Content owners are fascinated with memberships. Faced with
eroding subscription revenue, many legacy publishers plan membership programs in
a well-intentioned attempt to turn around their revenue declines, but do no more
than confuse their core customers. “Membership” programs - offering more
frequent content such as topic-specific newsletters, earlier access to the
magazine, database content and a branded mug are nothing more than a tiered
subscription offer. But when memberships are differentiated from subscriptions,
they offer “members” reciprocity in the purpose and function of the publication
and deeper engagement for the mutual benefit of both the member and the
publication.
After conducting some market research for an enthusiast
publisher recently, I found that an important component of their subscriber
base was the large number of long-time subscribers who kept physical copies of
the title going back many years. While these subscribers exhibited a propensity
for deep engagement with the content, packaging a ‘membership’ program to sell
them more stuff was not going to result in more engaged and connected partners.
Past management teams had attempted to leverage this ‘loyalty’ to create a
vendor “marketplace” which only exacerbated the company’s financial problems as
subscriber numbers continued to decline and no one bought the knick knacks.
Subscriptions represent a financial transaction; well-designed
membership programs facilitate a two-way conversation between the publication
and its members to produce something unique – such as fresh content, new products,
ideas and engagement. What makes a membership program different is that it may
not have a well-defined objective whereas a subscription is always defined by
its payment status and is, by nature, a short-term proposition – renewals
notwithstanding. Once membership conversations start, they should yield a
wealth of new ideas and initiatives, bringing a vitality to the business that
may not have existed before. And that can help split new content and business
models. But it is the openness of the members give and take which is the
primary objective, not revenue growth per se.
Building effective subscription plans and models is not
straightforward - it requires careful planning and a lot of experimentation. Without
that, subscription programs become stale and routine particularly when
supporting a predominately print-based audience. The development of a
membership program will be more complex, multi-dimensional and evolutionary,
and will require new staff capabilities, experience and thinking. But base
subscription programs should not be ignored and should work in tandem with the
new membership program.
Below I’ve framed some ideas for expanding your existing subscription
program and building a new membership program:
Subscription
Program
|
Membership Benefit
|
Purpose is to raise average subscription revenue per subscriber. The
following benefits could be an up-sell to the existing subscription or new
(higher) tier
|
Build a two-way connection between the magazine and members that
results in deeper engagement and mutual benefits
|
·
Early digital access to the print publication
·
Free digital subscriptions
·
Archive and legacy content access – via
website
·
Discounted gift subscription rates
·
Early and preferential access to webinars and
events
·
Multi-year subscription options and, if
available, cross-sell subscriptions with other magazines
·
Advertiser and partner discounts
|
·
Don’t promise to engage but then fail to do
so. Build a program of active engagement first before launching the program
·
Invite existing subscribers into the
organization to help plan the membership program
·
Build exclusivity with limited member invites to
events each year
·
Launch a “badging” for members to use via
interaction with the community – suggests exclusivity
·
Establish dedicated staff and special member events
designed for close interaction and exchange
·
Consider topic-based focus groups: Potentially
live and broadcast to members
·
Allow members to report on events such as
conferences and shows for publication
·
Enable members to build interest groups around
specific topic and subject areas
|
One of the biggest objectives the publisher may seek through
the development of a membership program is to improve the positioning and
viability of the magazine thereby improving long-term financial success.
That’s not immodest if the membership program is designed to truly engage key
constituents in a conversation. A more engaged member will help guide the
publication and this will, in turn, help maintain and even expand your core
subscription base. With this objective, the publisher may decide to charge only
a modest fee for the membership program.
The high level and directional ideas above will help you
differentiate between subscription models and memberships programs - each
represents different value propositions to the organization. Confusing the two
will confound your subscribers and infuriate your more loyal customers. A
membership program can be a powerful strategic tactic leading to a range of new
ideas and option ... just don’t forget to diligently maintain your subscriber
base.
*****
Michael Cairns is a publishing and media executive with over
25 years experience in business strategy, operations and technology
implementation. He has served on several boards and advisory groups
including the Association of American Publishers, Book Industry Study Group and
the International ISBN organization. Additionally, he has public
and private company board experience. He can be reached at michael.cairns@infomediapartners.com
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