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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insights 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.
volunteer_activism 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.
question_answer 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 Kelman Baxter's "The Forever Transaction" builds upon the concepts introduced in "The Membership Economy," focusing on creating long-term relationships with customers. The book emphasizes the importance of building trust and loyalty to foster recurring revenue and sustainable growth. It explores strategies for creating a sense of community and belonging among customers, encouraging repeat purchases and referrals. Baxter provides practical advice on how to design products and services that encourage ongoing engagement and loyalty. The book is a valuable resource for businesses seeking to cultivate lasting relationships with their customers and build a resilient business model.
The membership economy
Robbie Kellman Baxter
Robbie Kelman Baxter's "The Membership Economy" explores the shift from transactional business models to recurring revenue models based on membership. The book delves into the strategies and tactics for building successful membership businesses, covering topics such as pricing, community building, and customer retention. It provides a framework for understanding the unique challenges and opportunities of this business model, offering practical advice for entrepreneurs and business leaders. Baxter emphasizes the importance of creating value for members and fostering a sense of community to drive long-term success. The book is a valuable resource for anyone looking to build a sustainable and profitable membership-based business.
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).
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