The streets of Mumbai, India, are a lot different than the hills of Tallahassee, Florida. The crowds are like walking through Disney World minutes after the fireworks end, but for 24 hours a day. Yes, even when I went outside for a run at 6 a.m., the streets were busy with pedestrians, cars, and bicycles. India has a powerful economic engine, driven by more than 1.4 billion consumers clambering to get their share of India’s growth in prosperity. While 80 percent of the country earns less than $10.00 a month, there are millions of prosperous Indian families as well — many more than the U.S. in fact. This month, I had the opportunity to travel outside the U.S. to work with Agora’s affiliate in India, Equitymaster. At the center of this economic engine is the Indian stock exchange — a place where thousands of India’s largest companies go to generate … Continued
I just heard the most ridiculous statement from a subscription economy* owner who should know better: “The value of what I deliver to my members drives retention.” The value of what you deliver is less than 20 percent of the reason your member renews or not. There’s a value- and quality-driven brand within the motorcycle industry, Honda. The quality of their product is exceptional. The value for the investment is excellent. Yet, they represent a fraction of the sales that Harley-Davidson generates in the categories where Harley-Davidson chooses to compete. In those categories, Harley-Davidson has more than 50 percent of the market share for their products. Yes, customers buy Harleys more than any other motorcycle, even though Harley-Davidson is the premium priced product. Can you name another industry where the premium provider owns more than half of the market share? In retail, this would be comparable with a company such … Continued
When a customer spends $500.00, $1,000.00, or even $5,000.00 and the only “product” they receive is an email with access to a web page, they will likely become disappointed — unless that web page is designed with customer success in mind. A monthly client since May of 2014, Michael Rozbruch has launched several successful products. Up until now, though, they each involved a large shipped deliverable. He just successfully launched a new product for tax preparers called an Audit Protection Plan. It uses the same principal as fast food restaurants, asking, “Would you like fries with that?” It’s a quick and easy way for tax preparers to increase their after-transaction size by selling audit protection to each of their tax preparation clients. The product includes a number of tools the tax preparer must download and use. Rather than deliver these via email, I worked with Michael and a graphic designer … Continued
It’s not easy bringing you all this great member retention insight. Just last month, I spent a week in Northern California meeting with two clients. I was at the beach a full week for the Florida tourism marketing industry. And, at the end of October, I traveled to Mumbai to work with an Agora Global affiliate on subscriber engagement and retention. Northern California was beautiful. After spending three days in Sacramento working with the team at the California Chamber of Commerce, I moved on to Napa to work with Gene Kelly and his team at the Gun Club of America. The photo for this blog post is the team of the Gun Club of America. Gene Kelly started GCA in 2007 to create a community for people who love guns, know how they work, and enjoy collecting them. We worked together as a team to create a brand-new value proposition, … Continued
You may not like Lady Gaga’s music, outlandish fashion choices, or her lewd stage performances, but she’s grown her following so strong that she’s now called the “Queen of Pop.” And watching her this year on the Super Bowl halftime performance, it’s easy to forget that she signed her first record deal in 2007. This rise from complete obscurity to rock icon happened in less than 10 years. Lady Gaga’s current success also obscures the relentless work she put into building fans into a vibrant tribe she calls “Little Monsters.” I recently discovered the book “Monster Loyalty” by Jackie Huba, which details Lady Gaga’s efforts to build her career by a relentless focus on growing her community. I highly recommend this book to anyone interested in building a membership, subscription business, or cause. In her book, Huba describes seven community-building lessons that Lady Gaga uses to grow her following. Here … Continued
Subscription business are growing 19 times faster than the S&P 500. The most obvious attraction to entrepreneurs is the subscription recurring revenue. This makes the subscription economy the single fastest-growing business model today. And within the subscription economy, the fastest-growing segment are subscription boxes. With new subscription box offerings each week, the segment has grown by more than 50 percent in just the last few months.
Subscription boxes are hot. Even Walmart is looking at getting into the game by meeting with Birchbox. The rumors are swirling that Walmart will buy Birchbox to get into the subscription business themselves. Continued
I have two clients that add, on average, the same number of members each month. One client just came on board, and has been holding steady at a respectable 15,000 members for the last three years. My other client has been with me for three years and is at over 50,000 members. The only difference between these two memberships is the rate at which members quit their subscription, and this directly impacts their recurring revenue.
The toughest part of dropping our son off at college is that we miss having him around. Now, Kory and I have our home to ourselves again. It’s a lot simpler to shop for groceries, and preparing meals is easier when you are cooking for two. And while we certainly talk a lot, our son was another good conversation starter. For my wife, she’s thinking about him all the time, wondering if he’s getting to class, eating, and making friends. Evidently, he is getting along well enough, because he isn’t calling or texting her much. Kory has had to transition from being the mom who reminds her son about deadlines or places he’s supposed to be, to being the mom who supports her son silently from afar. Our son was one of 600 students accepted to the University of Florida Honors program. He’s living at the honors dorm, and his … Continued
The Membership and Subscription Growth Podcast is now on iTunes, Google Play, and Stitcher! This podcast will help you attract new subscriber members, keep them longer and grow a vibrant tribe. You’ll learn easy-to-implement shortcuts for fast membership and subscription growth. You’ll discover how to get more new members to join and what to deliver that improves membership retention and creates membership growth. You’ll discover the best membership practices, proven retention strategies and unique insight into the membership and subscription economy from some of the most successful entrepreneurs in the subscription economy and membership economy, including specialized information publishers, associations, subscription boxes, digital subscriptions, SaaS, loyalty programs and more. My mission is to serve you with the most current and useful information available. Each of the episodes will include a summary on my blog page with a link to the podcast and the interview transcript. You’ll receive an abundance of … Continued
When members quit, I take it as a personal insult. Here’s someone who tried my service and is now telling me she no longer wants what I’ve been delivering. It’s extremely disappointing. However, it’s damaging to your brand, reputation, and long-term membership growth to make the member cancellation process difficult or convoluted. When I conduct a membership program assessment, one of the 47 items I review is their cancellation process. Many times, they require members to phone or go through a challenging process to cancel. Some call this “speed bumps” on the cancellation process. Erecting a barrier between your member and that subscription cancellation button may make you feel better, if your subscriber wants to cancel, he’s going to find that button. And if you make it difficult on him, he’s going to be angry, and you’ll lose any opportunity you had to win back a long-term subscriber. Take a … Continued