Originally published at: https://blog.12min.com/the-membership-economy-summary/
Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue
“The Membership Economy” explains the key proven tactics in building a membership organization.
About Robbie Kellman BaxterRobbie Kellman Baxter is a leading author, speaker, and consultant.
"The Membership Economy Summary"In the contemporary world, many customers want to have an access to a certain product, without owning it.
As a result, many companies are changing their business models to membership-oriented ones.
The business model of internet streaming dominates the market at the moment since it is so compelling: it allows users to avoid all costs related to ownership.
However, this is a big shift for the traditional economy, which was built around the concept of ownership.
As the Internet gains more power, more and more companies that give customers alternatives to ownership appear in almost any field.
Companies which work with access, change the focus from the products to customers and the value they give to them.
Customers become members – they benefit from an ongoing relationship, which is usually sealed by a subscription, a membership card, or a user ID.
Members of these new businesses have a stake in the companies they are part of.
It is significant that this model allows for both parties to gain something, for a small price in return.
But, a company needs a large number of members to keep functioning.
So, how can a company go about attracting more members?
Of course, just like any other business: by following a proper acquisition strategy.
Usually, the acquisition strategy that membership companies should follow is a funnel consisted of four stages.
First, go after as many people as you can. Target users who are not engaged, but are already aware of your brand.
After you increase other people’s awareness of your brand, some of them will engage in a trial to get to know your company and what it offers better.
After the trial, some people will continue to the next step and actually sign up.
Finally, some of the people that sign up will become long-term, loyal members.
After you establish the acquisition funnel, you need to make sure you improve the experience by learning about the actions and behaviors of your members.
Improving the experience is key, especially in today’s world where many companies offer the same or similar services.
You have to make sure that the customers continuously keep choosing your organization.
Key Lessons from “The Membership Economy”1. Categories of Companies in the Membership Economy 2. Phases of Subscription 3. Basic Rules for Gaining More Superusers
Categories of Companies in the Membership Economy
- Digital subscriptions
- Online communities
- Offline loyalty programs
- Traditional Membership Economy companies
Phases of Subscription
- Remove friction: make it as easy as possible
- Deliver immediate value
- Reward desired behaviors
Basic Rules for Gaining More Superusers
- Make it easy and provide value from the moment your members sign up
- Make it personal and show care for your members
- Get members involved
“The Membership Economy” Quotes[bctt tweet="Companies that are disciplined in their approach to innovation get a much better payoff than the ones that are eager to “just try something." username="get12min"]
[bctt tweet="Some people want to be anonymous, but others are willing to give up some personal information in exchange for the recognition and benefits that come from belonging. " username=“get12min”]
[bctt tweet=“Membership is about connection and access over privacy and ownership—and not everyone values these the same way.” username=“get12min”]
[bctt tweet="The benefits of ownership center around security, privacy, and control. " username=“get12min”]
[bctt tweet="Right now, however, ownership is dramatically losing favor, while connection is becoming critically important. " username=“get12min”]