Forecasting the Demand for a New SaaS Offering
Challenge
A major provider of business management subscription software wanted to quantify the potential number of customers acquired with the introduction of a new service.
Approach
ASSESSOR® – M/A/R/C®’s proprietary forecasting system that delivers accurate volumetric estimates and comprehensive diagnostics to give a complete picture of a new product’s potential.
- Qualified target sample included sole proprietors, small business owners, and mid-sized business owners, further categorized into the client’s key segments.
- The online monadic survey captured critical category dynamics, followed by reactions to one of two concepts. One cell evaluated the base SaaS offering, whereas the other cell saw a version with added features.
- A Price Sensor exercise was incorporated to determine the optimal monthly subscription price.
Outcome
- Results showed promise among mid-sized prospects who liked the added convenience but limited interest among sole proprietors and small business owners who struggled to see the value regardless of the price point.
- Bundling additional features did not meaningfully increase Activation Potential.
- Pricing recommendations were based on the mid-sized segment.
- While the ASSESSOR® demand forecast was lower than the client’s internal estimate, the opportunity among mid-sized prospects was well received as it provided a pathway to upsell other products in their line-up. The new offering was launched, resulting in first-year sales consistent with the ASSESSOR® projection.