It is great to find a new book that has been waiting to be
written for a long time. The Membership Economy: Find Your
Superusers, Master the Forever Transaction, and Build Recurring Revenue is
that book. It makes the case for the membership
relationship across almost all organizational platforms.
The author, Robbie Kellman Baxter, maintains that membership
is the lever for success for organizations from online businesses like Pandora,
to communities like LinkedIn; to loyalty programs like airline frequent flyer
programs, to traditional programs like Weight Watchers; and yes, even for non-profits
and associations. To support this, she offers lessons learned in numerous case
studies on how organizations have successfully employed the membership concept.
Baxter argues that “Virtually any organization can become
part of the Membership Economy.
Membership strengthens loyalty.
Membership strengthens participation.
Membership strengthens referrals.
And organizations that think about membership tend to focus more on
providing long-term value, which ultimately leads to better customer lifetime
value. Any CEO who is not thinking about
membership is missing a huge opportunity to point his or her organization
toward long-term sustainable profitability” (page 22).
Some today make the case that membership is obsolete or no
longer relevant. Baxter strongly makes
the opposite case. She says, “A certain
type of organization is winning the hearts and voices of their customers, and
building the kind of loyalty that traditionally was reserved for family, community,
and church. The secret that these
organizations know is that people are craving membership. Organizations that build their businesses
around people’s needs to belong, to be connected, and to be admired, that are
focused on relationship over products are winning in today’s economy” (page 9).
The Membership Economy
will be published this month and is a great read for anyone considering
developing or currently managing a membership program.