70 percent of business leaders predict membership revenue will be core to future growth, only 7 percent of brands are so far monetizing products this way, according to recent research by Manifesto Growth Architects.
What is the membership economy?
The membership economy is based on ongoing relationships rather than transactional selling. It is driven by experience and engagement, and is designed to deliver greater value over time for both the customer and the business.
Unlike traditional, transactional business models, you will lose money when you acquire a new subscriber, but you might make money if you can keep them. However, it takes time to build loyalty, warns Sam Jordan of Manifesto Growth Architects. You have to be good at creating clear reasons for increasingly savvy customers to stay with you in the long term, not just relying on reasons for them not to leave.
Four Ways to Unlock Value from Customer Relationships
- Product and product experience – what you sell and how you sell it. End user experience is the most important thing. If the customer ….. Continue Reading for Three More Tips