

Leveraging the Membership Model: Lessons from Netflix with Robbie Baxter, Author of The Membership Economy
10 snips Feb 23, 2021
Robbie Baxter, a strategy consultant and author of 'The Membership Economy' and 'The Forever Transaction,' delves into the powerful subscription model that changed the game for businesses like Netflix. She reveals what really defines the membership economy and its benefits for various industries. Baxter also discusses how client expectations in consulting have shifted, explores the nuances between memberships, subscriptions, and freemiums, and shares essential strategies for building lasting customer relationships.
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Robbie's Netflix Inspiration
- Robbie Baxter fell in love with Netflix's subscription model while consulting for them about 20 years ago.
- This inspired her to write The Membership Economy to help others apply this model across industries.
Membership Mindset vs Pricing
- Subscriptions are a pricing tactic, while membership is a mindset focusing on long-term customer goals.
- Freemium is another pricing tactic that works well only under specific circumstances.
When Freemium Works Well
- Freemium succeeds when changing behavior, leveraging network effects, or encouraging marketing via free users.
- Examples include newspapers' digital models, LinkedIn's network, and Hotmail's viral growth.