The Membership Economy

Once you start thinking about how the principles of membership can be incorporated into existing business models, you start to see opportunities everywhere.

Internet-powered businesses offering customers “access” rather than “ownership” are on the rise.The Membership Economy model, enabled by technological transformation and emphasizing ongoing relationships rather than individual transactions, can benefit almost every organisation.

In the Membership Economy, businesses focus on nurturing long-term relationships with their customers, resulting in increased loyalty and higher customer lifetime value (CLV).

The benefits of ownership center around security, privacy, and control. Right now, however, ownership is dramatically losing favor, while connection is becoming critically important.

Membership is about connection and access over privacy and ownership—and not everyone values these the same way.

Some people want to be anonymous, but others are willing to give up some personal information in exchange for the recognition and benefits that come from belonging.

Companies that are disciplined in their approach to innovation get a much better payoff than the ones that are eager to “just try something.