Case Study: Choice Modeling

IDENTIFYING THE PRIORITY FEATURES AND PRICING SENSITIVITY OF CUSTOMER SERVICES

The Situation
The way that our client delivered some of its services had changed over time. The client now wanted to assess the importance of existing features of the service, as well as the appetite for customers to pay for additional benefits, and how this differed by type of service. The project had a high level of urgency, requiring quick turnaround of key learnings.

Our Approach
AOR worked with the client to design a robust online study which would provide both quick key insights as well as in depth insights in customer preferences and sensitivity levels. The design involved a mix of conjoint, choice experiment and price sensitivity measures, across different service types and customer segments.

The Result
AOR was able to provide early learnings and guidance on service priorities for multiple services based on a combination of conjoint and price sensitivity analysis. AOR also delivered to the executive team multiple decision support systems based on choice modelling with allowed the team to manipulate different service mix options to understand likely take-up at different levels among different customer segments, and the profitability implications.