Case Study: Optimizing Health App Pricing with Juniper's Expertise

✅ Reviewed by Samuel Sarmiento, MD, MPH, MBA

Industry   Healthcare technology (HealthTech).

Objective  Establish optimal pricing for a health app to ensure market competitiveness and profitability.

  Solution   Juniper conducted a comprehensive analysis encompassing the application's unique features, the demographics of the target customer base, potential revenue models, the prevailing competitive market conditions, and established pricing benchmarks. This culminated in recommendations on how to price the app, gain a competitive edge, increase market share, and maximize profitability.

  Deliverables  A detailed Pricing and Market Access Strategy report.

Keywords: Healthcare technology, health app, pricing strategy, market access.

The client was a health technology company developing a cutting-edge application designed to significantly improve the quality of life of people suffering from chronic pain. As the development neared completion and the launch date approached, the company recognized a critical gap in their go-to-market plan: a well-defined pricing strategy.

Many aspects of a health app launch can either make it or break it, including the pricing. Pricing the app significantly higher than similar-value competitors may steer potential customers toward more affordable options. On the other hand, low product pricing may signal a lack of value or poor quality. Pricing mistakes can lead to loss of revenue, lower adoption rates, reduced market share, and harm the brand image.

Correct initial pricing of the app is vital for its success. Once the app has been launched, changing the price comes with a new set of challenges. Customers may feel betrayed if prices are increased, leading to backlash and potential loss of trust. Decreasing the price might signal desperation or devaluation of the product.

How did Juniper Approach the Task?

An overview of the app features.

Our consultants kicked off the project by reviewing the app's features and identifying those that might be compelling to potential users. Understanding the target customers was equally important in order to create a proper market entry strategy and price the app accordingly.

The app, available for download on the App Store, was being tested in a select group of 50 users. This was a way to gain valuable insights into customer engagement, their pain points, and their willingness to pay for the app. Our consultants created guidelines to strategically utilize the information gathered through the piloting phase.

The value proposition.

Any product is set to deliver certain value, or benefits, to its users. To examine the product-market fit, it was essential to understand the market size and growth, market demand, identify customer acquisition and retention, and gain insights into user engagement.

The market opportunities were rooted in the app differentiators and the ability of the platform to address market unmet needs. We also assessed the barriers to market entry, resource and technical capability, and market dynamics.

Exploring potential revenue streams.

Knowing the potential revenue streams helped Juniper formulate a clear market entry strategy. Whether  through subscriptions, in-app purchases, advertising, partnerships, using research data for digital market sales, or other methods, having a defined plan enables effective implementation and optimization.

The pricing plan and marking entry strategy.

The backbone of every pricing strategy is in-depth research. Juniper’s consultants examined the available pricing models and thoroughly presented the price benchmarks of digital health apps and healthcare costs, along with price elasticity, digital health app retention rate, payer coverage, and strategies to maximize profit.

A market entry strategy for the app was based on its value proposition, mapping the customer journey, testing various pricing models, and forming strategic partnerships.

Overview of the B2B model.

Understanding the B2B model is vital for shaping the pricing strategy of an app that also wants to target businesses. By tailoring pricing to address the specific needs, priorities, and purchasing behaviors of B2B customers, our consultants presented opportunities to maximize revenue potential, foster long-term relationships, and drive success in the business market.

The growth strategy.

Juniper’s pricing strategy report also included guidance for future growth. We provided insights into establishing the enterprise value goal, identifying the acquisition targets, and investigating potential partnership opportunities.

What Was Juniper’s Solution?

We aimed to provide both specific and general guidance for the client. The report resulted in a set of recommendations on the pricing strategy, next-steps to take, and where Juniper could offer additional support.

Given the features that the app can offer its broad range of potential customers, we suggested implementing insights from the piloting phase to achieve an optimal pricing model. Based on the in-depth analysis of the competitor landscape, we advised the client to maintain its current subscription model with transactional fees for premium features. Although the app was exploring a variety of revenue streams, we suggested focusing the current launch on providing partial access to key features to maximize customer engagement and profit potential.

 

The report included steps to articulate the app’s value proposition and communicate unique offerings to customers, as well as develop a customer journey map for user experience. We also recommended ways to formulate strategic plans for effective partnerships and acquisitions to achieve optimal growth.

How Did Juniper Impact the App Launch?

The detailed report Juniper delivered propelled the client toward achieving their business goals. The client was able to strategically focus and refine their business model, which led to a smooth app launch and success on the market.

If you work with healthcare information technology and need to establish a research-based pricing and market entry strategy for your product, don’t delay the discussion.

Contact Juniper to receive guidance on how to navigate the complexities of the competitive life science market.