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Why membership is a smart strategy
Kongress der Deutschen Fachpresse
Berlin, May 17, 2018
Victoria Mellor CEO Novatum Group
Our agenda
• What defines a membership? • What’s a membership worth? • What drives success and failure in a
membership?• Is it right for me?
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?
Transforming Internal Communication into thedriver of employee, team and business success.
Melcrum’s member value proposition
Subscription$100
Network$1,000
Membership$10,000
People will pay more for good advice
Our transition
2011 20162012 2013 2014 2015
Membership
In-house Training
Public Training
Subscription
Melcrum’s evolution to membership
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
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
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.”
Drivers of value for the membership model
Exclusive Access
(Velvet Rope)
Total Engagement
(2-sided Brain)
Unassailable Relationships
(Moat)
Exclusivity: from scarcity to limited access
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
Dig deeper and build unassailable relationships
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?
Thank you and questionsVictoria MellorCEO, Novatum [email protected]
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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ber R
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ue
Pric
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Pricing and membership levels
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
