484: Where to Start on Subscriptions, with Robbie Kellman Baxter

Aug 10, 2020

Robbie Kellman Baxter, an expert in membership and subscription models, shares her extensive experience in helping organizations adapt to these shifts. She discusses the growing trend towards subscriptions in various industries, emphasizing the importance of creating a 'forever promise' to customers. Robbie highlights the need for businesses to truly understand their best customers and avoid simply repackaging existing services. She also provides insights into innovative approaches that enhance subscriber value, focusing on long-term relationships over immediate sales.

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INSIGHT

Subscription Shift

The business world has shifted towards subscription models, influenced by companies like Netflix, Spotify, and Amazon Prime.
Investors now value subscription-based businesses more highly, accelerating this transition.

ADVICE

Forever Promise

Start with a "forever promise" to customers, focusing on their long-term needs and desires.
Shift from short-term sales goals to a customer-centric approach, building lasting relationships.

ANECDOTE

EA's Player-First Approach

Electronic Arts (EA) shifted to a "player-first" mindset, focusing on player enjoyment and connection.
They experimented with subscription models alongside their core business, demonstrating a hybrid approach.

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Robbie Kellman Baxter: The Forever Transaction Robbie helps companies leverage subscription pricing, digital community and freemium to build deeper relationships with customers. She has been quoted on business issues in the Wall Street Journal, The New York Times, Consumer Reports, and many others. She has created and starred in eight video courses in collaboration with LinkedIn Learning on business topics ranging from innovation to customer success and membership. She is the author of The Membership Economy*, a book that has been named a top 10 marketing book of all time by BookAuthority. She recently released her new book, The Forever Transaction: How to Build a Subscription Model So Compelling, Your Customers Will Never Want to Leave*. In this conversation, Robbie and I discuss the shift to subscriptions and memberships in many industries in recent years. We address implications for leaders who are considering strategy on making changes to how they do business — as well as some of the tactical steps. Finally, Robbie highlights some of the myths and best practices when beginning with subscriptions. Key Points There’s been a significant shift to memberships and subscriptions in recents years in many industries. It’s critical for organizations considering a move in this direction to create and articulate a forever promise. Be cautious about simply building existing products and services under a membership banner. It’s critical to speak to your best customer. Beware of treating members worse than strangers or taking advantage of your most loyal customers. Resources Mentioned Free downloads of Robbie’s keynote presentation slides, membership manifesto, and book chapter. Book Notes Download my highlights from The Forever Transaction in PDF format (free membership required). Related Episodes How to Start Seeing Around Corners, with Rita McGrath (episode 430) How to Build an Invincible Company, with Alex Osterwalder (episode 470) How to Pivot Quickly, with Steve Blank (episode 476) Discover More Activate your free membership for full access to the entire library of interviews since 2011, searchable by topic.