As I sipped my morning Starbucks today, I got a call from friend and fellow consultant Roberta Matuson. She just returned from Paris, where she was charmed by a fascinating example of the Membership Economy: the Nespresso Store.
The Membership Economy is a term I use to describe the sea change that is driving companies as they transition from ownership to access, and from individual sales to ongoing, community relationships.
Roberta was walking along the Champs Elysees (lucky her) when she saw what she describes as "the most beautiful store". It wasn't clear from the outside what the store sold, so they went inside, where they discovered that the store sold Nespresso coffee machines and individual coffee capsules. The stores are streamlined, modern and opulent, with coffee machines displayed like Teslas and Ferraris.
What was especially interesting was the sheer volume of service area dedicated to "Club Members" at their flagship store. What kind of club would a coffee machine manufacturer have and why would someone want to join? Benefits include special discounts, repairs and a tastings at their retail outlets. They also include services to enable gifting of Nespresso products (packaging, delivering, welcome experience etc) to take advantage of the cultlike following they have developed.
What can be learned from Nespresso?
1. Product manufacturers (not just service providers) can benefit from membership programs.
2. Bringing together fans of your products can generate additional sales and longer term relationships
Even something as mundane as a coffee maker can be elevated to the level of aspirational club membership. Nespresso isn't the only coffee company with membership–Starbucks cards track people's purchases, provide unique benefits and are color coded as a means of indicating status. People want to belong and be connected around products and services that matter to them. Opportunities abound for creating community through an emphasis on connection and access as opposed to privacy and ownership.
