the US and Canada, spanning all market segments. Additionally, there was a long-term vision to elevate the subscription price to $49/month. This pricing strategy not only addressed the monetary aspect but also shed light on the correlation between each exercise program and the customer’s willingness to pay.

Results:

Implementing these insights, the company introduced an enhanced version of on-demand video exercise programs, accompanied by a price adjustment from $14.99 to $29.99. The impact was remarkable – a staggering 100% surge in revenue, with a modest 5% decrease in sales volume for half of their offerings. This success story underlines the power of strategic pricing in navigating market shifts and maximizing profitability.