In this video, Robbie demonstrates that the membership economy is affecting all types of organizations—corporate and non-profits, digital and traditional, big and small. She encourages learners to look for examples more broadly than just peer organizations of similar size and industry.
- Think of some of the memberships that you've joined. At what point did you open up and decide that this was going to be part of your new normal, that moment when you said, not only am I joining this gem, but I'm going to stay for as long as I live in the area? At the heart of the membership economy is the forever transaction. A forever transaction is that moment when a consumer becomes a member and stops shopping around for a better deal. It's what all organizations want: total loyalty and connection. Members are not only more loyal, they are more willing to cut you slack when you hit a road bump and more likely to encourage friends to join.
To earn this forever transaction, the organization has to make a promise to their members. As long as the member is committed formally to the organization, the organization will continue to evolve its offering and delivery approach to help that member achieve their goals. For example, SurveyMonkey helps people make better decisions using survey tools. The AARP promises to do whatever it takes to improve the quality of life for Americans over 50.
And Birchbox promises women who love makeup the opportunity to discover cool, new products every month. And you can learn from all of these different types of membership economy businesses. Pretty much any organization for which you carry a card, pay a monthly fee, or use a password to access uses similar tactics to build long-term, formal relationships with their customers or members. So here's what I want you to do. Take a piece of paper, fold it in half the long way.
On the left side, make a list of every organization of which you're a member. Think about passwords, subscriptions, and cards. Now, on the right side, describe their forever promise, and finally, think about your own organization. What is your forever promise? Beyond the products or services that you provide, what is the real reason your customers come to you, and the bigger goal you help them achieve?
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