Developing a pricing strategy

Service: Pricing strategy
Sector: Events

Issue
Our client, a peripatetic conference for professionals, had historically not focused on delegate revenues, having been able to rely on strong exhibitor revenues. Consequently delegate prices had remained largely flat for 10 years.

Now wishing to maximise delegate revenues, management asked AMR to develop a pricing structure that would
a) Significantly grow revenues
b) Minimise negative impact on delegate attendance

Approach
AMR carried out an analysis of historic attendance patterns and delegate data. Combining this analysis with in depth delegate interviews and an online delegate survey, AMR developed a delegate segmentation to inform potential pricing scenarios .

Recommendations
AMR developed a series of pricing scenarios detailing revenue uplift opportunities together with likely attendance impact from which, in discussion with the client, one pricing approach was selected. AMR also set out an implementation plan designed to mitigate attendee loss through phasing of price increases together with other marketing and event focused measures.

Results
The estimated impact on delegate revenues from the new pricing strategy is c.30% per annum

Insights from AMR’s research
The client gained the key insight that the price sensitivity of its customer base varied widely by segment. Its most loyal customers were the least price-elastic, despite being the segment that was paying least on average to attend the event.

If you would like to speak with us regarding pricing, please contact jonny.baynes@amrinternational.com