Book Review: The Membership Economy by Robbie Kellman Baxter

A lot has changed in the marketing world since I studied it in undergrad at Simmons College. Its blend of cognitive and psychological processes have always interested me. Even though I'm aware of the ways in which these levers have been used for harm in the marketing and advertising industries, understanding these principles are critical to ensuring people hear the many helpful and supportive messages out there as well.

Lately I've been striving to better understand the theoretical structures and methods of our "new economy". I am an avid user of technological communication technologies. Now I'm structuring my understanding so I can do some good with it. Ironically, I found The Membership Economy by Robbie Kellman Baxter in an Amazon brick and mortar store.

The goal of this book is to help marketers understand the ways in which people use technology to create community and therefore how to create a meaningful community around a brand. I like the tone she uses, in that she does not come off as trying to exploit members of online communities. She emphasizes the need to generate real value for the people behind the membership numbers. Within those parameters she provides a variety of examples of ways in which to accomplish the goal.

Along the way, Baxter provides plenty of practical advice. These include: types of membership organizations, options for refining membership programs, knowing which metrics to track, and the need to comb user agreements for clauses about who owns the customer database.

I can't say the psychology she describes is revolutionary, but then I suppose we shouldn't expect that. Human psychology remains pretty stable. Only the way in which the psychology is activated changes. We just have to remember to use our powers for good and not evil.

In that vein, I'll share with you my favorite quote (which is in regard to engendering a sense of community and brand loyalty): "The airlines are an example of an electric fence rather than a magnet approach to loyalty." Hopefully someone will give their C-suite executives a copy of this book so that can re-envision their frequent flier programs.

Until then, I recommend this read for organizations of any size who want to create community around their company or brand. The world is packed with information and products to consume, but the need for connection around a common interest will never disappear.