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The Membership Economy
THE MEMBERSHIP ECONOMY
Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue
If you’ve ever used ZipCar, Amazon Prime, Spotify, NetFlix, Groupon, Weight Watchers, SurveyMonkey, United Mileage Plus, Pinterest, Twitter – you are part of The Membership Economy, an increasingly popular model that author Robbie Kellman Baxter sees as the inevitable result of technological advancements, social trends, and a generation in transition.
THE MEMBERSHIP ECONOMY argues that we are now moving away from ownership, but we still want the benefits that come with access. “As individuals grow frustrated with the burdens of owning, caring for and storing too much stuff, they are looking for ways to minimize that stress. They are also experiencing a need for meaningful connection and community.”
The membership-based business is a problem-solver for both businesses and individuals. It spares people from the duties of ownership, and provides a feeling of commonality and affiliation. For businesses, it offers the opportunity to create a “forever customer” who remains loyal and participatory, even as the company shifts and changes. Membership allows for building direct relationships, and continuously generates a data stream that can be tapped for a variety of purposes.
Ultimately, it provides the cache’ of belonging.
Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue
If you’ve ever used ZipCar, Amazon Prime, Spotify, NetFlix, Groupon, Weight Watchers, SurveyMonkey, United Mileage Plus, Pinterest, Twitter – you are part of The Membership Economy, an increasingly popular model that author Robbie Kellman Baxter sees as the inevitable result of technological advancements, social trends, and a generation in transition.
THE MEMBERSHIP ECONOMY argues that we are now moving away from ownership, but we still want the benefits that come with access. “As individuals grow frustrated with the burdens of owning, caring for and storing too much stuff, they are looking for ways to minimize that stress. They are also experiencing a need for meaningful connection and community.”
The membership-based business is a problem-solver for both businesses and individuals. It spares people from the duties of ownership, and provides a feeling of commonality and affiliation. For businesses, it offers the opportunity to create a “forever customer” who remains loyal and participatory, even as the company shifts and changes. Membership allows for building direct relationships, and continuously generates a data stream that can be tapped for a variety of purposes.
Ultimately, it provides the cache’ of belonging.
272 pages, Hardcover
First published February 27, 2015
306 people are currently reading
1672 people want to read
About the author
Robbie Kellman Baxter
6 books82 followersThe author of both The Forever Transaction (2020) and The Membership Economy (2015), Robbie coined the popular business term “Membership Economy”.
Robbie’s expertise with companies in the emerging Membership Economy extends to
include SaaS, media, consumer products, business services, manufacturing and associations.
Robbie Kellman Baxter brings over twenty years of strategy consulting and marketing expertise to Peninsula Strategies, a consulting firm focused on helping companies leverage subscription pricing, digital community and freemium to build deeper relationships with customers. Her clients have included start-ups and mid-sized venture-backed companies as well as industry leaders such as Microsoft, Netflix, Electronic Arts, and The Wall Street Journal.
Peninsula Strategies has advised nearly 100 organizations in over 20 industries on growth
strategy.
A sought-after writer and keynote speaker, Robbie has presented at top universities,
associations and corporations, as well as to corporate boards and leadership teams around the world. Robbie has created and starred in 10 video courses in collaboration with LinkedIn Learning on business topics ranging from innovation to customer success and membership.
Prior to launching Peninsula Strategies, Robbie was a strategy consultant at Booz-Allen, a New York City Urban Fellow and a Silicon Valley product marketer. Robbie received her MBA from the Stanford Graduate School of Business and graduated with honors from Harvard College.
https://www.linkedin.com/in/robbiekel...
https://robbiekellmanbaxter.com/
Robbie’s expertise with companies in the emerging Membership Economy extends to
include SaaS, media, consumer products, business services, manufacturing and associations.
Robbie Kellman Baxter brings over twenty years of strategy consulting and marketing expertise to Peninsula Strategies, a consulting firm focused on helping companies leverage subscription pricing, digital community and freemium to build deeper relationships with customers. Her clients have included start-ups and mid-sized venture-backed companies as well as industry leaders such as Microsoft, Netflix, Electronic Arts, and The Wall Street Journal.
Peninsula Strategies has advised nearly 100 organizations in over 20 industries on growth
strategy.
A sought-after writer and keynote speaker, Robbie has presented at top universities,
associations and corporations, as well as to corporate boards and leadership teams around the world. Robbie has created and starred in 10 video courses in collaboration with LinkedIn Learning on business topics ranging from innovation to customer success and membership.
Prior to launching Peninsula Strategies, Robbie was a strategy consultant at Booz-Allen, a New York City Urban Fellow and a Silicon Valley product marketer. Robbie received her MBA from the Stanford Graduate School of Business and graduated with honors from Harvard College.
https://www.linkedin.com/in/robbiekel...
https://robbiekellmanbaxter.com/
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Displaying 1 - 30 of 89 reviews
March 9, 2015
This book is an important read to anyone who has customers. The key to getting more business from repeat customers is to STOP treating them like customers and START treating them like members.
The Membership Economy is not a book about some esoteric trend in Silicon Valley. It's a practical manual for how any organization can shift from being customer-centric to being member-centric. Anyone who treats their customers like ongoing members and delivers benefits to those members on an ongoing basis (and continually innovates around membership benefits) is sure to win.
This book is a quick read. It's well written and full of tons of practical advice and real-life case studies. Whether you are VP Marketing in a large company, a sole proprietor of a local business, or the head of a non-profit or association, this book is a must read.
The Membership Economy is not a book about some esoteric trend in Silicon Valley. It's a practical manual for how any organization can shift from being customer-centric to being member-centric. Anyone who treats their customers like ongoing members and delivers benefits to those members on an ongoing basis (and continually innovates around membership benefits) is sure to win.
This book is a quick read. It's well written and full of tons of practical advice and real-life case studies. Whether you are VP Marketing in a large company, a sole proprietor of a local business, or the head of a non-profit or association, this book is a must read.
February 9, 2015
With all the success occurring with subscription boxes, Car share programs and being a member of the Hootsuite Ambassador team, I was expecting more from The Membership Economy by Robbie Kellman Baxter.
