On Tuesday, February 23, author and consultant Robbie Kellman Baxter will present the Masters Series session, “The Membership Economy and Direct Response,” during The Great Ideas Summit 2016. Kellman Baxter is the author of The Membership Economy: Find Your Superusers, Master the Forever Transaction & Build Recurring Revenue. ERA recently spoke with Kellman Baxter about her upcoming session and what attendees can expect from her presentation.
Tell us about your company and what you do.
I’m the founder of Peninsula Strategies, a management consultancy focused on organizations using subscriptions and community to build greater engagement and loyalty. Clients have included Netflix, Yahoo!, Oracle, the National Restaurant Association, The Mail Newspapers, and dozens of private companies. I guide organizations as they join the Membership Economy.
What is the Membership Economy, and how does it apply to direct marketers?
The Membership Economy is a term I use to describe a massive trend in which organizations provide access, not ownership, build ongoing relationships instead of anonymous transactions and open the conversation so that instead of one-way communication, customers are able to talk back to the organization, as well as to one another—under the umbrella of the organization. Organizations are flocking to this model because it results in Superusers, Forever Transactions and, of course, predictable recurring revenue.
Many direct marketers have at least dabbled with subscription models, but that’s just a pricing decision. The Membership Economy requires a whole new mindset, and results in unprecedented loyalty, because consumers love it as much as the organizations.
How can direct marketers leverage it to enhance their direct-to-consumer business?
Direct marketers can get off the hamster wheel of new products and promotions, and focus on retention, loyalty, and referrals. When customers enter into a “forever transaction” with an organization, their intention is to stay forever, or until they have a real reason to cancel. And in the Membership Economy, you’ll know when your customer is thinking about canceling, long before they hit the cancel button or stop responding to your communications.
Why should people attend your session?
People should attend my session to learn something new that can immediately be put into action to increase revenue and profitability at the same time. While the Membership Economy has affected nearly all digital and services businesses, it is just starting to transform the world of consumer products. We are already seeing the rise of subscribe-and-save programs like what Amazon is offering, focused replenishment systems like Dollar Shave Club, and the wildly popular subscription boxes (think Birch Box, Citrus Lane, and Pop Sugar). Learn what these organizations already know, so you can ride this transformational wave.
What are 3 important takeaways that attendees can expect from your session?
1. Find your superusers.
2. Master the “forever transaction.”
3. Build recurring revenue.
Want to learn more about the Membership Economy? Register now for The Great Ideas Summit! Remember, Early Bird discount ends today!