On-demand video exercise programs

Challenge

As the corona pandemic hit, how we work out changed and for many going to the gym was no longer possible. In this new era the demand for on-demand video exercise programs increased. But for many providers, including our case study, they were unsure on what to charge. 

Solution

We measured how different value drivers effected demand and found that the marketplace There are two realistic prices of $14,99 and $29,99 for a monthly subscription for online exercise programs for US and Canada, across all segments. The long term aim was to increase the price to $49/month. This pricing strategy also highlighted what each exercise program drove the customers willingness to pay. 

Results

The company added a new version of on-demand video exercise programs, and increased the price from $14.99 to $29.99. Which resulted in a revenue about 100% higher, while sales volume about 5%, for a half of their offerings.