Maybe my definition of membership is too community-driven and interactive? Robbie does have extensive experience: more than 20 years consulting to NetFlix, Oracle, and Yahoo!, with an MBA from Stanford. It’s an impressive resume.
Let’s look at the book. The Membership Economy is in three sections. What you need to know about the membership economy, membership economy strategies and tactics, and membership organizations come in all shapes and sizes. The first is a multi-chapter introduction to what a membership economy is (a very broad definition, that I agree with). The second looks at what works and doesn’t work for building and managing membership organizations. The end gets to my favorite section and describes the features of membership organizations.
I suppose I feel disappointed in the details. The book has a lot of information, but not that much is that useful. We hear a lot about NetFlix, but it’s all very surface-level anecdotes. Most of the research for this book comes from Robbie’s personal conversations with her clients at these companies. I am fine with that as a base if it supplemented with deeper, detailed research. Perhaps she was trying not to offend, or breach privacy, but it just makes the book miss. There are a few statistics. I make a note of one. It stood out because there are so few. Am I just too demanding? There was one very detailed case study of Survey Monkey in the third section. Unfortunately, it was reminiscent of Rita Skeeter’s reporting. I’m not sure we need to know the exact location of their office. It could have included stronger company cases than just what’s easy.
Another concern is the age of the information. It feels rather out-of-date. There’s minimal mention of online or individual connections with members, so missing the whole community element. The statement, “Advertising as a business model, has called out of favor”, was also a little concerning. It’s not out of favor. Mass advertising is out of favor. Updating the terminology could also help. I’m not sure the last time I heard the term superuser, for ambassadors or members.
What I liked in The Membership Economy
Eek, that makes it sound all bad. There is an audience for this book, but more on that later. What did I like? There was a great example of the Caesars Entertainment discretionary fund for their team to make their members’ stays amazing.
I also should acknowledge that I was reading a Kindle copy from NetGalley, courtesy of McGraw-Hill and the formatting was horrible. I’ve tried to not let that influence me, but line breaks in the middle of nearly every line made it difficult to read. I’m sure Robbie did not submit the manuscript with that in it.
Who is The Membership Economy For?
As promised, there is an audience for this. The Hospice Set. It’s a term I use for marketers nearing the end of their careers. They like to think they’re still learning, but they only want light and fluffy to make them feel better. The same as with a hospice patient and you’re making them comfortable while waiting. There’s very little you can take away from this and apply, but if you’re fine with that, go ahead.
Originally published at: http://tapdancingspiders.com/book-rev...
Maybe my definition of membership is too community-driven and interactive? Robbie does have extensive experience: more than 20 years consulting to NetFlix, Oracle, and Yahoo!, with an MBA from Stanford. It’s an impressive resume.
Let’s look at the book. The Membership Economy is in three sections. What you need to know about the membership economy, membership economy strategies and tactics, and membership organizations come in all shapes and sizes. The first is a multi-chapter introduction to what a membership economy is (a very broad definition, that I agree with). The second looks at what works and doesn’t work for building and managing membership organizations. The end gets to my favorite section and describes the features of membership organizations.
I suppose I feel disappointed in the details. The book has a lot of information, but not that much is that useful. We hear a lot about NetFlix, but it’s all very surface-level anecdotes. Most of the research for this book comes from Robbie’s personal conversations with her clients at these companies. I am fine with that as a base if it supplemented with deeper, detailed research. Perhaps she was trying not to offend, or breach privacy, but it just makes the book miss. There are a few statistics. I make a note of one. It stood out because there are so few. Am I just too demanding? There was one very detailed case study of Survey Monkey in the third section. Unfortunately, it was reminiscent of Rita Skeeter’s reporting. I’m not sure we need to know the exact location of their office. It could have included stronger company cases than just what’s easy.
Another concern is the age of the information. It feels rather out-of-date. There’s minimal mention of online or individual connections with members, so missing the whole community element. The statement, “Advertising as a business model, has called out of favor”, was also a little concerning. It’s not out of favor. Mass advertising is out of favor. Updating the terminology could also help. I’m not sure the last time I heard the term superuser, for ambassadors or members.
What I liked in The Membership Economy
Eek, that makes it sound all bad. There is an audience for this book, but more on that later. What did I like? There was a great example of the Caesars Entertainment discretionary fund for their team to make their members’ stays amazing.
I also should acknowledge that I was reading a Kindle copy from NetGalley, courtesy of McGraw-Hill and the formatting was horrible. I’ve tried to not let that influence me, but line breaks in the middle of nearly every line made it difficult to read. I’m sure Robbie did not submit the manuscript with that in it.
Who is The Membership Economy For?
As promised, there is an audience for this. The Hospice Set. It’s a term I use for marketers nearing the end of their careers. They like to think they’re still learning, but they only want light and fluffy to make them feel better. The same as with a hospice patient and you’re making them comfortable while waiting. There’s very little you can take away from this and apply, but if you’re fine with that, go ahead.
Originally published at: http://tapdancingspiders.com/book-rev...
September 10, 2021
A well-researched look at how membership organizations have succeeded, and how to replicate that success. There are plenty of examples, and good summaries make it easy to digest. It's clear that Baxter has a lot of experience working with membership organizations. I felt I needed to work too hard to glean the lessons from the fairly long examples; they could've been distilled to save the reader time.
Baxter defines membership as being formally engaged with an organization or group on an ongoing basis. In a membership, the organization builds relationships with members. Memberships may involve subscriptions, community, and communication, but those things alone don't make a membership.
I much preferred The Automatic Customer to this book, but maybe that's because that book is specifically about building a subscription business, and this one has the broader scope of membership organizations.
What You Need to Know About the Membership Economy
A subscription is a financial arrangement; a membership is a sense of belonging to a community, and having the organization tailor its offerings to your preferences.
Benefits to organizations
1. Creates recurring revenue and removes lumpiness.
2. Builds a more direct relationship that strengthens the brand, by putting customer at center.
3. Generates data that can be used to improve services.
Ideally, members engage with each other so all benefit from the thoughts, experiences, opinions of others.
Membership Economy Strategies and Tactics
Replace customer support with customer success. Empower frontline staff to take good care of members. Be more consultative to build loyalty. Be personal, build relationships. Goal is to maximize loyalty, not just minimize anger.
