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Why membership is a smart strategy
Kongress der Deutschen Fachpresse
Berlin, May 17, 2018
Victoria Mellor CEO Novatum Group
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Our agenda
• What defines a membership? • What’s a membership worth? • What drives success and failure in a
membership?• Is it right for me?
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I’ve thought about (the membership model) a thousand times...it’s the stuff of daydreams.
A pure-play content business surviving on its own—not going to happen.
Revenues are flat, subs growth is tough
We’re getting fleeced by free content…technology has not been our friend.
A burning platform?
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Transforming Internal Communication into thedriver of employee, team and business success.
Melcrum’s member value proposition
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Subscription$100
Network$1,000
Membership$10,000
People will pay more for good advice
Our transition
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2011 20162012 2013 2014 2015
Membership
In-house Training
Public Training
Subscription
Melcrum’s evolution to membership
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Membership = a connected-customer strategy
Fundamental Needs
Deep Connection
...Only if fundamental needs are met will a customer accept a deep connection.
Only a deep connection can address more fundamental needs…
Adapted from Nicolaj Siggelkow, Wharton 2017.
Don’t just look for a great idea, look for a problem worth solving
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4.3x3.5x 5.4x
Average High GrowthConnected-Customer
Strategy
Offer Multiples on Pre-Tax Profit
Adapted from “Growth versus Value: Not All Revenue is Created Equally” by Kirk McLaren, 2017.
Is the membership model worth it?
Business Model Fundamentals:
• Shared cost• Renewable income• High margin (at scale)• Deep, elastic relationships
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Melcrum’s membership model
Membership Model
Shared Cost
Insights
Advisory Services
Training and Tools
Facilitated Network
“We help you make faster, better
decisions and execute them to a
world class standard.”
“The thinking you’d expect from a top
consulting firm for a fraction of the cost.”
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Drivers of value for the membership model
Exclusive Access
(Velvet Rope)
Total Engagement
(2-sided Brain)
Unassailable Relationships
(Moat)
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Exclusivity: from scarcity to limited access
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Accessing both sides of your customer’s brain
Strategic advisory
13
© Melcrum 2013
Recognition and influence building
Right – emotional engagementPersonal development
Member-driven research agenda
Practical implementation advice
Peer-to-peer exchange
Networking
Evidence-based assessment tools
Left – rational engagement
Planning
Diagnostics
Decision-making support
Insights – unbiased proven research
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Dig deeper and build unassailable relationships
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Remember
• Membership is valuable, but a challenge• Connected customer strategy = understanding
customer pain and gain• Get out of the product mindset.• Value = exclusivity, total engagement, velvet
rope• Ask, is it right for me?
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Thank you and questionsVictoria MellorCEO, Novatum [email protected]
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17
$100bn+ $55kAdvisory Services
Diagnostic & Competency Tools
In-house briefings
Forum meetings
Contribute to research agenda$1bn $33k$1bn $16k
Forum research
Website resources
Virtual briefings/Webinars
Self service tools
Training & Events Discounts$400m $10k
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Pricing and membership levels
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Melcrum’s membership offering
• Aimed at VPs of Internal Communication at Global Fortune 1,000 with urgent & ongoing IC challenges/ priorities
• Enterprise membership ie as many team members as they want for a fixed price.
• Priced according to member revenues. • Service plans track key priorities;
support is tailored accordingly • Advisory calls diagnose opportunities to
share specific research/ solutions • Webinars are one-way presentations on
specific topics with Q&A at end • In-house briefings focus on 1-2 topics;
primarily case studies & discussion re adoption/ adaption
• Member meetings share latest research and facilitate senior exec networking