Robbie Baxter takes a look forward for all those running a subscription-based business to provide insight into the future of loyalty programs.
For the last fifty years or so, for many marketers,“Loyalty” has been synonymous with Points Programs. Nearly every hospitality organization and retailer has a Points Program to drive engagement in episodic businesses. The value on both sides is clear. Consumers “earn” rewards in exchange for frequency, recency, breadth and depth of purchase. Businesses enjoy greater Lifetime Customer Value (LCV) and also have a means of tracking consumer behavior by individual.
These programs have grown increasingly sophisticated—consumers are allowed to use their points not just with the points-issuing brand but with an array of partners, and can accrue points through a broad range of activities, with special accelerators and bonuses based on desired behaviors.
Consumers have kept pace with that sophistication. People spend hours understanding the implications of these rules and optimizing shopping and travel to maximize points. There’s a whole cottage industry or experts that has sprung up around these points-based programs, to help consumers quantify the value of their points, and use those calculations to determine which programs, cards and brands to use.
While these programs can be effective in driving revenue, they work in much the same way as promotions and discounts. In other words, they are financial transactions—discounts for frequency, recency, and depth of purchase. They aren’t really about loyalty, or “preference” at all—it’s not an emotional relationship. And these programs have become expected, a box to check, rather than a differentiated way of building connecting with one’s best and most loyal customers.
Key points include:
- Points based programs
- Premium Loyalty Programs
- Forever transaction best practices
Read the full post, What is the Future of Loyalty Programs? on LinkedIn.
Robbie Kellman Baxter makes the case for subscription-based businesses and provides a few expert tips on how to take your business in that direction.
If you’ve been tasked with launching a subscription-based business at your organization, or are thinking about starting your own XXX-as-a-service or XXX-of-the-month-club, before diving in, take a step back.
To ensure a solid foundation, I encourage companies to devote a few weeks (usually at least 2 and no more than 12 weeks) to fleshing out the business case before proceeding. After all, the objective of testing is to assess the viability of the model, make necessary adjustments, and get the green light to move forward at a broader level. Without understanding the business case, how will you, and your organization, know whether you’re on the right track.
Details covered in this article include:
- The business rationale
- The forever promise
- Executing the vision
- The risks of the strategy
- The early steps, research, and tests needed
- Criteria for board support
Read the full article, Making the Case for a Subscription-Based Business, on LinkedIn.
The subscription business is based on long-term relationships with customers. Robbie Kellman Baxter shares ideas on how to build strong relationships that work for both your personal life and in business.
Over the holidays, I started thinking about what my work on The Forever Transaction and The Membership Economy has taught me about building long-term personal relationships, which ultimately are way more important than any subscription.
As dig in on our 2020 to do lists, and focus on our goals and hopes for the year ahead, I wanted to share some ideas on how we can take these principles and apply them in our personal relationships. It’s a little hokey, and a little jargon-y business-school-ish but I decided to try using my 7-step framework as a guide.
Points covered in this article include:
1: Different tiers of subscriptions
2: Identifying key metrics
3: Onboarding process
4: Using technology
Read the full article, Seven Steps to Better Personal Relationships, on LinkedIn.
Subscription businesses were a big deal in 2019, so what’s the forecast for 2020? Robbie Kellman Baxter shares her expertise on what lies ahead.
I’m no fortune teller, but something about the beginning of a new year and a new decade makes me want to start spouting predictions. Actually, this isn’t the first time I have taken a crack at predictions. The final chapter of my new book THE FOREVER TRANSACTION is all about the future of subscription and membership models too.
Here’s what I think will happen.
In this post, topics covered include:
- There will be a right-sizing of the “Subscription Box” industry.
- Subscription “Managers” Will be Everywhere.
- Subscription CMOs will swing back toward strategy and away from “growth hacking”.
- Consumers will start subscribing to the thing itself, not just services and boxes.
- Big Companies will try to buy their way into the Membership Economy through Acquisition.
- Healthcare will become increasingly consumer-centric, which will lead to more forever transactions.
Read the full article, Crystal Ball: The World of Subscriptions in 2020, on LinkedIn.
Karthik Rajagopalan’s company blog explains how machine learning models can facilitate a deeper understanding of the drivers of churn, leading to better solutions that can help customer retention for subscription businesses.
Subscriptions have been around for a very long time. Having come a long way from the hire-for-purchase model introduced by the Singer sewing machine company, the past few decades saw the emergence of memberships in retail, health clubs, and monthly subscriptions to services like telephone and cable television. More recently, the recurring revenue model has been pushed forward by e-commerce and software-as-a-service (SaaS) businesses with the introduction of services for streaming media, connected home, connected car, gaming, etc. According to the Subscription economy index (SEI), the subscription economy has grown by nearly 300% over the last 7 years and is also increasingly correlated with traditional economy, a significant yet not so surprising development.
Topics covered in this article include:
-Customer longterm value
Read the full article, AI augmented retention program is a must for subscription businesses, on the Paramis Digital website.