Onboarding
• Welcome: make sure they know what they signed up for. Thank them for joining.
• Engage immediately. Provide initial value. Use gamification to encourage behaviors. Connect with other community members.
• Ask for feedback. Contact within first week.
• Give feedback. Tell how they compare to other members. Point out new customer's unique strengths.
• Ask for referrals. Encourage to invite friends in the first 30 days.
• Transition to nurturing. Give info to help optimize experience and connect. Communicate consistently.
Pricing
Most organizations have 3 pricing options, based on research that most people prefer to have options, and majority choose middle option.
Annual payment is best for many organizations because it locks in longer terms, but this changes customer's decision from impulse or low consideration to thoughtful, considered decision. Once they rethink purchase, they may cancel.
Offer a la carte services, but don't put out-of-the-ordinary one-time services into a higher-level ongoing tier, because customers may feel cheated for being forced into an ongoing commitment for a one-time need, or may game the system by upgrading for just one month.
When raising prices, grandfather current members, to avoid backlash and build stickiness. Add higher tiers with more benefits. If you must raise prices on current members, be transparent. You can also add and remove a la carte services.
Nearly every company benefits from offering options and different levels for different segments of members. Build options based on the objectives of segments.
Consider these levers in structuring tiers:
• Volume (content, users, account, time, interactions)
• Duration (longer access)
• Features (products, tools)
• Service (support, customization, implementation, removal of annoyances such as ads)
Discounting should only be done to get people to try product long enough to commit to a full price, or if alternative is losing customer.
Free
Don't offer a free trial that doesn't to provide the full experience. This gives an inaccurate and negative impression. If you fear customer will fill their need with free trial and not pay for full, create a short-term paid membership option.
Don't offer premium option when there's no interaction between users (such as accounting or security apps) since there's no potential for viral marketing or network effects.
How to Retain Members
When members help others get up to speed, they become more loyal themselves (e.g., user groups).
To increase loyalty, increase engagement
• Periodically give something extra.
• Allow them to connect to you personally.
• Incorporate incremental setup to make switching cost seem high.
• Connect members to each other, to help each other.
• Invite members to create content for community.
• Use newsletters and messages to tell members how to get more value.
• Ask members for ideas and advice.
Members are more reluctant to cancel when they achieve status, have customized experience, build relationships, or have a grandfathered benefits or discounts.
Cancellation must be easy and clear, or they will complain to you and anyone who will listen. Also, people are more likely to sign up again if it's easy to cancel.
Let canceling members have a free subscription of some kind - something that lets them remain part of the family.
Membership Organizations Come in All Shapes and Sizes
When it decided to raise prices, SurveyMonkey kept annual subscription the same price ($200) but raised monthly price by 20%, motivating best customers to switch to annual. It also added 2 higher-priced tiers at $300 and $800. Some customers upgraded, but majority of high tier users were new.
SaaS companies can share data (collected by systems or surveys) with customers, or offer advice on making better decisions in certain verticals.
Try to keep subscriptions at same price. Difficult to raise a subscription price without adding benefits.
Many subscription organizations have found annual payments have a net positive effect on retention and revenues.
When first starting a subscription business, start with a single offering because it's less confusing and leaves room for adjusting price.
Baxter defines membership as being formally engaged with an organization or group on an ongoing basis. In a membership, the organization builds relationships with members. Memberships may involve subscriptions, community, and communication, but those things alone don't make a membership.
I much preferred The Automatic Customer to this book, but maybe that's because that book is specifically about building a subscription business, and this one has the broader scope of membership organizations.
What You Need to Know About the Membership Economy
A subscription is a financial arrangement; a membership is a sense of belonging to a community, and having the organization tailor its offerings to your preferences.
Benefits to organizations
1. Creates recurring revenue and removes lumpiness.
2. Builds a more direct relationship that strengthens the brand, by putting customer at center.
3. Generates data that can be used to improve services.
Ideally, members engage with each other so all benefit from the thoughts, experiences, opinions of others.
Membership Economy Strategies and Tactics
Replace customer support with customer success. Empower frontline staff to take good care of members. Be more consultative to build loyalty. Be personal, build relationships. Goal is to maximize loyalty, not just minimize anger.
Onboarding
• Welcome: make sure they know what they signed up for. Thank them for joining.
• Engage immediately. Provide initial value. Use gamification to encourage behaviors. Connect with other community members.
• Ask for feedback. Contact within first week.
• Give feedback. Tell how they compare to other members. Point out new customer's unique strengths.
• Ask for referrals. Encourage to invite friends in the first 30 days.
• Transition to nurturing. Give info to help optimize experience and connect. Communicate consistently.
Pricing
Most organizations have 3 pricing options, based on research that most people prefer to have options, and majority choose middle option.
Annual payment is best for many organizations because it locks in longer terms, but this changes customer's decision from impulse or low consideration to thoughtful, considered decision. Once they rethink purchase, they may cancel.
Offer a la carte services, but don't put out-of-the-ordinary one-time services into a higher-level ongoing tier, because customers may feel cheated for being forced into an ongoing commitment for a one-time need, or may game the system by upgrading for just one month.
When raising prices, grandfather current members, to avoid backlash and build stickiness. Add higher tiers with more benefits. If you must raise prices on current members, be transparent. You can also add and remove a la carte services.
Nearly every company benefits from offering options and different levels for different segments of members. Build options based on the objectives of segments.
Consider these levers in structuring tiers:
• Volume (content, users, account, time, interactions)
• Duration (longer access)
• Features (products, tools)
• Service (support, customization, implementation, removal of annoyances such as ads)
Discounting should only be done to get people to try product long enough to commit to a full price, or if alternative is losing customer.
Free
Don't offer a free trial that doesn't to provide the full experience. This gives an inaccurate and negative impression. If you fear customer will fill their need with free trial and not pay for full, create a short-term paid membership option.
Don't offer premium option when there's no interaction between users (such as accounting or security apps) since there's no potential for viral marketing or network effects.
How to Retain Members
When members help others get up to speed, they become more loyal themselves (e.g., user groups).
