For all those thinking about starting a subscription-based business, or adding a subscription service to a business, Robbie Kellman Baxter shares an article that identifies five things you shouldn’t do and one you should.
Netflix is a true leader of the Membership Economy. Back in 2002 when I first started working with them, I fell in love with their business model.
I loved their focus on doing one thing really well, their Forever Promise (FP). I describe that FP as “a huge selection of professionally created video content, delivered in the most efficient way possible, with cost certainty.”
I also loved their data-driven approach, the metrics they popularized around engagement and churn, and their continuous tinkering to always improve their model. And I loved their commitment to transparency.
But that doesn’t mean that every organization that wants predictable recurring revenue should copy everything Netflix does. Building a forever transaction with your own customers requires more than the “Netflix Playbook”.
Here are some times when you should consider charting your own course rather than doing what Netflix did.
Key points include:
- Subscription revenue
- Variable costs and customer usage
- Distinctly different customer segments
Read the full article, 5 Reasons NOT to Make Your Subscription “Like Netflix”…and 1 Reason You Should, on LinkedIn.
If you are thinking about building a marketing strategy for the coming year, this post from Kaihan Krippendorff’s company blog may have the direction you need. The “ultimate strategy” is explained and explored.
Is “be good” a part of your 2021 strategy? If not, you should reconsider.
When I was in business school, we learned that companies exist to do one thing: maximize shareholder value. At Outthinker, we’ve been talking for years about how this belief has become defunct. Companies are realizing that focusing solely on shareholder value creates resistance to growth that ultimately diminishes value to those shareholders.
A better strategy is one that aims to help shareholders by benefiting all stakeholders: the community, employees, the government, the environment, and the world.
Becoming a force for good is the ultimate strategy.
The Pope on Big Business
Last week, in an unlikely pairing, Pope Francis met with a group of businesses, investors and other groups to form the Council for Inclusive Capitalism with the Vatican. The council, whose leaders include Ajay Banga of Mastercard, Marc Benioff of Salesforce, and Brian Moynihan of Bank of America, intends to create a more just economic system and address the biggest challenges facing humanity and our planet. Their commitment to focus on environmental, social, and governance, or ESG, practices in business reflects a growing global trend and a serious step forward for the “be good” movement.
I have gotten to speak with some of these leaders personally, and I can assure you their intentions are authentic. Why? Because they make business sense.
Key points include:
- Top consumer trends for 2021
- The importance of company values
- How to generate innovative strategic ideas
Read the full post, The Pope, Big Business, and the Future of ESG, on Outthinker.com.
Luca Ottinetti provides an article that reflects on past recessionary crises to help business leaders move through the current situation productively with examples of strategies from TMSC, Ford, AB InBev, Home Depot, and Verizon among others.
Managing through a recessionary crisis requires more than laying low and waiting for the storm to blow over. It takes proactive management to prepare and then take advantage of the general economic weakness.
Recessions come from different starting events, for example (1) stagflation from OPEC’s quadrupling oil prices in 1973-1975, (2) the Fed’s elevated interest rates to combat inflation in 1981-1982, (3) the savings and loan crisis in 1989, (4) the boom and bust of the dot.com businesses in 2001, and (5) the sub-prime mortgages in 2007. Today, a recession is starting to take hold, triggered by the COVID-19 pandemic. Whether V-shaped, U-shaped, or L-shaped remains a subject of speculation. But the real question now is: What needs to be done today
to get through this crisis and come out ahead?
Areas covered include:
- Expanding market share
- Mergers and acquisitions
Read the full article, Managing Through A Recessionary Crisis, on the Great Prairie Group website.
Jason George provides insight on the changes that may emerge after the current crisis.
A good strategy should be responsive to the various scenarios that could plausibly materialize, but even the most tightly crafted ones get blown apart when their subject is hit by an asteroid. In our current situation the object wreaking havoc on a planetary scale happens to be a microscopic bit of encapsulated genetic information containing less data than an image used as website filler.
Starting in an animal market in a city that is larger than many globally prominent ones and yet unknown to the average person outside China, the newest coronavirus variant has managed to vaporize years of effort and planning. Retail, hospitality, and travel businesses have watched their markets disappear overnight, the wealthy are packing off to second homes away from the urban crush, and politicians are unleashing fiscal and monetary interventions at a scale unprecedented in history.
Insights on the future of the new normal include:
- Behaviour changes
- Humanity exposed
- The fragility of supply chains
- Robust systems
Read the full article, Strategy, disrupted. Everything has changed, on Jason’s website.
Jason George explores the relationship between the human need for ritual, community, and purpose, and the organizations or entrepreneurs who see that need as their next opportunity.
Come all ye faithful
Some of the devoted choose to meet in the early morning, braving the cold and arriving at their nondescript buildings in the predawn darkness. The name on the sign outside might reference “soul” or “cross,” but there is nothing outwardly grand about these places. The real draw is the service about to start inside.
The congregants’ earlier interactions have acclimated them to social norms like dress codes, so they choose their attire with the fastidiousness of early Puritans. This leads to a generic sameness among the group—deviation would make one stick out, and this experience is not about the individual.
Key points include:
-The pursuit of salvation through testing the body
-How brands like SoulCycle and CrossFit fulfill the need
Read the full article, The Business of Religion, and the Religion of Business, on Jason’s website.
An evergreen post from Gaelle Lamotte to kickoff 2020 and help you prepare for what lies ahead.
In a world of disruptive businesses, overwhelming information and relentless change, companies have to master the art of strategy execution to be agile enough to capitalize on growth opportunities. Excellence in execution is what makes the difference between good strategies and success in the marketplace for your customers, partners and employees, and ultimately investors and shareholders.
Points covered include:
-Understanding the organization’s capabilities
-Discipline in managing strategy
Read the full article, How do you prepare for what’s ahead?, on LinkedIn.