Designing and implementing a cost share process to our researcher website.
Character Lab faced a challenge of over-reliance on large philanthropic grants for its sustainability. To diversify revenue streams and ensure long-term financial stability, the organization decided to implement a fee-for-service model for its services to academic researchers.
Flow showing internal and external processes
Challenges
• Dependency on Grants: The organization's reliance on grants created a risky and unsustainable funding model.
• User Perception: Researchers were accustomed to receiving the service for free and may have been resistant to paying for it.
• Equity and Accessibility: Ensuring that the fee-for-service model was equitable and accessible to all researchers was a key challenge.
Goals
• Diversify Revenue Streams: Reduce dependency on grants and increase revenue from researchers.
• Ensure Sustainability: Create a more sustainable funding model for the organization.
• Maintain Positive Relationships: Continue to attract and support researchers while implementing the fee-for-service model.
Researcher application with cost feature added. Our goal was to make the process of calculating and paying as simple as possible.
Design and Implementation
• User Research: Conducted extensive user research to understand researchers' funding models, expectations, and willingness to pay.
• Pricing Strategy: Developed a pricing strategy based on market research, cost analysis, and consideration of grant funding.
• Integration with Existing Platform: Integrated the fee-for-service feature into the organization's existing digital platform.
• Payment Options: Offered multiple payment options to accommodate different universities and researchers.
• Communication and Education: Proactively communicated the changes to researchers and addressed any concerns or questions.
Outcomes
• Successful Launch: The fee-for-service model was successfully launched and adopted by researchers.
• Revenue Generation: The model generated significant revenue, over $150k in the first year, contributing to the organization's financial sustainability.
• Positive User Experience: Researchers generally had positive experiences with the fee-for-service model and did not report any major issues.
• Continued Researcher Attraction: The organization continued to attract researchers, even those without their own funding, by offering scholarships and flexible payment options.
• Cultural Considerations: The organization learned the importance of addressing cultural implications and communicating changes effectively to avoid resistance.
Lessons Learned
• Proactive Communication: Open and transparent communication with researchers is essential when implementing new features or changes.
• Flexibility and Accommodating: Offering multiple payment options and considering researchers' financial situations is crucial for successful adoption.
• Collaboration and Partnership: Working with external vendors and collaborating across departments can streamline the implementation process.
The successful implementation of the fee-for-service model demonstrates the organization's ability to adapt and innovate to ensure long-term sustainability. By carefully considering user needs, addressing potential challenges, and effectively communicating changes, the organization was able to diversify its revenue streams and maintain positive relationships with researchers.