To increase loyalty, increase engagement
• Periodically give something extra.
• Allow them to connect to you personally.
• Incorporate incremental setup to make switching cost seem high.
• Connect members to each other, to help each other.
• Invite members to create content for community.
• Use newsletters and messages to tell members how to get more value.
• Ask members for ideas and advice.
Members are more reluctant to cancel when they achieve status, have customized experience, build relationships, or have a grandfathered benefits or discounts.
Cancellation must be easy and clear, or they will complain to you and anyone who will listen. Also, people are more likely to sign up again if it's easy to cancel.
Let canceling members have a free subscription of some kind - something that lets them remain part of the family.
Membership Organizations Come in All Shapes and Sizes
When it decided to raise prices, SurveyMonkey kept annual subscription the same price ($200) but raised monthly price by 20%, motivating best customers to switch to annual. It also added 2 higher-priced tiers at $300 and $800. Some customers upgraded, but majority of high tier users were new.
SaaS companies can share data (collected by systems or surveys) with customers, or offer advice on making better decisions in certain verticals.
Try to keep subscriptions at same price. Difficult to raise a subscription price without adding benefits.
Many subscription organizations have found annual payments have a net positive effect on retention and revenues.
When first starting a subscription business, start with a single offering because it's less confusing and leaves room for adjusting price.
February 18, 2015
Do you have customers - transient or regular - or do you have members, people who feel they have a connection to your business and the products or services that you offer? The so-called “Membership Economy” is a fairly modern constructive term, yet it hardly seems so new. Technology has just made it perhaps more prevalent, more accessible and more in-your-face.
Maybe you’re a member and haven’t realised it? The distinction can be lost, especially in the digital world. You can be a customer of Amazon (and member of its online service) but you are a member of Amazon Prime. Yet the concept can be more than just a subscription. Maybe it depends on what you are a member of and how you utilise your membership? A book such as this promises to explain the mystery which is, the author contends, the inevitable result of technological advancements, social trends, and a generation in transition.
The author argues that we are willingly moving away from the concept of ownership yet we still want the benefits of access, a feeling of ownership or community. There is pushback too and even a renaissance in owning physical things. Who knows what will win. Human nature shows we are prone to collecting things… Yet to a company, if you have the right product and service the concept of transitioning your customers to being members, a source of regular income and ever-closer relationships is an attractive concept. It can require more work than you might imagine and the customer can be fickle, loyal for a time and then quick to switch their affections to another suitor as required.
All the buzzwords can be brought under one roof. It is up to you to make something out of it all! There is more to building a “sticky relationship” than just acting as a glorified shop selling dubious member benefits and posting an questionably engaging, one-sided stream of curated content via social media. Customers, or members, are not necessarily as dumb as many assume.
The author presents an interesting, pragmatic and provoking look at what is undoubtedly a topic that is gathering traction. Are we as a society as connected as we want to be? We arguably are cutting other ties, becoming often more insular and yet we crave social acceptance and connection through social media. It can seem curious that we shun one form of connectivity in favour of a less concrete, more virtual form.
Yet is there a difference? Is membership and subscription so interchangeable? According to the author: “Membership is an attitude, an emotion. A subscription is a financial arrangement. It's quite possible to be both a subscription and a membership organization. In fact, the membership economy is the logical extension of subscriptions. Many membership economy organizations don't see themselves as membership. They say, “We have a subscription business.” Or “We're a sharing business.” Or “We're a transactional company with an affinity programme.” Or “We're a social network.” Sometimes they say that membership organizations must be mission-driven non-profits or about connections among members.”
The author disagrees, noting that this is not true. Of course simple subscription benefits can exist but a lot of the value of membership can come through shared data and community feedback, such as how Netflix analyses its members' behaviour to provide recommendations of other films. Some members enthusiastically use and embrace the membership benefits. Others just consume the product.
There is a lot more of this straightforward thinking and analysis. The book manages to provide a fresh perspective on a developing subject. It might be a good strategic read for you and for your company!
The Membership Economy, written by Robbie Kellman Baxter and published by McGraw-Hill Professional. ISBN 9780071839327, 288 pages. YYYY
Maybe you’re a member and haven’t realised it? The distinction can be lost, especially in the digital world. You can be a customer of Amazon (and member of its online service) but you are a member of Amazon Prime. Yet the concept can be more than just a subscription. Maybe it depends on what you are a member of and how you utilise your membership? A book such as this promises to explain the mystery which is, the author contends, the inevitable result of technological advancements, social trends, and a generation in transition.
The author argues that we are willingly moving away from the concept of ownership yet we still want the benefits of access, a feeling of ownership or community. There is pushback too and even a renaissance in owning physical things. Who knows what will win. Human nature shows we are prone to collecting things… Yet to a company, if you have the right product and service the concept of transitioning your customers to being members, a source of regular income and ever-closer relationships is an attractive concept. It can require more work than you might imagine and the customer can be fickle, loyal for a time and then quick to switch their affections to another suitor as required.
All the buzzwords can be brought under one roof. It is up to you to make something out of it all! There is more to building a “sticky relationship” than just acting as a glorified shop selling dubious member benefits and posting an questionably engaging, one-sided stream of curated content via social media. Customers, or members, are not necessarily as dumb as many assume.
The author presents an interesting, pragmatic and provoking look at what is undoubtedly a topic that is gathering traction. Are we as a society as connected as we want to be? We arguably are cutting other ties, becoming often more insular and yet we crave social acceptance and connection through social media. It can seem curious that we shun one form of connectivity in favour of a less concrete, more virtual form.
Yet is there a difference? Is membership and subscription so interchangeable? According to the author: “Membership is an attitude, an emotion. A subscription is a financial arrangement. It's quite possible to be both a subscription and a membership organization. In fact, the membership economy is the logical extension of subscriptions. Many membership economy organizations don't see themselves as membership. They say, “We have a subscription business.” Or “We're a sharing business.” Or “We're a transactional company with an affinity programme.” Or “We're a social network.” Sometimes they say that membership organizations must be mission-driven non-profits or about connections among members.”
