B2B Subscription Business
Robbie Baxter brings the subscription-based business model to education and shares how it can benefit from the Membership Economy.
The past year has been a difficult one for schools. It sometimes seems like everything’s in flux.
Many families have changed strategies. Some have left traditional schools to join neighborhood pods. Others have gone from independent schools to public schools to save money. At the same time, some public school families have gone private, fleeing the chaos of the public school system. And, to make things more complicated, some students have moved out of the area, but are still learning virtually from their original school.
Schools are left wondering—will the students who left come back? Will the new families stay beyond this year? And is virtual learning going to be part of our new normal?
In this uncertain time, loyalty has never been more important.
I’ve devoted much of my career to helping organizations build loyalty, building the kind of “forever transactions” that justify predictable recurring revenue.
So the question is, does what I’ve learned working with subscription businesses and membership organizations apply at schools?
My answer is yes…and I’ll show you why. But first, let me tell you how I came to be so interested in this question of how organizations build loyalty so deep and so trusted, that customers take off the consumer hats, don their membership hats and stop looking for alternatives.
Key points include:
- Defining the promise
- Retaining loyalty
- Connecting with superusers
Read the full article, What Public, Private & Independent Schools Can Learn about Membership from Silicon Valley Subscription Companies., on LinkedIn.
Robbie Kellman Baxter shares her latest post on key subscription-based business strategies. This week she covers the new metrics of subscription models.
Selling is hard.
You have to find the prospects, attract their attention, build their trust, understand their needs and goals, and then get them to sign the agreement.
It’s much easier to keep the customers you have, and focus on extending and expanding that relationship.
That’s why there’s been an explosion in the “Anything-as-a-service” models (XaaS)–in the business world.
If you’re in sales, and moving to a subscription model, or even if you’re already selling something as a service and need a refresher, here are some tips to help you attract, engage, retain and expand relationships with the most profitable customers.
From Big Game Hunting to Farming
In a traditional business, the goal of selling is to get the customer to buy. That moment of transaction is when you’re done—hooray! And you go out to sell the next account. It’s like big game hunting, and you’ve brought in the woolly mammoth and left the carcass on the floor of the cave while you go out to win the next big deal.
But today, with SaaS and the emphasis on recurring revenue, the goal is to get the customer to come and stay. In this Membership Economy, it’s all about building a long-term relationship, with an emphasis not just on the initial transaction but on extending and expanding that transaction over time. If you need to optimize for lifetime value, you need to bring in the right customer (a customer who is going to get value out of what they’re buying) and then you need to optimize the customer experience for engagement and retention.This means that it’s not enough to close the deal–you also want to make sure that they are onboarded for success, and that your colleagues are tracking engagement.
Key points include:
- The importance of underlying metrics
- The focus on recurring revenue
- Developing the customer relationship
Read the full article, B2B Subscription Secrets for Sales: How to Build a Forever Transaction with Your Customer, on LinkedIn.
Umbrex is pleased to welcome Sean O’Toole with Forge. Sean O’Toole is a Partner at Forge > Outcomes, a growth innovation firm to F1000 companies. Sean specializes in deploying coaching leadership teams through change, building innovation capabilities, and launching new businesses.
A former McKinsey consultant, Sean has over 15 years P&L experience with American Express, Progressive Insurance, and Western Union. founded and sold a fintech company; and is an EIR
Sean is happy to collaborate and provide input on projects relating to innovation, growth, and strategic change.