Head of Product at Amazon Games | Unsubscribed: Fight Subscription Fatigue with Membership Mindset

Summary

This video highlights the evolving shift from transactional subscriptions to relational memberships, emphasizing the importance of personalization and community building. Key strategies include creating exclusive value, personalizing communications to deepen customer connections, and fostering social interaction within the community. The speaker uses examples from Spotify, Duolingo, and Peloton to illustrate how these strategies increase engagement and loyalty. By focusing on member involvement—ranging from minimal engagement to user-generated content—businesses can combat subscription fatigue and cultivate long-term relationships with customers.

Takeaways

• 😀 Subscriptions are transactional, while memberships are relational, emphasizing long-term engagement over short-term exchanges.
• 😀 Subscription fatigue is a real challenge. Combat it by creating exclusive, enduring value and fostering social connections within your community.
• 😀 Personalization in communications goes beyond using a customer’s name—it’s about making them feel understood and valued, deepening their connection with the brand.
• 😀 Spotify’s Wrapped campaign is an excellent example of personalized communications, offering users a year-in-review experience that makes them feel recognized and unique.
• 😀 Bridging the individual to the community helps increase engagement. This can be achieved through user ratings, social connections, and personalized interactions.
• 😀 Minimal member involvement (e.g., Netflix’s trending lists) can still create a sense of community by showing popular content and fostering trust in discovery.
• 😀 Member spotlights, where individual achievements are showcased on social media or websites, enhance social proof and increase customer advocacy.
• 😀 Social connection features, like Duolingo’s ability to add friends and compete, drive deeper user engagement and encourage completion of courses.
• 😀 User-generated content is a powerful tool for community building. Brands like Peloton encourage members to share their journeys, boosting brand loyalty and engagement.
• 😀 Social connections can have significant real-life benefits, such as increasing the odds of survival by 50%, making them a vital component of a successful membership model.
• 😀 The key to success in membership models lies in personalization, creating a sense of exclusivity, and encouraging meaningful social interactions to build stronger customer relationships.

Q & A

What is the main difference between subscriptions and memberships, as discussed in the transcript?

Subscriptions are transactional, focusing on providing a service or product for a fee, while memberships are relational, emphasizing ongoing engagement, community building, and creating deeper connections with customers.

How can businesses combat subscription fatigue, according to the speaker?

Businesses can combat subscription fatigue by applying a membership mentality, focusing on creating exclusive value, personalizing experiences, and fostering social connections within their communities.

How does Spotify’s Wrapped (WRA) campaign serve as an example of effective personalization?

Spotify's Wrapped campaign personalizes the experience by giving users a recap of their yearly listening habits, assigning personalized traits such as 'listening personality,' which enhances emotional connection and makes users feel understood and valued.

Why is member personalization crucial for building brand loyalty?

Personalization deepens the customer's connection with the brand by showing that the company understands their individual preferences, which enhances engagement and makes customers more invested in the brand.

What role does community engagement play in the customer experience, according to the transcript?

Community engagement strengthens the connection between the individual and the brand by fostering a sense of belonging. The speaker describes how various degrees of member involvement—from minimal to high—can enhance loyalty and deepen user engagement.

Can you explain the concept of 'social connection' as discussed in the presentation?

Social connection refers to creating opportunities for members to interact, support each other, and build relationships, which increases engagement. Examples include allowing users to follow each other, share achievements, or participate in group challenges.

What example is given to illustrate the power of member-generated content?

Peloton is highlighted as an example of effectively using member-generated content. The company encourages users to create and share content like workout hashtags, before-and-after photos, and playlists, fostering a passionate community and increasing brand loyalty.

What is the significance of the 'vampire' listening personality in Spotify's Wrapped campaign?

The 'vampire' listening personality in Spotify's Wrapped campaign is an example of how personalization can create a deeper emotional connection. It reflects a person's preference for emotional, atmospheric music, making the experience feel unique and personal.

How does Duolingo use social connection to increase user engagement?

Duolingo allows users to connect with friends, send encouragements like high-fives, and complete learning quests together. This social interaction boosts user engagement, as shown by research that indicates users who add friends are significantly more likely to complete their courses.

What example is given to show the effect of member spotlighting on customer loyalty?

The speaker shares a personal anecdote about a pottery studio that posted a picture of her work on Instagram. This member spotlight served as social proof, increasing her loyalty and motivating her to continue attending classes, illustrating the power of recognition in boosting customer engagement.