Top Takeaways:-      Companies can find success by identifying a specific problem and then solving it for their customers forever, turning it into a “forever transaction.”
-      Everyone is in the subscription/membership business whether they know it or not. Even if there is no traditional subscription involved, customers “renew” by returning to do business companies they like and trust.
-      A subscription is a tactical decision about pricing, whereas membership is the mindset that a customer is going to be with you for a long time through a formalized relationship.
-      Thinking of your customers as members opens up new opportunities to deepen and extend new and existing relationships with your best customers. This can happen even without incorporating subscription pricing.
-      Offering a subscription model can create a more convenient experience for your customers.
-      To move from a one-time transaction to a subscription, you must first step back and figure out your product or service’s goal as it pertains to customers. Build your subscription around meeting that goal or solving a problem for your customers.
-      After someone subscribes or becomes a member, you must teach them to make your product or service a habit. If the customer is not engaged or getting value, they will not renew.
-      Shift your focus from customer support to customer success. This means not only solving customer issues, but helping them use, value and succeed with your product or service.
-      Focus on your customers’ long-term well-being and success. This will help you build a formal relationship with recurring revenue in any company and any industry.
Quote:“A subscription is a pricing decision. It’s a tactic. Membership is the mindset that the customer is going to be with you for a long time. It makes the entire organization think differently about marketing, products and services. Pricing is just a small part of this very powerful business model.”
About:Robbie Kellman Baxter is the founder of Peninsula Strategies, LLC, a management consulting firm. She is also the author of the bestselling book The Membership Economy. Her new book is called The Forever Transaction.
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