3. This isn’t about the difference between Membership and Subscriptions
The
Subscription
Economy? The Sharing
Economy?
The
Membership
Economy?
4. Subscriptions
Purely and simply a way of
paying for something
And one way to pay for membership
Membership
Something you feel part of and
connected to emotionally
And it may even be free
Utilitarian Meaningful
Convenient Fulfilling
Ongoing Relationships
5. This is about a new way to think about and grow customer relationships
An ongoing relationship,
based on an experience,
driven by engagement, that
delivers value over time
6. 70% of businesses said they think
membership and subscription models are the future
commercial model of their industries...
Quantitative and Qualitative Study
However, only 7%are currently
generating significant revenue in this way
9. Revenue
“It’s really hard to be good at multiple revenue lines”
Ed Roussel, Chief Innovation Officer, Dow Jones
Subscriptions
Transactions
Advertising
Affiliates/Partners
Direct Indirect
12. Product
“Product and the product experience is absolutely the
most important thing. Get this right and it powers the
marketing.”
Barney Harrison, CMO, The Gym Group
What you sell and how you sell
it
14. Marketing
“Engagement is absolutely one of the
biggest priorities in our business”
Karl Wells, General Manager Membership, The Wall Street Journal
With a focus on
engagement
16. Data
“Our Community Analytics Team sits
at the heart of the business.”
Ben Ebbrell, Founder, SORTEDfood
The fuel for
everything
17. Subscription
s
Data can be used to maximize total customer value throughout
the whole customer lifecycle
Paywall Offers In Life SaveVisit
Transactions
Affiliates
Advertisin
g
Subscription
s
Advertisin
g
Subscription
s
Subscription
s
20. Delivery Model
“Our biggest challenge was actually shifting to a D2C
model and building the organization to be able to do that”
John Fiedler, Head of Digital, Fox
Core operational capabilities
21. But, at the heart of our model is the
customer
“The first question everyone asks, everytime about
everything, is: What would this mean for our members?”
Lisa Oswald, Head of Customer Services, Travelzoo
22. Using the model
1. Do I have a
compelling proposition
that customers will
commit to?
2. Do I have
the
capabilities
to deliver?
3. What
revenue
can I
generate
and how
much?
5. Do the ‘Membership
Economics’ add up for
me?
4. What pricing model
should I use?
26. Key takeaways
1. You will lose money when you acquire a new
customer, and you might make money if you keep them.
1. Experience and engagement are the key, these need to be
backed up by realistic revenue modeling and pricing.
1. You have to be good at creating reasons for customers to
stay, not just relying on reasons for them not to leave.
1. Reframe the metrics - KPIs!