Consider the seven ways to price for value in the membership economy, and determine which might work best for your organization.
- Pricing can be hugely stressful…for any executive or entrepreneur,…but it's especially daunting in the membership economy.…Here's why, most membership economy businesses…use a subscription model,…meaning the members pay the same amount…on a fixed schedule in exchange for access…to a set of products and services,…often unlimited access,…but how can you set that fixed price…when you don't know how much your members will consume?…And even more challenging,…when different members are consuming at different rates.…
If I order once a week from Amazon…and you order once a month,…is it fair that we pay the same amount to Amazon Prime?…When pricing subscriptions,…I want you to keep a couple of things in mind.…First, price so that everyone gets more value…than they pay for.…In other words, let's say you and I are both…at the all you can eat buffet.…I eat twice as much as you,…but we both really enjoyed our meals…and still thought the price was fair.…In the end, we're both happy and the restaurant…profited from both of us.…
In this course, Robbie Kellman Baxter—author of The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue—goes into the types of skills required in a membership economy company, why onboarding matters so much in long-term customer relationships, and how to optimize the experience for loyalty. She also outlines pricing for value in the membership economy, when free makes sense, how technology can extend the infrastructure of trust, and best practices for customer success and retention.
- Building the forever transaction, the right organization, and an effective acquisition funnel
- Onboarding members for success
- Starting simple with pricing
- Leaving room in pricing for flexibility
- Using the right technology
- Tracking the right data
- Knowing when to retain members
- Transitioning from idea to going concern
- Recovering from a pricing mistake
- Understanding the difference between loyalty and inertia