The author disagrees, noting that this is not true. Of course simple subscription benefits can exist but a lot of the value of membership can come through shared data and community feedback, such as how Netflix analyses its members' behaviour to provide recommendations of other films. Some members enthusiastically use and embrace the membership benefits. Others just consume the product.
There is a lot more of this straightforward thinking and analysis. The book manages to provide a fresh perspective on a developing subject. It might be a good strategic read for you and for your company!
The Membership Economy, written by Robbie Kellman Baxter and published by McGraw-Hill Professional. ISBN 9780071839327, 288 pages. YYYY
February 24, 2015
I love Robbie Kellman Baxter's new book. The content is outstanding and exceptionally relevant. Ever wonder why there are multitudes of Silicon Valley start-ups that are using membership and community in their core business models? This book not only explains why, it shows you how. For those of us in the membership economy this book is a milestone, codifying the framework and designating the era in business terms that are easy to understand, grasp, and implement.
I am the founder of AssociationTransformation.com - a community of membership CEOs focused on innovation. Robbie and her book have found enormous resonance within my community, bringing together the leaders of some of America's largest and most esteemed associations to take advantage of the knowledge, experience, expertise and know-how Baxter has captured in this important book.
I will share the book with anyone who wants to understand why membership is contemporary, important, and a business engine for our kind of organization. If the future of business interests you, you must read this book. I will be buying multiple copies to share with my CEOs and their Boards of Directors, partners, and allies. This book gives a solid glimpse of the important trends our future is built on. Thank you, Robbie Kellman Baxter.
I am the founder of AssociationTransformation.com - a community of membership CEOs focused on innovation. Robbie and her book have found enormous resonance within my community, bringing together the leaders of some of America's largest and most esteemed associations to take advantage of the knowledge, experience, expertise and know-how Baxter has captured in this important book.
I will share the book with anyone who wants to understand why membership is contemporary, important, and a business engine for our kind of organization. If the future of business interests you, you must read this book. I will be buying multiple copies to share with my CEOs and their Boards of Directors, partners, and allies. This book gives a solid glimpse of the important trends our future is built on. Thank you, Robbie Kellman Baxter.
January 3, 2021
'Private' clubs are now bigger than many countries of the world. Take Netflix as example with 195 million paid subscribers, it is roughly the size of Germany, France, and the United Kingdom combined.
Are you a member of Spotify, Amazon Prime, Apple services, more? Membership economics have displaced purchase economics. Boxed software is no longer boxed, it sold in monthly subscription 'dues'.
Netflix is also worth a market cap in Jan 2020 of roughly $240 billion dollars, the ABC network is comparison is estimated to have a value of $1.5-2.5 billion. This examples shows just how radically advertising as a business model had been eclipsed by access. However, this membership model leaves out much of the world from access, though the quality of the content is most certainly reflective of those same economics.
This book is now 5 years old and many of the examples cited have not aged well, but such is the nature of internet commerce. Nonetheless the lessons embodied in navigating the membership economy as a consumer, investor, and business person make the book well worth your read.
Are you a member of Spotify, Amazon Prime, Apple services, more? Membership economics have displaced purchase economics. Boxed software is no longer boxed, it sold in monthly subscription 'dues'.
Netflix is also worth a market cap in Jan 2020 of roughly $240 billion dollars, the ABC network is comparison is estimated to have a value of $1.5-2.5 billion. This examples shows just how radically advertising as a business model had been eclipsed by access. However, this membership model leaves out much of the world from access, though the quality of the content is most certainly reflective of those same economics.
This book is now 5 years old and many of the examples cited have not aged well, but such is the nature of internet commerce. Nonetheless the lessons embodied in navigating the membership economy as a consumer, investor, and business person make the book well worth your read.
April 23, 2015
Thorough Discussion of A Big Idea
The membership approach is huge and both very new--disrupting industry after industry--and very old (think churches and guilds).
If you aren't looking at this approach, probably one of your competitors is. And membership doesn't do well as a bolted on extra option. To work, the entire organization needs to be focused on real community and the members.
Very important topic. But I give four not five stars because this book is written like a textbook. It's wordy and dry and has a silly glossary and index at the end. But still a meaningful read with lots of examples.
The membership approach is huge and both very new--disrupting industry after industry--and very old (think churches and guilds).
If you aren't looking at this approach, probably one of your competitors is. And membership doesn't do well as a bolted on extra option. To work, the entire organization needs to be focused on real community and the members.
Very important topic. But I give four not five stars because this book is written like a textbook. It's wordy and dry and has a silly glossary and index at the end. But still a meaningful read with lots of examples.
April 23, 2015
The membership approach is huge and both very new--disrupting industry after industry--and very old (think churches and guilds).
If you aren't looking at this approach, probably one of your competitors is. And membership doesn't do well as a bolted on extra option. To work, the entire organization needs to be focused on real community and the members.
Very important topic. But I give four not five stars because this book is written like a textbook. It's wordy and dry and has a silly glossary and index at the end. But still a meaningful read with lots of examples.
If you aren't looking at this approach, probably one of your competitors is. And membership doesn't do well as a bolted on extra option. To work, the entire organization needs to be focused on real community and the members.
Very important topic. But I give four not five stars because this book is written like a textbook. It's wordy and dry and has a silly glossary and index at the end. But still a meaningful read with lots of examples.
May 11, 2016
Honestly, there is nothing new here. This book is about 5 years too late. It might be of value for someone who doesn't spend a bunch of time thinking about, and working in, tech space, or a person who is completely uninformed about how companies like Netflix have built their businesses. The content wasn't poorly written, it was just unoriginal and untimely.
June 28, 2015
Good overview of how membership model works. Several well-known examples and hands-on advices for different kinds of organisations
September 12, 2018
I am not a membership economy kind of guy. I hate feeling pushed into communities and memberships. Years ago when my grocery store adopted customer loyalty cards I immediately switched to a different store, when that one also adopted them I switched again, now the third store has also finally adopted customer loyalty cards as well and I’m trapped. I’m old enough to remember when you could get items that were on sale at the sale price without needing some stupid card. I drives me nuts that I have to give Safeway my phone number just so I can save 37 cents on my bag of Doritos.
