Angie's List's new CEO, Scott Durchslag, is not yet ready to give his company's performance a glowing review. There is room for improvement, he noted Tuesday, saying that he is not satisfied with the company's tiered pricing strategy.
"The key is definitely going to be revenue growth. That's going to get to pricing and our offer that we make to consumers, as well as how we interact with service providers," Durchslag told CNBC's "Closing Bell" Tuesday.
Angie's List shares dropped more than 12 percent after the company reported weaker-than-expected fourth-quarter earnings Tuesday morning. Despite this earnings miss, the consumer-review site marked a number of major milestones for the company in 2015, including the first profitable year in its history.
Explaining to investors how he intends to grow the company's revenue will be a key part of the turnaround plan Durchslag will share during the Angie's List Investor Day on March 3, he added.
"I'm not satisfied with what we're seeing in terms of pricing realization," Durchslag said. "A lot of it really gets to what value you offer at each of those price points, and we'll be sharing some new approaches on that next week."
In 2014, Angie's List introduced a new tiered pricing membership model on a national basis, offering three different membership plans with varying levels of service and benefits. But, the tiered pricing backfired on the company because new members are largely opting for the cheapest membership plan. Membership revenue fell 8 percent versus the previous year, according to the company.
As it weighs its options, the company may not abandon a subscription model altogether, Durchslag says, but it should do a better job of attracting free users.
"I think a lot of it is about how you monetize free users and then upsell them into being paid users, but you got to be offering them things that they really care about in terms of taking care of their most precious assets, their home," Durchslag said. "We have some exciting ideas to share on how to do that."