Saved by Keely Adler
Why more direct-to-consumer brands are exploring membership models
In the past, much of our economy has operated on the principles of ownership. Companies sell things, and consumers buy them and own them.
Robbie Kellman Baxter • The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue
Despite this, Lovevery’s lifetime sales per customer are more than double that of KiwiCo’s, according to an analysis by Bloomberg Second Measure. (And at around $700 after 24 months, more than enough to justify spending on customer acquisition.)
Jenni Avins • How Lovevery became new parents’ go-to subscription box
The key metrics in the ownership economy are conversion rate, transaction size, and economies of scale. In the Membership Economy they are retention and customer lifetime value.
Robbie Kellman Baxter • The Membership Economy: Find Your Super Users, Master the Forever Transaction, and Build Recurring Revenue
When you treat your customers like members, you invest in them. It’s the only way they will invest in you.