But these customer loyalty programs, which frequently feel so crudely manipulative, actually work, because people are idiots with an inborn herd mentality. In The Membership Economy, Robbie Baxter explains how you can exploit this herd mentality to milk cash from your customers.
Ok. I can see I’m being too harsh. The whole concept of the membership economy goes against my grain (with the exception of business where a membership model makes perfect sense, like Costco, Netflix, or Amazon Prime). I want as little contact with the company selling me something as possible (unless I have a problem. In that case, please talk to me). I’m just not the target for the membership economy, and Baxter admits that not everyone is. But for many people, apparently, feeling like you are part of something larger, feeling you belong in some way, is essential to their customer satisfaction when they purchase a carton of Tide Pods.
The fact is, the membership economy is here to stay, and because the company I work for wants to get better at navigating through this brave new world, I picked up this audiobook and found it to be somewhat informative and helpful with some useful tips and insights. A good customer experience program should leave a customer happy, and there are some ideas here that can help achieve that goal. It’s a useful book, I suppose,but in no way engaging to read, and I’m opposed to this movement to force consumers into the membership economy because as a consumer I personally want no part of it.
But these customer loyalty programs, which frequently feel so crudely manipulative, actually work, because people are idiots with an inborn herd mentality. In The Membership Economy, Robbie Baxter explains how you can exploit this herd mentality to milk cash from your customers.
Ok. I can see I’m being too harsh. The whole concept of the membership economy goes against my grain (with the exception of business where a membership model makes perfect sense, like Costco, Netflix, or Amazon Prime). I want as little contact with the company selling me something as possible (unless I have a problem. In that case, please talk to me). I’m just not the target for the membership economy, and Baxter admits that not everyone is. But for many people, apparently, feeling like you are part of something larger, feeling you belong in some way, is essential to their customer satisfaction when they purchase a carton of Tide Pods.
The fact is, the membership economy is here to stay, and because the company I work for wants to get better at navigating through this brave new world, I picked up this audiobook and found it to be somewhat informative and helpful with some useful tips and insights. A good customer experience program should leave a customer happy, and there are some ideas here that can help achieve that goal. It’s a useful book, I suppose,but in no way engaging to read, and I’m opposed to this movement to force consumers into the membership economy because as a consumer I personally want no part of it.
December 28, 2020
My first business book that I've actually enjoyed!
I has to relate to people somehow and it did. It was all about community building through today's technologies, analysis of big and small companies that build it around the membership economy model.
Thoughts to consider:
* Inertia≠loyalty
* Community itself is valuable
* invite your teams to consider how you'd crush your company.
I has to relate to people somehow and it did. It was all about community building through today's technologies, analysis of big and small companies that build it around the membership economy model.
Thoughts to consider:
* Inertia≠loyalty
* Community itself is valuable
* invite your teams to consider how you'd crush your company.
March 15, 2020
For anyone new and considering membership or subscription based business models, this is a foundational must read.
February 10, 2016
Recurring revenue is part of THE MEMBERSHIP ECONOMY, a dreamy business model for entrepreneurs that doesn’t work unless it creates a sense of community through generating value for customers and consequently, loyalty.
Indeed, “The membership economy is all about putting the customer at the center of the business model, rather than the product or the transaction.” As customers move from ownership to membership.
To implement this system could be a challenge, especially for companies that already have an ownership model. It doesn’t matter if it’s online, or offline, or a mix, the transition can be hard and has to be well managed to keep the customers. Furthermore, THE MEMBERSHIP ECONOMY explains advantages of this model and also points out disadvantages as data management and privacy.
THE MEMBERSHIP ECONOMY is perfect reading to get the idea, how it works, examples, pros and cons, etc., before hiring an expert. Furthermore, as a professional to keep current with the times at the job market.
Indeed, “The membership economy is all about putting the customer at the center of the business model, rather than the product or the transaction.” As customers move from ownership to membership.
To implement this system could be a challenge, especially for companies that already have an ownership model. It doesn’t matter if it’s online, or offline, or a mix, the transition can be hard and has to be well managed to keep the customers. Furthermore, THE MEMBERSHIP ECONOMY explains advantages of this model and also points out disadvantages as data management and privacy.
THE MEMBERSHIP ECONOMY is perfect reading to get the idea, how it works, examples, pros and cons, etc., before hiring an expert. Furthermore, as a professional to keep current with the times at the job market.
May 20, 2015
In her book Baxter provides an online business roadmap that is packed with step-by-step digital strategies, useful resources, and case studies of super successful dot-com companies. The goal of the book is to show you how to get the most revenue from your online product, create an engaged community of customers, place your revenue on autopilot, and create sustainable loyalty programs. The book is written so that you may jump in and out where needed.
For your convenience, we had Robbie Baxter on our podcast, The Entrepreneurs Library, to give a deep dive on The Membership Economy. With Robbie’s experience she gives amazing insight on how to master the business of subscription-based products and services. If you would like to get a more in-depth look from the author herself check out episode 224 on the EL website or you can find the show on iTunes.
For your convenience, we had Robbie Baxter on our podcast, The Entrepreneurs Library, to give a deep dive on The Membership Economy. With Robbie’s experience she gives amazing insight on how to master the business of subscription-based products and services. If you would like to get a more in-depth look from the author herself check out episode 224 on the EL website or you can find the show on iTunes.
July 13, 2015
A very thorough book about membership services and businesses.
I learned a lot while reading it that is useful to me both as a consumer and as a potential membership business sales rep.
Memberships have been around forever and give people a sense of belonging and comfort.
With advanced technology the membership concepts has changed. It is becoming more of a contract relationship.
Opportunities are opening up daily!
I would have preferred to read this book and discussed with members of my business team.
It is a lot to absorb alone. Because of that I will be referring back to it and rereading in smaller sections.
I did received a copy in exchange for my honest review.
I learned a lot while reading it that is useful to me both as a consumer and as a potential membership business sales rep.
Memberships have been around forever and give people a sense of belonging and comfort.
With advanced technology the membership concepts has changed. It is becoming more of a contract relationship.
Opportunities are opening up daily!
I would have preferred to read this book and discussed with members of my business team.
It is a lot to absorb alone. Because of that I will be referring back to it and rereading in smaller sections.
