Why would your company want a member instead of a customer? Studies show the valuation of companies in the membership economy are anywhere from five to 10 times the size of similar companies which use transactions. That’s according to Robbie Kellman Baxter, author of The Membership Economy. Baxter is a Silicon Valley marketing consultant whose clients have included Survey Monkey, Netflix, Yahoo, Oracle and eBay. I recently talked with Robbie about what she calls “the forever transaction,” a customer who sticks with you forever. You will learn insights she’s gained from advising nearly 100 organizations on growth strategy. Long-term members give entrepreneurs a more predictable cash flow, says Baxter. Also, companies are able to invest more time and money to acquire a new member than they could for a one-time sale. “So many transaction-based companies invest in acquisitions, and then don’t retain the customer,” Baxter says. “They’re on a constant … Continued
What is the one thing that can bring your business to a screeching halt? I’ve been on the phone with guys who were doing $10 million a year in revenue yesterday, who today are closed, frantic, trying to figure out what to do next. It’s easy to take it for granted once you have it, but it’s the greatest vulnerability in your business. And, even if you think you understand and have great relationships, those can all change. I’ve seen it a couple of times. If you receive your revenue through credit cards then your business is vulnerable. Most believe they are fine. Their bank is making money, charge backs are low, no one has said anything in a while, what could go wrong? If it’s been a while since you’ve done any investigation then your merchant services could easily be ready freeze-up like a brand new Macbook Pro. I’m … Continued
Imagine having double or even triple the number of members in your program. What would that mean to your business? Your income? Your future growth opportunities? This (and more) is entirely possible when you Stop Your Members from Quitting. I have a new client who has 689 members with an 11 percent churn rate. With 11 percent of his members dropping out each month, he will need to sign up 1,589 new members to double his membership in a year. This means he will need to sell, welcome, fulfill and handle all the administrative work for 2,067 members to end the year with just 1,378 members. By lowering his monthly churn rate to a more reasonable 5 percent, he’ll need to recruit only 1,102 new members. If his cost of recruiting each new member is $100.00, this is a savings of $48,700.00. This is huge for him because he gets … Continued
With all the reasons your members have for quitting, is it any wonder you’re able to keep your members at all? As a matter of fact, while there are many reasons for your members to quit, there are five — and only five — reasons your members will stay. Members stay for … 1. Return on investment — value received in excess of their membership investment. 2. Mission — to be part of a movement that’s bigger than themselves. 3. Growth — an opportunity to contribute back to the community. 4. Recognition — applause and acclaim from a peer group they respect. 5. Connection — relationships formed with other members. But none of this matters if they fall out of “enchantment.” When your new member joined, he was excited about solving some problem or experiencing some breakthrough. Your sales materials promoted the transformations he would undergo as a member. He … Continued
Understanding exclusivity and how it can be used to motivate customers into buying doesn’t make you exempt from its power. In fact, it’s the real reason I’m running the Boston Marathon. I want to be in that exclusive group! There’s no good reason to run a marathon. Yeah, the marathon is 26.2 miles long, but that’s the least of the running. Since December I’ve been “training” to prepare for the marathon itself. Heck, I even ran a marathon last month to prepare for the marathon. Why? How many people can say they ran the Boston Marathon? Sure there are 35,000 runners at the Boston Marathon, but still — that’s a fraction of the small minority of people who have ever completed a marathon in general. Few marathon runners ever make it to Boston. Now I’ll be one of them! And, I’d like to invite you along with me, but first … Continued
I recently had a conversation with someone asking about membership sites. She wanted to know which membership site platform had the best member retention. That’s like asking what type of paper you should use to print your newsletter on to improve retention. For member retention, what’s printed on the paper is a lot more important than the paper itself. There are many good membership site platforms out there. I’m partial to the one I use because I helped develop it, and I appreciate its features. But the platform matters little, even though that’s what everyone wants to ask me about. A membership site is a tool for communicating with your members. Of all the ways commonly used for communicating with members, it’s actually one of the worst for member retention. The problem is the member has to take the initiative to connect with your benefits. Your member is already dealing … Continued
After visiting me in Tallahassee for a consulting day, Ben Glass and his cracker-jack marketing director, Charlie Mann, put my newsletter formula into action. You can see some examples of how they now feature client stories to illustrate what they teach. These client stories make it easier to complete your newsletter, and they provide great instructional content for readers because they learn the lesson and they get to see an example. And, most powerful of all, getting featured in your newsletter is a powerful motivator for your readers. Here’s a comment Ben received from a member after a recent newsletter: Hi Ben, Last Thursday, I arrived at the office expecting it to be like any other day. It wasn’t even out of the ordinary for Kenny to gather the team in our conference room to read aloud your newsletter. He began with the headline, “Diamond Elite Coaching Member … Continued
The single most important time to build a relationship with your member is what is the most overlooked by membership marketers. Everyone wants to talk about their sales letters, marketing funnels, and automated upsells. The new member welcome is rarely discussed but makes all the difference in whether or not your new member gets value from your product and retains his membership versus asking for a refund and canceling. I’m currently working with a client’s program development manager to rebuild his product and welcome sequence. From an instructional design perspective, the program development manager has pulled together an excellent training program. It provides members with everything they need to know, including several exercises, and lays out the planning that is necessary to make them successful. Unfortunately, few members were getting through the training. In fact, they were quitting faster than ever before. Academically, the program was solid, but it took … Continued
Too many membership sites are set up in a way that actually increases member drop-outs. How? They make it confusing for prospects to find what they’re looking for; they make the program too long; or they make the program look like too much work. No wonder members quickly become overwhelmed! I recently had the opportunity to work with Ethan Kapp and Brett Kitchen of Safe Money Millionaire, who came to me for feedback about their member site. As it was, their site was much better than most. They put a lot of work into the design to make it look great, and they provided a lot of recognition of successful members.
The instant the whirring noise begins, the quadcopter leaps from the ground and high into the sky. It’s almost faster than your eye can see. My 15-year-old son, Robert William, was excited to fly his first quadcopter. It’s a light, propeller-driven device that includes a video and still camera. The first Saturday after the drone arrived, we took it to a football field near our home. It was a bit windier than we wanted but he was too excited to be deterred.