More and more boardrooms around the world are starting to experiment with the concept of marketing to the Membership Economy.
Remember the days when your customers just bought stuff? Needed the latest Coldplay album; bought. Wanted to watch the Friends box set series six; bought. Fancied a copy of the Sunday Times; bought.
Netflix, Spotify and Amazon changed all that as they tapped into the millennial desire to experience things but without any need to actually own it.
Now, whether we realise it or not, we are all at it from films, to music, to dental care through to phones and our daily newspapers.
And now the automotive industry is tentatively sticking its proverbial toe in the water…
As mentioned in a previous case study Lyft and Uber are trialling monthly membership concepts and have the conviction, and resources, to roll them out worldwide.
But the big auto makers are also slowly moving into the market place…
For a fixed monthly amount Care by Volvo not only gives you a brand-new Volvo for a fixed time period of two or three years, it also covers all regular service and maintenance costs and provides you with comprehensive insurance and breakdown cover.
For an industry known for its lack of desire to change the automotive business is taking some brave uncharted steps in to the Membership Economy.
Porsche has gone even further with its Passport programme. Porsche Passport is an all-inclusive, monthly subscription service, currently being trialed in Atlanta. With a ‘Delivered direct to your home or office’ service, membership includes unlimited swaps – up to 22 models – plus insurance, tyres and maintenance. All for a set monthly fee of around $1200 / £900.
The benefits to both consumer and the business are attractive. The business get a consistent recurring income, month after month without the sporadic one off payment ups and downs often associated with business. Plus people tend to change ‘suppliers’ less due to the convenience of the model.
And customers get to choose what they want when they want it and pay a low set monthly fee without the hassle of ownership.
We have been advocating the benefits of the Membership Economy for almost twenty years and have yet to find an industry it can’t be implemented in.