I did received a copy in exchange for my honest review.
January 18, 2016
I'm a startup founder and one of the many in search of the 'forever transaction'. This book lays out the fundamental principles of creating a community where your current and potential customers feel like they belong and develop loyalty to your brand.
One of my favorite aspects of the Membership Economy is that it doesn't just prescribe a 5-step checklist that will work for every business. Instead, the book gives several different examples and applications to try.
Bottom line: Insightful and timely read for creating a recurring revenue stream.
One of my favorite aspects of the Membership Economy is that it doesn't just prescribe a 5-step checklist that will work for every business. Instead, the book gives several different examples and applications to try.
Bottom line: Insightful and timely read for creating a recurring revenue stream.
September 12, 2015
Enjoyed this great book
Really enjoyed his great book on the value of membership and how to truly drive value from members, rather than being focused on the process of extracting revenue from customers. The key factor for me was finding your super users and developing your community. Also, the focus on the members you have today and providing them the platform to grow your community.
Really enjoyed his great book on the value of membership and how to truly drive value from members, rather than being focused on the process of extracting revenue from customers. The key factor for me was finding your super users and developing your community. Also, the focus on the members you have today and providing them the platform to grow your community.
June 28, 2017
To stay competitive in a membership-oriented business world, you need more than a basic company homepage; your whole organization needs to be built around the concept! If you fully commit to a membership model, put the right strategy in place to gain and retain members, appropriately price your product and track user behavior, your business will prosper.
June 22, 2015
Wondeful book - as someone running an online subscription business, she hit the nail right on the head. I made so many notes, and have been executing a lot of the ideas she raised already. Top book if you're in the field.
January 30, 2021
A lot of the book is devoted to convincing the reader that incorporating membership strategies is valuable for most businesses. There’s a lack of practical advice on how to do this and the last 1/2 of the book seems to drag on.
February 23, 2015
Loved this book. It is easy to read, informative, and contains many examples and case studies.
August 4, 2015
Interesting, probably more applicable to for-profit companies than a public library. But the author has great information and points to ponder for anyone running an organization.
April 21, 2018
Robbie came to speak to the Office team in January. She challenged us to find creative ways to build a sense of community and membership among our Office users.
June 13, 2023
"The Membership Economy" is a thought-provoking exploration of the shift from ownership to membership in various aspects of our lives. From Uber and Netflix to LinkedIn and Peloton, Robbie Kellman Baxter (RKB) presents compelling arguments about the profound impact of the membership economy, likening it to the Industrial Revolution.
Main Ideas:
The book emphasizes the importance of creating a "forever transaction" in your business. Once a customer signs up, they should consistently receive a great experience without having to enter their payment information again. They should enjoy being a part of your community and grow within it over time.
RKB suggests that success in the modern economy involves a move from ownership to access, from anonymous transactions to known, recognized relationships, and from one-way messaging to two-way communications. This shift requires a mindset that values solving problems over selling products.
Pros:
1. The book provides valuable insights into the shift from ownership to membership, offering a fresh perspective on customer relationships and business models.
2. It offers practical advice on creating a successful membership company, emphasizing the importance of community and ongoing customer engagement.
3. The book is filled with real-world examples, making the concepts more relatable and easier to understand.
Cons:
1. The book's focus on membership might not resonate with businesses operating on different models or industries where membership isn't feasible.
2. Some readers might find the book's emphasis on the membership economy as a revolutionary concept a bit overstated.
Additional Insights:
The author highlights the importance of onboarding in the membership economy, comparing it to employee onboarding. She suggests that putting as much effort into a new customer as into bringing a new employee onboard can lead to stronger recurring revenue and a self-feeding customer funnel.
The book also underscores the importance of avoiding the "electric fence" approach to loyalty, where customers are gated in and find it too expensive to leave. Instead, businesses should strive to attract people and keep them loyal through the value they provide.
"The Membership Economy" is a must-read for business leaders, marketers, and anyone interested in understanding the shift from ownership to membership and how to leverage it for business success.
Main Ideas:
The book emphasizes the importance of creating a "forever transaction" in your business. Once a customer signs up, they should consistently receive a great experience without having to enter their payment information again. They should enjoy being a part of your community and grow within it over time.
RKB suggests that success in the modern economy involves a move from ownership to access, from anonymous transactions to known, recognized relationships, and from one-way messaging to two-way communications. This shift requires a mindset that values solving problems over selling products.
Pros:
1. The book provides valuable insights into the shift from ownership to membership, offering a fresh perspective on customer relationships and business models.
2. It offers practical advice on creating a successful membership company, emphasizing the importance of community and ongoing customer engagement.
3. The book is filled with real-world examples, making the concepts more relatable and easier to understand.
Cons:
1. The book's focus on membership might not resonate with businesses operating on different models or industries where membership isn't feasible.
2. Some readers might find the book's emphasis on the membership economy as a revolutionary concept a bit overstated.
Additional Insights:
The author highlights the importance of onboarding in the membership economy, comparing it to employee onboarding. She suggests that putting as much effort into a new customer as into bringing a new employee onboard can lead to stronger recurring revenue and a self-feeding customer funnel.
The book also underscores the importance of avoiding the "electric fence" approach to loyalty, where customers are gated in and find it too expensive to leave. Instead, businesses should strive to attract people and keep them loyal through the value they provide.
"The Membership Economy" is a must-read for business leaders, marketers, and anyone interested in understanding the shift from ownership to membership and how to leverage it for business success.
October 7, 2019
Consumers are not passive buyers, they crave membership if loyalty to Uber/Lyft, Netflix, and Amazon Prime are any indication. Chances are you're curious about these businesses. What's their secret? Do members help create profit? In THE MEMBERSHIP ECONOMY, Baxter uses her experience to explore different models to discuss the benefits and pitfalls any business faces as they consider exploring a membership-driven company. Will these strategies work for your business? It depends on the business and its culture.
This is not a business title with photocopy worksheets, it causes the reader to pause and think. Don't worry, it's not a dense tome. Baxter has scattered many nice summary charts throughout to help explain key concepts and summarizes with a list at the close of each chapter.
