The Membership Economy by Robbie Kellman Baxter is a must-read book for anyone who wants to understand the shift from a transactional economy to a membership economy. The book explores how companies can create long-term relationships with their customers by offering them access to products, services, and experiences. Baxter provides a comprehensive overview of the membership economy and how it has evolved over time. She also offers practical advice on how companies can create successful membership programs and retain their customers.
The first chapter of the book introduces the concept of the membership economy and how it has evolved over time. Baxter explains that the membership economy is not a new concept, but it has become more prevalent in recent years due to the rise of the internet and social media. She also highlights the benefits of the membership economy, including increased customer loyalty, higher profit margins, and a more sustainable business model.
Chapter 2: The Power of Access
In the second chapter, Baxter discusses the power of access and how it has become a key driver of the membership economy. She explains that access refers to the ability to use or consume something without owning it. This can include access to products, services, or experiences. Baxter provides examples of companies that have successfully leveraged access to create successful membership programs, such as Netflix, Spotify, and Airbnb.
Chapter 3: The Four Types of Membership ProgramsIn the third chapter, Baxter introduces the four types of membership programs: transactional, relational, transformational, and virtual. She explains that each type of program has its own unique characteristics and benefits. For example, transactional programs are focused on selling products or services, while relational programs are focused on building long-term relationships with customers. Transformational programs aim to change the behavior or habits of customers, while virtual programs offer access to digital content or experiences.
Chapter 4: The Five Pillars of Successful Membership Programs
In the fourth chapter, Baxter outlines the five pillars of successful membership programs: value, access, community, personalization, and curation. She explains that each pillar is essential for creating a successful membership program and retaining customers. For example, value refers to the perceived value that customers receive from the program, while access refers to the ability to use or consume something without owning it. Community refers to the sense of belonging that customers feel when they are part of a membership program, while personalization and curation refer to the ability to tailor the program to individual customer needs and preferences.
Chapter 5: The Five Risks of Membership Programs
In the fifth chapter, Baxter discusses the five risks of membership programs: over-commitment, under-commitment, misalignment, commoditization, and erosion. She explains that each risk can derail a successful membership program if not addressed properly. For example, over-commitment occurs when companies offer too many benefits or features in their membership program, which can lead to confusion and dissatisfaction among customers. Under-commitment occurs when companies do not offer enough benefits or features, which can lead to customer churn.
In conclusion, The Membership Economy by Robbie Kellman Baxter provides a comprehensive overview of the membership economy and how it has evolved over time. The book offers practical advice on how companies can create successful membership programs and retain their customers. By understanding the benefits of the membership economy and the key pillars of successful programs, companies can create long-term relationships with their customers and build a more sustainable business model.