The Problem
After an initial test launch, a credit card company was ready to scale its customer base. The product team needed objective data to identify the ideal mix of benefits to offer prospective customers as well as the maximum annual membership fee they could charge while minimizing alienation. Further, since many benefits were tied to brand partnerships, they needed to understand which partnerships to pursue.
The Approach
We fielded a survey-based research approach using different methodologies within the same survey to efficiently tackle all of our client’s learning objectives.
Measure Reach Of Different Core Benefits
A major learning objectives was to identify how many core benefits our client needed to offer to reach the greatest number of potential customers. We used TURF analysis to assess the degree to which each benefit could reach unique, net-new customers and therefore determine how many core benefits our client needed to offer to maximize initial interest.
Weigh Brand Benefit vs. Brand Value
Since our client had many different brands they could work with for their secondary set of benefits, we needed to determine which ones were worth the effort. By measuring the awareness of different brands and how compelling each brand offer was, we could isolate the relative importance of brand vs. benefit to see what customers really cared about.
Identify Demand & Revenue Opportunity
As a premium credit card with premium benefits, our client needed to determine how much they could reasonably charge without incurring heavy demand declines. This is why we also included a Gabor-Granger pricing analysis to see exactly how much our client could charge (if anything), before customers would no longer pay.
The Results
Once complete, the team enjoyed the following results…
Customer Reach Potential
Identified one core annual credit card benefit that could help our client reach over 70% of their target market.
Brand Awareness Over Benefit Value
Pinpointed the importance of brand awareness over benefit value when assessing which partners to include within the credit card’s secondary offering.
Revenue Maximization
Plotted the demand versus price curve to identify the ideal price point to maximize revenue.
Targeted Customer Segment Potential
Uncovered a targeted sub-segment that would enable the company to maximize price points and revenue potential.
Did you know
Products frequently offer a wide variety of features and benefits, but often only a few have true impact on attracting customers. Isolating those critical features and benefits goes a long way to optimizing positioning, messaging, and go-to-market strategy to increase customer conversions.
