FINTECH PRICING & CUSTOMER JOURNEY
Challenge
Sagewell is a set of fintech services and tools focused on helping people manage their money during retirement. We found via surveys that 1) people's expectations of what they'd pay for such services varied a lot 2) we were getting particular interest from a subset of users who wanted to use our very high APY checking account to park their money. How could we get them involved in more of our products/services?
Solution
We doubled our subscription fee for financial planning. And we used data and research to define a customer journey that would get the new segment to sign up for additional products and services.
Outcome
The doubled subscription fee led to less than 5% drop-off in conversions, which confirmed the research that suggested there was more flexibility in pricing than we realized. The new customer segment we called "Interest Rate Dads." We used survey results, ongoing behavioral data, and rep engagements to create more individualized, and mostly automated, ways to upsell IRDs on further services and products.
The bar chart above is a rough representation of the answers to a survey questions about how much target customers would expect to pay for the financial planning services Sagewell offered on a subscription basis. At the time the lowest plan started at $10/month.
What these results showed was that few respondents said $10 was what they'd expect to pay, many more expected $20. This indicated potential pricing flexibility and that a price between $10 and $20 might not yield much drop off. We had to also consider that what people say they'd pay for something isn't necessarily an accurate predictor of what they will pay. But in this case we were right. Sagewell doubled its base price and saw less than 10% dropoff in conversions.
Are you wondering why there was could be such a huge range in what people expected to pay for the same bundle of services? It turns out that what people expect to pay correlates far less to how they value the collection of services, and much more to what they currently pay for financial services.
Below showcases the prospect-to-customer-to-more engaged-customer path I created for a specific user segment, the "Interest Rate Dads".
The above shows the journey from prospect to customer. The video here shows a prototype of how users might onboard to Sagewell's "MyPaycheck" tool and begin to optimize their finances during retirement.
I collaborated with an engineer on this (we wanted to pass real data through various interactions) and we completed it in less than 2 weeks.
The purpose was twofold 1) Demonstrate the intended functionality to potential funders 2) More quickly work through the process for ourselves in order to design and optimize it faster.