THE MEMBERSHIP ECONOMY can help a business think about how they can move toward a membership driven model. While businesses and tech that were du jour in 2015 may become dated in 2019 and beyond, there are solid concepts here that can continue to help businesses. It's a book that deserves a second reading when the company is ready to commit and work to building loyal and passionate members.
I received an eARC of this title from NetGalley in exchange for a review. The FTC wants you to know.
This is not a business title with photocopy worksheets, it causes the reader to pause and think. Don't worry, it's not a dense tome. Baxter has scattered many nice summary charts throughout to help explain key concepts and summarizes with a list at the close of each chapter.
THE MEMBERSHIP ECONOMY can help a business think about how they can move toward a membership driven model. While businesses and tech that were du jour in 2015 may become dated in 2019 and beyond, there are solid concepts here that can continue to help businesses. It's a book that deserves a second reading when the company is ready to commit and work to building loyal and passionate members.
I received an eARC of this title from NetGalley in exchange for a review. The FTC wants you to know.
March 17, 2020
How many times have I heard a leader tell me, wistfully, that what they really need is “recurring revenue”?
For me, the answer is “a lot.” And I have come to recommend The Membership Economy in response. The Membership Economy is the seminal articulation of the membership business model.
The Forever Transaction is even more useful. With her extraordinary ability to simplify the complex, Robbie uses this book to “teach you how to fish”, for those seeking to create and amplify membership as a model for recurring revenue and loyalty. The super practical pro-tips (e.g. how to select the team lead) are immediately implementable. And the overarching framework really gave me the scaffolding to understand and embrace the model.
It’s rare that a book can be so profoundly useful while also being entertaining and enjoyable to read. This book delivers both in spades. I cannot recommend The Forever Transaction highly enough.
For me, the answer is “a lot.” And I have come to recommend The Membership Economy in response. The Membership Economy is the seminal articulation of the membership business model.
The Forever Transaction is even more useful. With her extraordinary ability to simplify the complex, Robbie uses this book to “teach you how to fish”, for those seeking to create and amplify membership as a model for recurring revenue and loyalty. The super practical pro-tips (e.g. how to select the team lead) are immediately implementable. And the overarching framework really gave me the scaffolding to understand and embrace the model.
It’s rare that a book can be so profoundly useful while also being entertaining and enjoyable to read. This book delivers both in spades. I cannot recommend The Forever Transaction highly enough.
April 2, 2023
Membership economy is an increasingly popular model that results from technological advancements, social trends and a generation in transition. Below are my takeaways:
- Members need to feel connected to the organization and to one another.
- Membership economy is like a marriage - with expectation that members will remain loyal forever. However, just like marriages, it is about relationships, not transactions, and both sides will grow and change overtime.
- Build loyalty through personalization of the experience
- If we can identify you, we can personalize the services and create better experiences.
- People want to be connected. They want to share and to engage with others, and the digital world is often a faster, more effective way to build relationships. A membership organization needs to till the soil, seed the ground, and protect the seedlings from predators, but most of the growth will happen through the community
- A good loyalty program can bridge the gap between a transactional organization and a membership organization, modifying behavior, building loyalty, and increasing customer lifetime value
- Members need to feel connected to the organization and to one another.
- Membership economy is like a marriage - with expectation that members will remain loyal forever. However, just like marriages, it is about relationships, not transactions, and both sides will grow and change overtime.
- Build loyalty through personalization of the experience
- If we can identify you, we can personalize the services and create better experiences.
- People want to be connected. They want to share and to engage with others, and the digital world is often a faster, more effective way to build relationships. A membership organization needs to till the soil, seed the ground, and protect the seedlings from predators, but most of the growth will happen through the community
- A good loyalty program can bridge the gap between a transactional organization and a membership organization, modifying behavior, building loyalty, and increasing customer lifetime value
October 5, 2019
Super useful.
Businesses who are membership organizations can have 6 different models:
- Digital subscriptions
- Online communities
- Loyalty programmes
- Membership companies
- Small firms
- Associations
Things for me to remember:
- It’s not a subscription. It’s a community.
- Goal is to maximize loyalty, not necessarily short-term revenue.
- In transactional economy, customers must decide every time to purchase your product. Versus in membership, they have to take action to NOT purchase your product. The status quo is not in your favor in transactional business, and it IS in your favor in membership. One transaction gets you a member for life.
- Create superuser loyalty: make it easy, personal, and get users involved.
- Anything that adds to the effort required to engage with an organization reduces membership.
Businesses who are membership organizations can have 6 different models:
- Digital subscriptions
- Online communities
- Loyalty programmes
- Membership companies
- Small firms
- Associations
Things for me to remember:
- It’s not a subscription. It’s a community.
- Goal is to maximize loyalty, not necessarily short-term revenue.
- In transactional economy, customers must decide every time to purchase your product. Versus in membership, they have to take action to NOT purchase your product. The status quo is not in your favor in transactional business, and it IS in your favor in membership. One transaction gets you a member for life.
- Create superuser loyalty: make it easy, personal, and get users involved.
- Anything that adds to the effort required to engage with an organization reduces membership.
June 28, 2021
This is a good book on a very interesting topic. The author does really well when it comes to:
* introducing ME (e.g. how does it differ from sharing economics or why is it something different from the subscription model or loyalty program)
* successful examples of applying ME in practice
* ME strategies
* 'unobvious' examples of ME in practice
What did I not like?
* the whole part IV is weak
* in general it feels like the book (even if rather short) could have been easily cut by at least 30 percent w/o any significant loss
* examples are generally interesting, but there were some that IMHO didn't represent the ME idea - the author's interpretation was very different from mine
Anyway, definitely a good book. Solid 3.7-4 stars.
* introducing ME (e.g. how does it differ from sharing economics or why is it something different from the subscription model or loyalty program)
* successful examples of applying ME in practice
* ME strategies
* 'unobvious' examples of ME in practice
What did I not like?
* the whole part IV is weak
* in general it feels like the book (even if rather short) could have been easily cut by at least 30 percent w/o any significant loss
* examples are generally interesting, but there were some that IMHO didn't represent the ME idea - the author's interpretation was very different from mine
Anyway, definitely a good book. Solid 3.7-4 stars.
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